Our 2024 Inventory Report

I. Inventory Overview 

During the inventory count, we focused on the changes in quantities for the following product categories: 

Raw Coils and Sheets: 

Both categories showed a slight downward trend in inventory levels. Specifically, raw coils decreased by 1.54%, while raw sheets fell by 2.23%. These changes reflect the success of Ruisen's refined cost management strategy. 

Scraps: 

Narrow coils remained stable overall, but it is noteworthy that there was a 2.38% increase in miscellaneous scraps, marking the first increase in recent years. This change highlights a rise in small and micro orders and indicates the expanding application of specialized materials. 

Welding Materials: 

Compared to last year, inventory levels of welding materials significantly decreased, dropping by approximately 5.2%. This substantial decline demonstrates Ruisen's accurate understanding of customer demands and the comprehensive implementation of its "one-stop service" philosophy. 

II. Optimization Strategies 

Based on the issues identified during the inventory process, we implemented the following measures to optimize and effectively manage inventory: 

Addressing the Increase in Miscellaneous Medium and Thick Plate Scraps: 

Considering the current outbound rate of medium and thick plates and their specific shapes, we have optimized their placement for better organization and space utilization. This improvement also facilitates subsequent outbound operations.

Managing Miscellaneous Scraps: 

To address challenges in managing scraps, we categorized them based on maximum utilization and standard dimensions, cutting them accordingly. After applying protective film, we added clear labels for easy identification, which helps reduce error rates.

Handling Disparities in Turnover Rates of Different Welding Material Models: 

We conducted a comprehensive review and classification of all welding materials. Detailed statistics and categorization for each model were performed, followed by unified shelving. This approach not only frees up more space but also simplifies management and visibility.