feedthechildren.org Mike Ghassali Vice President – Corporate Partnerships Tel: Solution-Based Product Donations: Keeping Unneeded, Good Product Out of the Landfill and Out of Your Warehouse

feedthechildren.org Our Vision Feed the Children distributed more than $344 million in food, essentials, educational supplies, and medicine, impacting close to 9 million individuals in the U.S. in fiscal year Create a world where no child goes to bed hungry.

feedthechildren.org Is Poverty a Real Problem? In 2013: 48.1 million people lived in food-insecure households million adults lived in households with very low food security. 8.6 million children lived in food-insecure households in which children, along with adults, were food insecure. 765,000 children (1.0 percent of the nation’s children) lived in households in which one or more child experienced very low food security.

feedthechildren.org It is a Real Problem According to The National Center on Family Homelessness, one out of every 30 American children (or approximately 2.5 million children) goes to sleep without a home of his or her own each year.

feedthechildren.org True Cost of Carrying Inventory Cash flow allows your company to reinvest and grow the company. Money tied in idle inventory is valued at about 15% of inventory value. Calculate the cost of $10 million worth of inventory: Credit line costs you$1.5 million Storage runs 4% of inventory value$ 400,000 Taxes at 2.5% $ 250,000 Damaged and spoilage at 1%$ 100,000 Insurance at.5%$ 50,000 Total to carry a $10 million inventory $2.3 million Inventory carrying costs Warehouse space Administrative management costs Scrap, sorting, and rework Obsolescence and deterioration Insurance Taxes Cost of capital

feedthechildren.org Not Dealing with Excess Stock The large order that will clear out the excess inventory never came. Poor Handling of Inventory Obsolescence Most items in a warehouse that have not had an inventory turnover within a 12-month period can be classified as obsolete and should be systematically removed from inventory to offset unnecessary carrying costs. Not Analyzing Inventory Seasonality Preparing for higher and lower periods of demand, which may involve altering procurement rates at different times of the year, or storing extra products in inventory to be on hand during peak seasons of the year. Inventory Stalling Why Do I Have High Inventory?

feedthechildren.org How to Optimize My Inventory and Keep It Out of the Landfills. ABC Analysis A, B, and C classifications are assigned to items which have a high, medium, and low annual consumption value. Putting class A items closer to your shipping and receiving area in your warehouse will save time and labor costs when processing customer orders. Inventory Redistribution Stock is automatically transferred between stocking locations, such as different warehouses where demand maybe be higher for certain items in a certain area as compared to other regions. First In, First Out (FIFO) Oldest inventory items are sold first and the newest products are sold last. Last In, First Out (LIFO) LIFO is a popular account inventory management method for manufacturers or distributors that deal with frequent fluctuations in the cost of items purchased.

feedthechildren.org Analyze Your Inventory Create two charts : Inventory Based on Sales and Inventory Based on Stock In both charts, classify your items into A, B, C, and D. Then calculate your inventory for each group. Do your A items represent 50% of your inventory? If not, then your inventory is out of balance.

feedthechildren.org Reduce replenishment lead times Eliminate obsolete stock Centralize your inventory Have realistic service level SKU rationalization Hold forecasters accountable Publish your metrics internally

feedthechildren.org Where Do You Fit In? F ood and Nutrition E ssentials E ducation D isaster Relief Don’t Send It to The Landfill, Donate It

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