Inventory: The Hidden Cost Center in Tooling (And How to Fix It)

Overstock and dead specials silently wreck margins. Emergency buys finish the job. Inventory is a process problem, not a stores problem.

Where the money leaks

• Duplicate/near-duplicate inserts and holders creeping in over time.
• No min-max; panic buys and stock-outs alternate.
• Specials without phase-out/last-buy plans.
• Forecasting ignores tool-life data and the build plan.

Four fixes that change outcomes

• ABC + min-max: A-items on VMI/consignment; B/C right-sized.
• Commonise holders/adapters; design new jobs to existing interfaces.
• Forecast from life: parts-per-edge × plan × safety factor by line variability.
• Govern specials: documented alternates; expiry windows; engineering approval to reorder.

KPIs to watch

• Working capital tied up, expedites/month, stock-outs/quarter, changeover delays due to stores.

Sigma’s StockSmart: dashboards pulling consumption from SPC/life logs, VMI playbooks, and standardisation drives that keep CPC predictable and your floor calm.