During this period of cut backs and cost reductions, we would like to introduce you to our Monitored Stock System
This system will endeavour to reduce your case cost per item but also enable the following benefits.
- Increase cash flow by invoicing in arrears for stock already used.
- Effective stock management – we monitor your stock levels.
- Cost control – set prices for an agreed period.
- Budget preparation – Monthly usage is exactly as per invoice
This system starts with an assessment of monthly stock usage and from that we can determine how much initial stock we need to deliver. This stock remains the property of Efficiency Services and can be drawn down as needed by you. At agreed intervals (usually monthly) we will carry out a stock take and replenish the stock to the agreed levels. This replenished stock is the stock that will be invoiced to you. This system has the following advantages:
- Increased Cash Flow
Under normal procedures, you would order in stock to cover your usage for a predetermined period and the invoice for this stock would fall due for payment 30 days later. Under our “Managed Stock System” you will use the stock that we have supplied into your premises as feeder stock; we then will carry out a stock take at the month end and invoice you only for the stock that has been used. As you are invoiced for usage only (in arrears), your invoices are for stock that you have already used and not for the stock sitting in your stores. This, in effect, will give you one month’s extra cash flow / credit at the start of the arrangement.
- Stock Management
Efficiency Services will monitor your stock levels at agreed intervals and replenish used stock. This will help eliminate stock shortages / wastage and also free up man-hours checking on levels. As this stock is the property of Efficiency Services you do not have to waste time on Monthly stock takes – your month starts with zero stock and ends with zero stock, your invoice shows exactly what your costs where for the period.
- Cost Control
As this arrangement runs for a set period, prices can be set. Normal period is for 12 Months
- Budget Preparation
Efficiency Services ensure that you have sufficient stock on hand and will get to know your peaks and troughs and your monthly invoice will reflect this. This will also assist you in the preparation of annual budgets.
Should you require more details on this system please do not hesitate to contact us via our contact us section.