What is Slow Moving Materials?
Slow Moving Materials, which defines the “S: Slow” part of the FSN Analysis, is one of the largest volume and finance costs of Inventory Management.
Slow Moving Materials refer to materials that remain motionless in the stocks of a business for a long time and do not add value to the business.
Slow Moving Materials / Main problems caused by immobile materials/products;
Additional volume requirement = idle investment per m3,
Finance spent on idle materials = Opportunity Cost,
Financial loss as a result of idle material/product becoming out of date,
Idle material becoming a parasitic stock and creating physical hazards,
Man/hour cost as a result of relocating the idle material/product multiple times to make room for others,
etc.
Ways to prevent Slow Moving Materials
Effective inventory control planning
Performing regular analysis
-- Demand Rate Analysis
-- FSN Analysis
-- Pareto Analysis / ABC Analysis< /p>
-- XYZ Analysis / RRS Analysis< /p>
-- DIO - Days Inventory Outstanding< /p>
-- HML Analysis
Working more closely with sales or production units
Gradual reduction of stock levels. In this way, revealing hidden problems, such as decreasing water in a river shows the problems at the bottom.
Looking for ways to speed up the inventory cycle
Creating awareness that the survival of the business depends on the dtok cycle