​​​​​​​Introduction

Inventory management is a critical component of supply chain performance. Excess stock, poor control, or inaccurate forecasting can increase costs, reduce service levels, and limit profitability. This 10-day program equips participants with the knowledge and practical skills to optimize inventory management, implement world-class stock control practices, and improve supply chain efficiency.

Objectives

By the end of this program, participants will be able to:

• Analyze current inventory systems and identify gaps
• Apply methods to improve inventory accuracy and reduce waste
• Use forecasting and replenishment techniques to optimize stock levels
• Implement stock control, coding, and recording best practices
• Measure inventory performance using KPIs
• Apply advanced inventory strategies for lean, agile, and collaborative supply chains
• Develop action plans for continual improvement

Target Audience

• Supply Chain Professionals
• Inventory and Warehouse Managers
• Procurement Officers
• Production Planners
• Operations Managers

Program Outline

Day 1: Introduction to Inventory & Supply Chain

• Importance of inventory management in the supply chain
• Types of stock and classification
• Role of inventory in reducing costs and improving service
• The 8 Supply Chain Rules
• Inventory statistics and service level concepts

Day 2: Demand Analysis and Forecasting

• Understanding customer demand patterns
• Demand amplification and replenishment in networks
• Tools for demand analysis and forecasting
• Aligning inventory strategy with supply chain objectives

Day 3: Replenishment Methods & Systems

• Basic replenishment techniques: Min/Max, ROP/ROL
• Advanced replenishment: MRP and MRPII
• Lead times, safety stock, and reorder points
• Practical exercises: calculating stock requirements

Day 4: Inventory Coding, Recording, and Control

• Stock coding methods and classification systems
• Recording inventory accurately
• Handling surplus and obsolete stock
• Stock check programs, reconciliation, and authority levels
• Case study: audit of warehouse inventory

Day 5: Inventory Performance Measurement

• Assessing stock levels and targets
• Inventory KPIs: accuracy, turnover, and service level
• Monitoring performance using scorecards
• Practical exercises: KPI calculation and analysis

Day 6: Cost & Value Analysis

• Total Cost of Ownership (TCO)
• Value analysis and cost-benefit assessment
• Life cycle costing for capital equipment
• Identifying and eliminating low-value activities

Day 7: Advanced Inventory Strategies

• Push vs. pull systems
• Quick Response (QR) and Efficient Consumer Response (ECR)
• Collaborative Planning, Forecasting, and Replenishment (CPFR)
• Lean and agile inventory approaches

Day 8: Vendor and Supplier Inventory Management

• Vendor Managed Inventory (VMI) and Consignment Stock
• Co-Managed Inventory (CMI)
• Supplier performance and collaboration
• Direct Product Profitability (DPP) and Economic Value Added (EVA)

Day 9: Inventory Optimization Techniques

• Theory of Constraints applied to inventory
• Postponement, cross-docking, and consolidation techniques
• Call-offs, telemetry, and EDI/ICT integration
• Planning and implementing continuous improvements

Day 10: Action Planning & Case Studies

• Applying world-class inventory tools in practice
• Evaluating inventory scenarios and challenges
• Developing practical action plans for participants’ organizations
• Review of all tools, strategies, and KPIs
• Final group exercises and knowledge application