Turning Losses into Profits!
Thank you to the Human Capital Building Institute (HCBI) and the Federation of Thai Industries (FTI) for the honor of inviting Tool Management to be the Keynote Speaker on the topic:
Transforming Fixed Costs into Variable Costs
At the seminar “Turning Losses into Profits! Reshaping Business Strategies to Enhance the Competitiveness of Thai Industry”, held as part of the Expo – TAPA 2025 and Future Mobility Thailand 2025, organized by the Department of International Trade Promotion (DITP), Ministry of Commerce (MOC).
Key Takeaways:
- In the past three years, over 3,000 factories in Thailand have closed, partly due to rising production costs and the inability to compete with cheaper imported products.
- Hidden costs often come from excessive Direct and Indirect Stock of materials and supplies, with at least 5% of these becoming Dead Stock and the proportion increasing yearly.
- Indirect Stock can be reduced immediately through efficient Material & Supply Store Management. On average, a typical factory carries at least 5 million THB in Indirect Stock, incurring additional costs such as warehouse rental and loan interest. Simple techniques to reduce Indirect Stock include:
A. System That Makes a Difference:
Store Management System (SMS) for internal inventory control and Industrial Vending Machine (IVM) for external inventory/production area management.
B. Service That Supports Your Cashflow:
Consignment Stock service – pay only for what is actually used, eliminating the need for upfront inventory purchases.
C. Solution: System + Service Integration:
Combining SMS or IVM with Consignment Stock service, starting with free system/machine installation. Materials are stocked, then withdrawn as needed, with real-time expense tracking in the specified Cost Center and automated reporting. The system can integrate with ERP and send low-stock alerts for timely replenishment, ensuring production continues smoothly.
Implementing this solution can effectively solve the problem of excessive Indirect Stock, eliminate Dead Stock, prevent material loss and over-consumption, reduce warehouse staffing, minimize stock counting, reduce paperwork, and save storage space.
Tool Management is proud to support Thai entrepreneurs in strengthening cost management, helping them remain competitive and profitable in all situations.
“We do not supply tools, we provide SOLUTIONS.”
#FTI #FederationOfThaiIndustries #HCBI #ToolManagement #IndustrialVendingMachine #IndustrySolutions #TAPA2025 #FMT2025 #CostReduction #StoreManagement
