MANAGING INVENTORY AND STOCK FOR ACCURACY AND PERFORMANCE

INTRODUCTION TO MANAGING INVENTORY AND STOCK FOR ACCURACY AND PERFORMANCE

Managing Inventory and Stock is a very important function in all businesses and inadequate and inefficient monitoring will result in losses to the company which will impact the company’s bottom-line performance, i.e. impact of profit.

This program will focus on delivering various techniques to the participants on how to monitor and measures the inventory and stock performances and to take appropriate steps to eliminate the problem of inefficiency.

Participants will be taught various inventory and stock calculations to measure performance and they also need to participate in group discussions to solve cases which will be introduced in the program.

COURSE OBJECTIVES

By the end of the session, participants will able to:-

• Develop an understanding of the fundamentals and principles of inventory management
• Understand why integration is important for efficient inventory operation
• Acquired an understanding of the push and pull inventory system strategies
• Acquired knowledge in measuring inventory and stock performances
• Develop an understanding and knowledge of inventory and stock forecasting
• Able to understand operational risk management and why it is important in inventory management
• Understand the managing strategies to manage suppliers effectively to eliminate disruption to inventory supplies
• Develop full awareness and knowledge of how to implement an effective inventory system at the workplace
• Understanding key warehousing inventory principle

COURSE CONTENT

Module 1 – Inventory and Stock Management Strategies

• Definition of “inventory” and “stock”
• Inventory on business bottom-line profit
• Type of integration in inventory management
• Internal and External Integration
• Consignment stock
• Customer stock
• Vendor managed inventory
• Understanding Pareto management and how to decide the management of material and inventory
• Push and Pull strategies
• Kanban
• Reorder level and Safety stock calculation

Module 2 – Understanding the Holding Cost and Economic Order Quantity

• Different types of inventory cost
• Inventory holding cost
• Understanding inventory valuation formulas
• Calculating Inventory Holding Cost
• Economic Order Quantity

Module 3 – Key Inventory and Stock Measurement

• Inventory turnover
• Inventory to Sales
• Days on Hand
• Weeks on Hand
• Backorder Rate
• Inventory Shrinkage
• Dead / Slow Moving stock
• Available Material
• Sell Thru rate
• Lost Sales and Productive
• Picking accuracy
• Put away
• Receiving
• Inventory accuracy
• Rate of Return
• Rate of Fulfillment

Module 4 – Material and Inventory Forecasting

• Qualitative Forecasting
• Quantitative Forecasting
• Measuring Forecasting Accuracy

Module 5 – Managing Stock Accuracy

• Cycle counting technique
• Cycle counting versus Stocktaking
• Stock control technique to reduce stock movement
• Put away and Location management
• Receiving a procedure for high stock accuracy
• Picking and Issuing procedure for high stock accuracy
• Managing stock for preservation
• Key Performances Index (KPI)

Module 6 – Strategies to Reduce Inventory and Stock Disruption

• Supplies strategies
• Onboarding and Off Boarding supplier’s system
• Managing beyond the 1st tiers supplies
• Conducting audits and key areas of audits
• Leverage and Preventive Strategies
• Quality management strategies
• Cross-docking
• Key Inventory Principles for Warehousing Operation
• Inventory Picking strategies