Inventory Management 201: Inventory Planning: Average, standard deviation, lead time, Service Level agreetment, Make to Stock, Make to order, Make to forecast, Safety stock, MOQ, reorder point, etc
As logical next step after the ABC Analysis comes the Inventory Planning.
Inventory planning is the process of determining the optimal quantity and timing of inventory for the purpose of aligning it with sales and production capacity. Inventory planning affects a company's cash flow and profits while contributing to an efficient supply chain.
With this Service we commit to deliver you a tool easy to understand and easy to use to start defining the right parameters to start managing your inventory in a proper way. Based on a ABC/Pareto Analysis, we will segregate the items or categories that are more relevant to use a more detailed strategy to keep up the service level and working capital optimization. In order to do it we are to teach show you how define key data as average consuption in proper time line (monthly, weekly, quaterly as needed), standard deviation, lead time, etc to choose what is the right strategy for every item in your inventory like Make to Stock or Make to order.
We will show how to use tha statiscal information to define key parameters such as Safety Stock, reorder point, MOQ, etc to automatize and optimice your replenishment cycle and even be able to define a Procurement Plan among other useful information for decision making.
Working Capital and Service Level are no jokes and nowdays with more tecnology and awareness regarding the importance of cashflow , nowdays Inventory Planning is key to succed. Nobody wants to find out there are obsole or excess inventory that is almost imposinble to sale or with a negative margin, inventory policies in a mature organization will write off inventory and that costs goes directly to bottom line, we dont want that to happen.
On a two months program and an one hour weekly sessions we can develop for your company a tool good enough to train your key personal realated woth inventory management and to be used as needed to run all the inventory planning and replenisment parameters in a smartsheet easy to understand and to keep updated.