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Unplanned Obsolescence

Posted June 06, 2010 8:18 AM

A category known as "obsolete inventory" is a major element in inventory costs, according to this recent article from Industry Week. These materials, which move very slowly, if at all, through the system, build up because of uncertainties in supply and demand. Are you aware of obsolete inventory in your operations? Are you taking steps to reduce uncertainties?

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#1

Re: Unplanned Obsolescence

06/06/2010 10:17 PM

Actually, the acronym is FISH- First In Still Here.

Obsolete inventory is a sign that at least two business factions aren't doing their job: Management and Sales.

Sales, for not better managing the customer and the shop; and Management, for letting sales get away with it.

Blaming uncertainty in supply and demand is an excuse. It wouldn't be "obsolete" if it was intelligently managed.

Sales typically hates doing the detail work, and management waits for crisis to finally pay attention. MILO Milo

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#3
In reply to #1

Re: Unplanned Obsolescence

06/07/2010 3:05 PM

Hello Milo.

Six sentences within five paragraphs. Speaking volumes.

Milo, I hope you do not mind: I plan to print several copies of this, and visit about these at my weekly staff meeting, one paragraph at a time.

I am not sure if this should be a GA for the blog or not, but I am awarding you one anyway. Thank you, my friend. This is the sort of advice and observation that can make a business better... if that business can get past their own self-interest, their self-preservationist, blowin'-it-down-the-pipe, cronyistic (is that a word?) posture of "We have always done it that way...".

I will let you know Friday afternoon if I still have a job.

Boy, I seem to be doing some apple polishing today. Nah, just good posts!

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#4
In reply to #3

Re: Unplanned Obsolescence

06/07/2010 4:05 PM

You are welcome to use this.

That is the point of sharing, so that other companies can learn from other's mistakes and remain competitive.

In my experience, sales has seen the finish line as an inquiry handed to someone inside.

It is my belief that sales' REAL job is to sell the organization on what is going on at the customers that they are RESPONSIBLE FOR. And tell them when they see an iceberg ahead. And hold both Customer and Their company accountable for agreements made.

If sales did so, there would be no blogs about obsolete inventory or 'supply and demand.'

But Management enables them with attaboys when they lob a package to quote in over the transom. So they never grow up into responsible part of the team.

I'll be looking for your report.

Milo

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#5
In reply to #4

Re: Unplanned Obsolescence

06/11/2010 12:37 PM

Hello Milo. Good to be talking at you.

Well, your observations were given a fair and attentive hearing, and summarily dismissed.

Deeply entrenched practices are difficult (for those practicing) to admit being other than the best way to do things... ah, well. The ice is broken, and perhaps more consideration down the lane may open some thoughtful discussions here at "The Best Little Doorhouse In Fargo".

Thanks again.

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#6
In reply to #5

Re: Unplanned Obsolescence

06/11/2010 1:10 PM

And you are still there ; and they now have been implanted with the seeds of , well how come the sales guys don't do a better job of ... etc. etc.

Thanks for the followup.

Milo

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#2

Re: Unplanned Obsolescence

06/06/2010 11:03 PM

Hi!

It is one of driving forces of modern Recyclonomics (the last and final stage of Economics). It forces manufacturers to offer upgrades more and more often. Committees like ROHS were organized especially to reduce Earth pollution by damping/recycling. U.S.A. only recycles 2,000 Ton of e-waste (mostly cellphones) per year. If to follow the logic, you should have already a new production to offer an upgrade, since some materials become outdated.

Anatoliy

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