INTRODUCTION FOR EFFECTIVE STOCK TAKING AND INVENTORY CONTROL
The objective of this training is to bring awareness and skills in managing stock and inventory effectively to ensure accuracy, efficiency, cost optimization, and sustainability in organizational operations.
Participants will gain practical knowledge on stock control systems, stock taking methods, performance measurement, and problem-solving techniques to manage inventory risks, improve operational performance, and support business continuity.
LEARNING OBJECTIVES
By the end of this program, participants will be able to:
- Understand the fundamental principles of stock and inventory management and their importance in organizational performance
- Develop and implement appropriate stock control plans to ensure stock accuracy and availability
- Plan and execute systematic stock taking and cycle counting activities
- Apply problem-solving and root cause analysis techniques to resolve stock discrepancies and issues
- Develop and monitor performance indices to measure stock efficiency, accuracy, and overall inventory performance
WHO MUST ATTEND
This program is designed for all employees involved in supply chain and inventory-related activities, including but not limited to:
- Procurement and purchasing personnel
- Warehouse and logistics team members
- Operations and production team
- Inventory controllers and storekeepers
- Supervisors and executives responsible for stock management and control
COURSE CONTENT
Module 1: Key Principle of Stock and Inventory System
This module introduces the fundamental concepts and systems used in stock and inventory management to build a strong foundation.
- Definition of Inventory and Stock
Understanding the basic meaning, purpose, and role of inventory and stock in business operations - Key Difference: Inventory versus Stock
Differentiating inventory and stock in terms of accounting, operations, and management perspective - Type of Inventory
Overview of raw materials, work-in-progress, finished goods, MRO items, and consumables - Key Principles of Stock and Inventory Management
Best practices to ensure accuracy, efficiency, cost control, and availability of stock - Picking System
Understanding different picking methods and their impact on accuracy, productivity, and customer satisfaction - Put Away System
Proper put-away practices to ensure efficient storage, easy retrieval, and optimized warehouse layout - Holding Cost
Identification and analysis of costs associated with holding inventory, including storage, handling, obsolescence, and capital cost
Module 2: Pareto for Stock Management
This module focuses on using Pareto analysis to prioritize inventory control efforts effectively.
- What is Pareto Analysis
Introduction to the 80/20 principle and its relevance in inventory management - Pareto for Stock Management
Application of Pareto analysis to identify critical stock items that require closer monitoring and control - Steps in Conducting Pareto Analysis
Step-by-step approach to classifying inventory, analyzing data, and making control decisions based on Pareto results
Module 3: Cycle Counting and Stock Taking
This module provides a structured approach to stock taking and cycle counting to maintain stock accuracy.
- Stock Taking Process
End-to-end stock taking activities, from planning to execution and reconciliation - Key Principles of Stock Taking
Best practices to ensure integrity, accuracy, and reliability of stock counts - Stock Taker Responsibilities
Roles, duties, and ethical responsibilities of personnel involved in stock taking - Auditors’ Role in Stock Taking
Understanding the role of internal and external auditors in validating stock accuracy - Cycle Counting
Concept and benefits of cycle counting compared to full stock take - Key Principles of Cycle Counting
Guidelines to ensure effective and sustainable cycle counting practices - Selection Method for Cycle Counting
Criteria and methods to select items for cycle counting based on risk and value - Identification of Probable Causes for Stock Variances
Common operational, system, and human factors contributing to stock discrepancies - Pareto Analysis of Causes of Stock Variances
Using Pareto analysis to identify major contributors to stock variance issues
Module 4: Root Cause Analysis
This module equips participants with structured problem-solving tools to address recurring stock issues.
- 8D Problem Solving Process
Application of the 8D methodology to identify root causes, implement corrective actions, and prevent recurrence of stock problems
Module 5: Stock and Inventory Management System
This module focuses on key tools, calculations, and systems used to manage inventory efficiently.
- Inventory Turnover Ratio
Understanding and calculating inventory turnover to measure stock efficiency - Economic Order Quantity (EOQ)
Determining optimal order quantities to minimize total inventory cost - Pull and Push Inventory
Comparison and application of pull and push inventory strategies - Reorder and Safety Stock Calculation
Methods to calculate reorder points and safety stock levels to prevent stock-outs - Stock Level Management
Techniques to manage minimum, maximum, and optimal stock levels - Forecasting of Stock
Basic forecasting methods to predict demand and plan inventory requirements - Kanban System
Introduction to Kanban as a visual and practical inventory control system - Periodic Replenishment
Understanding periodic review and replenishment methods for inventory control
