About the Course
Overbuying inventory can be a silent killer of cash flow and profitability. This practical, hands-on course provides a comprehensive toolkit for implementing a lean and efficient inventory management system. It moves beyond simple stock-taking to focus on the strategic decisions that prevent overstocking, minimise waste and secure the right product availability.
Purpose of the course
The purpose of this course is to teach you how to optimise your inventory, reduce capital tied up in stock and eliminate the costly problem of overbuying. You will learn to establish lean, data-driven systems for tracking, forecasting and replenishment, to maintain optimal stock levels, boost cash flow and ensure products are available when customers need them without unnecessary risk.
Upon completion of this course, you will be able to:
Cost Calculation
Calculate the Total Cost of Ownership (TCO) for inventory, including carrying costs and ordering costs, to inform purchasing decisions.
System Setup
Implement a practical cycle counting program that ensures inventory records are accurate without interrupting daily operations.
Lead Time Management
Measure and utilise supplier lead times to set precise and effective Reorder Points (ROP).
Safety Stock Calculation
Determine appropriate Safety Stock levels using basic demand variability and lead time uncertainty metrics to minimise stock-outs.
Forecasting Fundamentals
Use simple, accessible methods (e.g., moving average) to create short-term demand forecasts for key products.
Stock Categorisation
Apply ABC Analysis to prioritise stock management efforts, focusing intense control on high-value items.
Liquidation Strategy
Develop a structured process and timeline for identifying, discounting and disposing of slow-moving or obsolete inventory to recover cash.
Inventory Metric Tracking
Monitor key performance indicators (KPIs) such as Inventory Turnover Rate and Days Sales in Inventory (DSI) to measure operational efficiency.
The curriculum is built around these key areas:
Understanding Inventory Costs
Go beyond the purchase price to calculate the true cost of holding stock, including storage, insurance, obsolescence and opportunity costs, making the financial case for lean management.
Stock Tracking Basics
Implement simple, effective systems for physical counting, cycle counting and recording stock movements, even with limited technology.
Reorder Points and Lead Times
Master the formulae and factors required to accurately set dynamic reorder points and account for supplier lead times to prevent both stockouts and panic ordering.
Managing Slow-Moving Stock
Develop strategies for identifying, valuing and proactively liquidating obsolete or slow-moving items to free up capital and space.
Preventing Stock-Outs
Learn to use simple forecasting methods and safety stock calculations to ensure that high-demand products are always available, maximising sales opportunities.
Inventory Review Systems
Implement periodic and continuous review systems (e.g., Min-Max, ABC Analysis) to manage different types of inventory with the appropriate level of attention and rigor.
Your Instructor
TBC
