Every business person understands that the essence of inventory in the running of a business is huge and should not be overlooked. The reason for this is that overlooking may lead to a number of challenges for a business. Such challenges vary from missed sales, high inventory carrying cost, warehouse space issues, poor customer delivery,… Continue reading
Excess & Obsolete inventory is the most common problem in supply chain. However, Excess inventory does not have to become a liability. Rather than incur more inventory carrying cost on excess inventory, there are some practical opportunities to sell and make cash when you liquidate inventory. Thanks to consistent technological advancement, it is now possible… Continue reading
Inventory carrying cost describes the cost incurred by a business for holding inventory over a particular period of time. Similarly, inventory carry cost is the sum total of expenses which a company acquires as a result of storage. The costs include taxes, insurance, cost of obsolesce, shrinkage, warehouse, damage and relocation. As long there is… Continue reading
We all know the importance of demand forecasting in the supply chain, but the question people mostly ask which of the many forecasting methods is best suited for us? In my experience, Made-to-stock business has to forecast because that’s how they decide what to build. If there is no forecast and you are buying from… Continue reading
Do you know the importance of inventory management?I am sure most of you will say yes! But do you know the full range of benefits of inventory management? Inventory management enhances business operations with the effective flow of goods and services. Inventory Management and control implies the controlling of business stock or controlling the movement… Continue reading
Amongst the big issues killing any business valuation is the volume of inventory at hand that is placed as excess and obsolete. Excess and obsolete inventory is the outcome from several problems that ensue due to “a series of unplanned proceedings”, and often extends to many functions. For a typical business, the excess and obsolete… Continue reading
Definition: Inventory Rationalization The article, “Controlling Just Noticeable Differences in Quality”, by Joseph M. Kamen, published in the November- December 1977 issue of Harvard Business Review has influenced me over my career. In the article, Mr. Kamen talks about changes to products, process or operations that are almost so small as to not be noticed, but when… Continue reading
In last 13 years, I have been conducting stocktaking every year. When I started as a graduate I was not really aware of the purpose of stocktaking or importance of stocking. I was more interested in weekend work extra overtime being paid! Now over the years, I have learned lot more advantages of stocking, rather… Continue reading
Excess and Obsolete Inventory Policy Guide
is a Manufacturing Operations, Procurement and Supply Chain leader from international multi-site manufacturing experience in Electrical, Hydraulics and Internet industries
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