MANAGING EFFECTIVE INVENTORY BALANCING AND COST CONTROL

INTRODUCTION FOR MANAGING EFFECTIVE INVENTORY BALANCING AND COST CONTROL

Effective Inventory management is important to company’s survival. Many companies around the world has collapsed or becoming unprofitable due to poor inventory management.

This program is developed to enhance participant knowledge, developing the necessary awareness and know how to manage inventory effectively through good balancing technique to ensure that the biggest killer of inventory, i.e. cost is well managed.

COURSE OBJECTIVES

• Understand the important and purpose of the  key principle of Inventory management
• Develop understanding on the different type of inventory management strategies
• Understand the different type of valuation method
• Identify the correct type inventory replenishment strategies to use
• Develop understanding between work instruction and Standard Operating Procedure
• Understand the key warehousing operating processes for efficient inventory management

COURSE CONTENT

Module 1 – Introducing Basic Inventory and Stock Management and Procedure 

• Definition of “inventory” and “stock”
• Types of inventory
• Key Principle of Inventory Management
• Inventory on business bottom-line profit
• Type of integration in inventory management
• Internal and External Integration
• Consignment stock
• Vendor managed inventory
• Push and Pull strategies
• Pareto technique
• Key Principle of Inventory management
• Work instruction best practices

Module 2 – Replenishment strategies

• Holding cost
• Economic Order Quantity
• Continuous order method
• Periodic review method
• Safety stock calculation
• Reorder stock calculation

Module 3 – Material and Inventory Forecasting

• Inventory Qualitative Forecasting method
• Inventory Quantitative Forecasting method
• Measuring Inventory Forecasting Accuracy

Module 4 – Managing Inventory Accuracy

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

Module 5 – Inventory Storage and Distribution Techniques

• Fixed location versus Dynamic (Random) location system
• Indirect versus Direct Putaway method
• Cross docking for efficient inventory turnover
• Picking strategies for distribution
• Key Inventory Principles for Warehousing operation

Module 6 – Inventory Key Indicators

• Inventory turnover rate
• Week and Days on hand ratio
• Put away efficiency
• Fulfillment KPI
• Backorder KPI
• SLOB KPI
• Shrinkage KPI

Module 7 – Inventory Balancing Management

• Key process of inventory balancing
• Performance tracking