Effective Inventory Management

February 5, 2024 - February 8, 2024 10:00 AM - 11:30 AM
Cost: $1,195 Per Person

Format: Live Online

Course Outline

Learn comprehensive analysis procedures and tools to maximize the productivity of your investment in stock inventory.

Session 1 – February 5, 2024, 10:00 – 11:30 am Central Time
Deciding What to Stock and Forecasting Future Demand of Products

    • Goal of effective inventory management
    • Determining what products to stock in each warehouse or location
    • Ranking products by activity, cost of goods sold and profitability
    • Ensuring that all inventory is profitable or leads to other profitable sales
    • Forecasting future demand based on past usage history
    • Forecasting new stock items
    • Determining how to stock products with sporadic usage activity
    • Identifying and correcting for unusual usage activity
    • How factors such as COVID-19 and supply chain disruptions can affect a forecast
    • Measuring the accuracy of your forecast
    • Collaborative information from customers and salespeople
    • Different types of seasonality and trends

Session 2 – February 6, 2024, 10:00 – 11:30 am Central Time
Determining When to Replenish Stock (Achieving Your Customer Service Goals)

    • Calculating accurate replenishment parameters
    • Minimum/Maximum quantities
    • Order points, reorder points and line points
    • The difference between average lead times and anticipated lead times
    • Dealing with lead times in a time of supply chain chaos
    • Different method for calculating safety stock quantities
    • Using safety stock to balance customer service with your investment in stock inventory
    • Determining how often to replenish inventory

Session 3 – February 7, 2024, 10:00 – 11:30 am Central Time
Determining How Much to Order When Replenishing a Product

    • Economic order quantities
    • Purchasing when presented with special opportunities
    • Determining vendor requirements and price breaks and preseason buy
    • Buying before a price increase
    • Buying when faced with vendor allocations and shortages in the market
    • Setting up a multi-location supply network (transfer or buy)

Session 4 – February 8, 2024, 10:00 – 11:30 am Central Time
Analyzing Your Inventory Investment and Vendor Relations

    • Fill rate, customer service level and stockouts
    • Vendor analysis
    • What inventory turnover really tells you
    • Turn/earn index and gross margin return on investment
    • Excess stock and dead inventory
    • Determining your ideal inventory investment and potential turnover
    • General questions to ask each vendor
    • Negotiating price and future pricing
    • Negotiating terms
    • Developing a Vendor Compliance Template
    • Resolving disputes and developing a “win-win” relationship

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