Details

This comprehensive training course examines the renewed emphasis on running organizations leaner, effectively and efficiently. The renewed pressure to reduce cost as well as investment, while maintaining customer service levels is essential in world-class performance. Inventory Management is still one of the least understood practices in many companies and managers often fail to see the causal link between Inventory Management and good business results.

In addition, the mechanistic review of Min/Max reorder points will lead to disappointing results and in capital intensive companies, the value of spares in inventory often exceeds the value of all other inventory combined. Huge investments, excessive costs and low availability of stock often cause a knee-jerk reaction instead of adopting sound inventory management principles.

This training course will feature:

• Reduction in inventory investment
• Improved customer satisfaction
• Reduced cost of running the inventory management function
• Understanding inventory categories in management
• Management of Stock Keeping Units in terms of their priorities

Learning Objectives

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

• Understand the importance of inventory and the role it plays in the profitability of the company
• Examine the most appropriate method for managing an item
• Understand the value chain in inventory management
• Apply the best methods to optimize the investment in inventory
• Examine the appropriate inventory management technique for each type of item

Course Contents

Module 1: Foundations of Inventory Management in the Value Chain

• Purpose and role of inventory in the value chain
• Classification of inventory
• Eliminating obsolete inventory
• Pareto Law for product classification
• Inventory location and organization

Module 2: Planning, Forecasting, and Demand Management

• Demand planning and customer segmentation
• Hierarchy of planning and aggregate planning
• Master scheduling
• Basic forecasting methods
• Principles of forecasting
• Effect of lead time on forecasting
• Quantitative and qualitative forecasting
• Tracking forecast accuracy
• Determining safety stock

Module 3: Inventory Control Systems and Technology

• Inventory recording methods: period stock take, cycle counting, perpetual recording
• Barcodes for inventory tracking
• Use of RFID for inventory movement
• Economic Order Quantity (EOQ) and order level management
• Inventory accounting

Module 4: Performance Measurement and Operational Efficiency

• Stock turnover rate
• Customer service and cost of operations
• Measuring system effectiveness
• Using performance metrics for improvement
• Class exercise on selective inventory management

Whom to Attend?

Those involved in inventory, albeit as supplier, buyer, materials planner, warehousing, finance or even end-customer

Professionals and staff in the organization who are responsible for reducing costs, increasing productivity, raising inventory turns and enhancing customer service through high fill rates, accurate information and excellent order fulfilment