Inventory Management and Control

About the Course

Inventory levels are dictated by network design and levels of customer service. The challenge in this area is to find ways to maintain the desired level of customer service with the lowest possible inventory levels. Any action that reduces variability will reduce demand for extra inventory. A good inventory management system will segment customers (place them into relevant demographic groups or rank them according to profitability to the organisation) so that demand per segment can be better understood and more profitable customers can be kept satisfied.

Product profitability analysis will help determine which inventory is more valuable to ensure it is always in stock and might be spot-stocked only at specific locations. Inventory also needs close integration with transportation, a meaningful way to reduce inventory and improve organisation performance.

This Inventory Management and Control training course provides basic definitions and concepts for planning and controlling the Inventory inbound and outbound of an organisation. It explains how inventory management techniques can be used in a wide variety of situations, particularly in stores where the inventory can be anything from fast-moving products to slow-moving spares and learn how inventory structuring, individual item control, forecasting and coordination provide the base for logistics management.

Core Objectives

Delegates will achieve the following objectives:

• Perform proper classification of inventory and use best practices for item specification/cataloguing
• Use forecasting techniques to predict demand and better manage lead times
• Identify the optimum ordering quantity and determine safety stocks and reorder points
• Conduct cycle counts, improve inventory record accuracy, and find ways to
• Understand various techniques to reduce inventory, including JIT (Just-In-Time)
• Apply Key Performance Indicators (KPIs) to measure and improve inventory performance
• Manage the warehouse effectively 
• Develop better skills for housekeeping and safety within the warehouse

Training Approach

This training course is supported by interactive discussions, role play, and case studies to highlight the delegates' techniques. Will use Pre & Post-course assessments to measure the effectiveness of this training and measure the skill and ability of the delegates.

The Attendees

Likewise, it will be valuable to the professionals but not limited to the following:

• Supply Chain, Warehouse, & Inventory Managers
• Senior Storekeepers
• Storekeeper Staff
• Procurement Managers
• Project Managers
• Financial Managers
• Production Managers

Daily Discussion

DAY ONE: INTRODUCTION TO INVENTORY MANAGEMENT

• Objectives and Responsibilities of Inventory Management
• Reasons to Hold Inventory
• Identifying Inventory Costs
• Customer Service in Inventory Management
• Inventory Carrying Cost

DAY TWO: INVENTORY CLASSIFICATION AND RECORD ACCURACY

• Types of Inventory
• The ABC Classification
• Uses of the ABC Classification
• Inventory Record Accuracy
• Reasons for Poor Accuracy
• Periodic and Cycle Counting
• Systems and Methodology of Counting
• Steps to Follow Before, During and After the Audit

DAY THREE: FORECASTING DEMAND AND LEAD TIME

• Forecasting Objectives
• Techniques of Forecasting
• Seasonal Demand
• Moving Average
• Exponential Smoothing
• Control of Lead Time
• Evaluation of Forecasts
• Lead Time Management

DAY FOUR: INVENTORY SYSTEMS

• Inventory Costs
• The Economic Order Quantity Model
• When and How Much to Order
• Controlling Safety Stocks
• How to Deal with Quantity Discounts?
• Counting and Controlling Inventory
• Counting Methods and Accuracy
• Periodic and Cycle Counting

DAY FIVE: REDUCING INVENTORY INVESTMENT

• Identification and Disposal of Surplus
• Material Requirements Planning (MRP)
• Just-In-Time (J.I.T.) Method
• Efficient Warehouse Management
• 5s Techniques