Inventory Management

Introduction

Inventory Management is the process of efficiently overseeing and controlling the flow of goods, products, or materials within a business or organization. It involves the planning, procurement, storage, tracking, and distribution of inventory items to meet customer demand while minimizing carrying costs and ensuring a smooth operation. Effective inventory management plays a crucial role in ensuring that a company has the right amount of inventory on hand, neither excessive nor insufficient, to meet its operational needs and customer demands.

Course Objectives

• Understand the Importance of Inventory
• Learn Inventory Fundamentals
• Master Inventory Control Techniques
• Enhance Demand Forecasting Skills
• Reduce Inventory Risks
• Enhance Warehouse Management
• Implement Key Performance Indicators (KPIs)
• Develop Strategies for Continuous Improvement
• Cost Control
• Adapt to Market Changes
• Operational Efficiency

Course Outlines

Day 1
Warehouse Operations and Stock Audit

• Warehouse Operations
• Introduction to Warehouse Operations.
• Warehouse layout and design.
• Inventory handling and storage techniques.
• Order picking and packing processes.
• Warehouse safety and security.
• Stock Audit
• Stock audit fundamentals.
• Different methods of conducting stock audits.
• Setting tolerance levels for discrepancies.
• Approvals and authorization in stock management.
• Reconciliation procedures to address discrepancies.

Day 2
Inventory and the Supply Chain

• Understanding the Supply Chain
• The role of inventory in the supply chain.
• Supply chain management fundamentals.
• Inventory's impact on lead times.
• Effective supply chain strategies.
• Integration in the Supply Chain
• Collaborative demand planning.
• Vendor-managed inventory (VMI) and consignment inventory.
• Cross-docking and just-in-time (JIT) inventory.
• Managing inventory in a global supply chain.

Day 3
Fundamentals of Demand Forecasting

• Forecasting Process
• Steps in the demand forecasting process.
• Qualitative, quantitative, and time series forecasting methods.
• Factors affecting demand forecasting accuracy.
• Factors Influencing Demand
• The effect of lead time on inventory levels.
• Safety stock and lead time demand.
• Forecasting demand in volatile markets.
• Measuring and evaluating forecasting errors.

Day 4
Inventory Control Systems

• Inventory Planning and Control
• Introduction to Inventory Control Systems.
• Material Requirements Planning (MRP).
• Manufacturing Resource Planning (MRPII).
• Enterprise Resource Planning (ERP).
• Inventory Optimization
• Reorder Point (ROP) system.
• Periodic Review system.
• Determination of safety stock.
• Balancing costs and service levels in inventory control.

Day 5
Inventory Performance and Assessment

• Key Performance Indicators (KPIs)
• Understanding Inventory KPIs in warehouses and stores.
• Metrics for measuring inventory turnover and accuracy.
• Monitoring service levels and customer satisfaction.
• Reporting and Decision-Making
• Importance of inventory management reports.
• Case studies on inventory performance and assessment.
• Using data and analytics for informed decision-making.
• Course summary and Q&A session.