valtitude-inventory-optimization

[valtitude-inventory-optimization]

INVENTORY OPTIMIZATION FOR SUPPLY CHAIN PLANNING HANDS-ON WORKSHOP

This program has been developed to communicate industry best practices in the area of inventory management to Supply Chain professionals.

It aims to provide the necessary technical background to enable attendees to develop & implement best practices & procedures in materials management into their own business units. It will holistically present the best practices and explain the concepts and calculations for optimizing your inventory parameters.

We preach true inventory optimization - help you to establish the right parameters your process and systems may need to run a lean machine with just optimal inventories to deliver the service and fill rates. This is a hands-on, practical workshop with many exercises and case studies and excel-based work out problems. Every planner and material manager will leave the training hall with a diverse skill set to do their day to day jobs.

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Who Should Attend Inventory Optimiztion

Production Planners

Supply Chain Analysts

Director of Supply Chain

Director of Value Chain

Analysts in the Supply Chain

Inventory Planners

Operations Planners

Financial Analysts

Director of Logistics

Director of Customer Service

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Valtitude Inventory Optimization information:

Purpose of Inventory – Introduction to  Inventory Management Principles  

Toolkit for Materials Management

Principles of Inventory Management

Inventory Optimization

Manage by Exception

ABC Classification for Inventory

Work-site Inventory Management  

Techniques Including Kanban

Multi-echelon distribution

Measurement and KPIs for Inventory  Management

Forecast Accuracy

Min-Max Models

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Economic Order Quantity and Purchase Quantity Discounts:

Principles of Inventory management

Economic Order Quantity

Derivation of the EOQ

Determinants of EOQ

Ordering Costs versus Carrying Costs

Components of Inventory carrying/holding costs – capital, storage, obsolescence, handling (breakdown) and their impact

Estimating Inventory Carrying costs for various industries

Purchase Quantity Discount

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SCM Process - Overview of Demand/Supply planning –

 Overview of Demand/supply and MPS Process

Production Strategies

Key objectives of supply chain management – Customer demand fulfillment

S&OP as the key driver of monthly planning process

Inventory impact on functional Stakeholders

Why Forecast and Plan?

The Service – Cost – Balance Model

Introduction to Demand Planning- What, Why and How?

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Product Segmentation and ABC analysis –

SKU Segmentation for inventory strategies ABC analysis – Classification philosophy Pareto analysis of SKU’s based on dollar usage Item Criticality as a factor of Sales Service and Lead time Frequency of Usage Excess, Obsolete and Slowmoving Alignment with the product lifecycle  

Discontinuance and end of life (EOL), as appropriate

Process flow for segmenting SKU's using the above  techniques   - Example using a three-dimensional matrix;     ABC / Volume / Critical / Status: excess, obsolete        Impact of Segmentation on Cycle Counting and Inventory accuracy

[valtitude-inventory-optimization]

Inventory Optimization and Management- Safety Stock

Independent Demand Item Reordering

Safety Stock calculations

Determinants of Safety Stock – Service Level Agreement, Demand Volatility and Lead Time

Effect of Demand Uncertainty in Safety Stock – Different Scenarios

The perils of variability in Supplier lead time

Supplier Lead time Variance

Effect of Supplier Uncertainty on Safety Stock Calculations

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Introduction to Inventory Management Principles – Why carry inventory?

 Inventory Categories - Direct materials - Indirect Materials - MRO OEM  - MRO Industrial

 Purpose of Inventory - Buffering - Hedging - Decoupling 

Inventory Strategies -  Make to Order    -  Make to Stock -  Build to Order/ Mass    customization  Postponement - Engineer to Order

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Digital Supply Chain and its impact on Inventory Management:

Supply Chain Tower & Improved end to end visibility

AI-driven Dashboards for real-time alerts

E-commerce and e-inventory management

Automation in inventory management

Big data to comb through key SCM triggers

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Inventory Optimization and Management- Min Max Models:

Re-order Point

Demand During Lead Time

Definition of MIN level in the Min-Max Model

Definition of MAX level in the Min-Max Models

Inventory Cycle and Cycle Time 

Cycle Stock

Time phased Order Point (TPOP)

Lifetime buys and Minimum Buys

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Work-site Inventory Management Techniques:

Challenges and Benefits of improving & maintaining inventory Accuracy

Periodic review process vs. Perpetual Inventory

Cycle counting vs. Physical Inventory

Kanban systems

Kanban Methodology

Determining Container Size and Quantity

Safety stock, Min-Max, and DDLT in Kanbans.

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Measurement and KPIs Forecast Error, Customer Service and Inventories

Service Level measurements    - Fill-Rate and On-time Delivery - Order complete      

Service Metrics exercise

Inventory Performance Measures - Inventory Accuracy - Inventory Turns - Days on Hand

Forecast accuracy - MAPE, MAD, MPE, and RMSE  - Calculation exercise

Supplier Performance Measures - Schedule Adherence  - Lead Time Adherence

Relationship between Schedule Adherence, Customer Service and Inventory Availability

[valtitude-inventory-optimization]

We preach true inventory optimization - help you to establish the right parameters your process and systems may need to run a lean machine with just optimal inventories to deliver the service and fill rates. This is a hands-on, practical workshop with many exercises and case studies and excel-based work out problems. Every planner and material manager will leave the training hall with a diverse skill set to do their day to day jobs.

Insightful information on... 

Purpose of Inventory – Introduction to Inventory Management Principles 

Toolkit for Materials Management 

Principles of Inventory Management 

Inventory Optimization 

Manage by Exception 

ABC Classification for Inventory 

Work-site Inventory Management 

Techniques Including Kanban 

Multi-echelon distribution 

Measurement and KPIs for Inventory Management 

Forecast Accuracy 

Min-Max Models

[valtitude-inventory-optimization]

Inventory is one of the working capital components that can be influenced by poor demand information and can be a big drain in the cash-to-cash cycle.

Although not measured and monitored from a supply chain perspective, receivables and payables are as important to monitor in the business model. Optimal inventory is defined as the inventory that is just sufficient to meet your customer orders.

Since this is a balancing act, demand forecast accuracy summarily determines both your inventory levels and service levels. You can make a trade-off between the two for a given demand forecast error.

Higher the required service levels, higher are the needed inventory.

Lower the forecast accuracy, higher the needed inventory to attain a specific service level.

A small effort on the demand side will result in tremendous benefits and improved demand information to help the supply chain. Even if the demand is highly uncertain, you can install a demand management process that will link itself to the retail or the final customer demand to help determine the order forecast for the lead time.

Yes, it is true you can achieve a 99% or more customer service level by keeping extremely high levels of inventory, especially if you are in the dark about your demand forecasts. Or, if the organization has no idea how customer demand is generated.