Introduction
This two (2) day course focuses on the operational and strategic management of inventories, the role of inventory management and the professionals behind this important organizational function as it directly relates to the improvement of the company’s competitiveness. It will cover the most important aspects of inventory management from warehouse design and operations through forecasting requirements and parts variety reduction to evaluating inventory
practices and building an effective inventory management plan of action.
Key Knowledge Objectives
This course aims to help the supply chain professional to understand and apply four (4) major and significant aspects of inventory management:
- Optimize Inventory Levels
- Build an Inventory Management Plan
- Design & Manage Warehouse Operations
- Increase Accuracy, Traceability & Reduce Parts Variety
Participants should be able to understand the financial impacts of inventory and the risks in both over and under holding of inventory – the management of inventory, including lead time management, demand planning and interfacing with other functional groups directly and indirectly involved in inventory planning and operations.
They should also be able to understand the importance of effective Warehouse Management in minimizing the cost associated with the storing, moving and transporting goods into and out of the warehouse storage locations; the importance of reconciled physical count balances and system records and most importantly, the efficient, fast, precise and perfectly-timed issuances of the right quality & quantity of stocks to its intended users.
Course Content
Day 1: Introduction – Review of the “Fundamentals”
What is Inventory Management
– Working Capital Cycle
Why is Inventory Management important
Why keep Inventory
How much Inventory to Keep
The Financial Implications of Holding Inventory
– Inventory Carrying Cost
– Effect on Financial
The Cost of not holding enough Inventory
The Role of the Inventory Manager
Exercises / Practical Application to Workplace
Setting the Stage for Effective Inventory Management
Introduction to Effective Inventory Management
Inventory Management& the Supply Chain Strategy
Demand Forecasting
Lead time Management
Exercises / Practical Application to Work / Questions & Answers
Understanding SAP Fundamentals & Terminology
Inventory Planning
Introduction to Inventory Planning
Service Level Policies – OTIF
Inventory Categorization Techniques
– ABC Analysis
– Fast & Slow Moving, Excess, Obsolete & Defective Stocks
Traceability and Variety Reduction
Inventory Coding Systems
The Inventory Management Plan
Group Discussion / Practical Application to Work
Day 2: Inventory Operations
Introduction to Inventory Operations
Monitoring Movements
– Inventory Accuracy
Measuring and Valuation of Inventory
Receipt & Issuance of Inventory
Systems to Replenish Inventory
How Much to Order – EOQ,
When to Place an Order – ROP, JIT
Exercises / Practical Application to Work
Warehouse Planning & Systems
Introduction to Warehouse Planning & Systems
Warehouse Location & Acquisition Options
Warehouse Design
Warehouse Layout
Materials Handling & Equipment
Warehouse Operations
Record Keeping & Communication
Perpetual Systems/Continuous Review Systems
International Quality Standards
Physical Inventory & Cycle Counting
Exercises / Practical Application to Work
Who Should Attend
Warehouse/Inventory Personnel, Logistics personnel