Effective Inventory Management

Increase profitability through modern inventory management
Minimize inventory level and optimize inventory operation & management to increase profitability 
  1. Insufficient stock of materials for production or insufficient stock of goods for delivery slows your business down.
  2. Goods/Materials that are broken, worn out, or expired during long period in stock must be destroyed due to their unqualified condition.
  3. Overstocking has a negative impact on working capital management. 

With those aspects, good inventory management is one of key factors contributing to any company's success.

OBJECTIVES

  • Understand the importance of inventory & the role it plays in the profitability of the company.
  • Understand concepts of reasonable inventory and various purchasing methods
  • Know how to manage inventory analyze inventory and optimize inventory operation & management.

TARGET

  • Team leader, manager of the warehouse management department and related departments.

CONTENT

Part 1: Overview of inventory management

1.1. Role of Inventory Management in a business
1.2. The relationship between inventory management and business performance
1.3. Inventory's characteristics and its significance
1.4. Challenges in inventory management

Part 2: Concept of inventory optimization and purchasing optimization
2.1 Types of inventory and concepts of reasonable inventory 

a. Clarify Cycle stock - Safety Stock - Strategic stock
b. Determine maximum stock level - Reduce average stock level
c. Reduce Cycle stock - Safety Stock - Strategic stock

2.2. Purchasing methods to optimize inventory:
a. 4 methods of purchasing

b. Days Sales of Inventory
c. How to calculate safety stock
d. Management of unscheduled orders

Part 3. Inventory and Financial Impacts
3.1. Methods of inventory valuation
3.2. Impacts of inventory on profit and loss 

Part 4. Warehouse management and inventory methods
4.1. Specific identification inventory method

a. What is Specific identification inventory method?
b. Requirements for specific identification inventory method
c. ABC Analysis (Pareto) - Rationalize inventory procedure and reduce inventory level
d. Inventory evaluation and solutions 
 
4.2. Warehouse Management
a. Principles of warehouse management

b. Warehouse Layout
c. 5S Activity  - Visualize Inventory
d. Preservation in warehouse 
e. Rules - Regulations - Guidelines for warehouse management.

Part 5: Action plan
 

REFERENCE

Download “Effective Inventory Management – Increase profitability through modern inventory management techniques" pamphlet (PDF version) here:

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