Introduction
Knowledge of Inventory Management is critical for the effective management of procurement and the supply chain, however, Inventory is commonly not understood. Therefore too high levels of inventory are held with attendant increases in costs, product obsolescence, etc.
The purpose of this seminar is to:
- Enable delegates to evaluate current procedures
- Examine how lead time builds up
- Change methods of managing inventory.
- It provides practical skills to eliminate wasteful costs.
- Avoid those internal problems that limit performance.
- Understand and implement the "world-class" tools for managing inventory in the supply chain.
Objectives
This course will help you learn how to:
- Appreciate that time is cash
- See that movement to the customer is all that adds value
- Work with all of the supply chain players pays
- Look “outside of the box”
- Use the appropriate methods
- Apply the 8 Rules for Effective Supply Chain Management
Target Audience
- Supply Chain and Logistics Professionals
- Inventory and Warehouse Managers
- Procurement and Purchasing Specialists
- Operations and Production Managers
- Materials and Stock Control Officers
- Distribution and Planning Professionals
- Manufacturing and Retail Supply Chain Teams
- Business Analysts in supply chain optimization
- Professionals responsible for cost reduction and process improvement
- Organizations aiming to implement lean and efficient inventory systems
Outlines
Day 1: Inventory and the Supply Chain
- Inventory management definition
- Types of stock
- Demand amplifications
- Demand replenishment in networks
- Managing the flows
- Type I and II supply chains
- The Supply Chain Rules
- Inventory and statistics
- Concept of service level
Inventory Key Concepts
- Key Component: Demand Analysis
- Key Component: Demand Forecasting
- Key Component: Supply Lead Time
- Key Component: Cost & Benefits
- Inventory benefits
- Inventory policies
- Inventory in organizations
Day 2: Stock Control-Recording
- Separation of powers
- Legal issues
- How do we get inaccuracies?
Stock Control-Checking
- Roles and responsibility
- Requirements
- Job Descriptions
- Authority levels
- Tolerance and approvals
- The stock check program
- Options for stock-checking methods
- Reconciliations / discrepancies
Day 3: Inventory Replenishment Methods and Systems
- Basic mechanics of inventory systems
- The stock time curve
- Stock components
- Stock investment
- Free stock calculation
- Simple replenishment methods, for example, Min/Max
- Accurate replenishment methods, for example, Reorder Point and Reorder Level (ROP/ROL)
- Requirements planning systems, for example, Materials/Manufacturing Resource/Requirements Planning (MRP / MRPII)
Stock Control-Coding
- Different coding methods
- Importance of inventory receipts
- Identifying surplus and obsolescent stock
- Checklists to help in deciding the best option
ay 4: Inventory Performance
- Inventory Performance
- Assessing the stock level
- Models for implementing inventory control
- Determining stock targets
- Inventory questions
- Inventory KPIs in warehouses/stores
Inventory Strategies
- Push/pull
- Quick response (QR)
- Efficient consumer response (ECR)
- Collaborative planning forecasting and replenishment (CPFR)
- Lean and agile approaches
- Quality Management
- Postponement
- Cross Docking
- Consolidation
- Vendor Managed Inventory (VMI)
- Consignment stocking
- Co-Managed Inventory (CMI)
- Direct product profitability (DPP)
- Economic value added (EVA)
- Collaborative supply chains
Day 5: Inventory Improvements
- Using the Supply Chain
- Using the Theory of Constraints
- Practical inventory improvements
- Call-offs and Telemetry
- EDI and ICT
- Keys to reducing stock levels
- The 7 Rules for planning inventory
- Model for planning inventory
