You're struggling to manage your inventory. How can you make sure you're not losing money?

Inventory Tracking is important to keep tab on inventory health, You can track the As-is health by multiple metrics and segmentation and track the performance of Inventory in planning & target the desired levels after identifying the profiling of SKUs and set targets in order to minimise sales loss to plan better now let’s talk about execution where we can control the damages by better handling and maintain the shelf life by aging Analytics & accuracy at Warehouse by right set of processes and frequent cycle counts and audits. It’s would be blend of planning and execution both is important to have optimal inventory levels and accurate stocks in value chain, I am ready to support with my learning to provide better solutions. Thanks !

If you are leaking money through unused inventory or unmanaged inventory, it means that the management process is not in sync with the ground processes. What you need is a good system ( process ) with proper checks and balances to ensure that everything that comes in and goes out is under control and can be linked back to. This can be done with a good inventory/warehouse management system. If yours is a business that is close to your clients, JIT is a good option to save money on stored inventory. Otherwise its best to have reorder and safety level maintained which gives insights to the levels of inventory. A good system also gives you a proper analysis on the ABC value of goods lying in the warehouse as well as the FSN value of movement.

Utilize inventory management software to track stock levels accurately, implement regular inventory audits to identify any discrepancies, and establish clear protocols for receiving, storing, and rotating inventory to minimize loss and ensure efficient use of resources.

Box in, box out. What happens in between depends plenty on your decision to have all-accurately matching items organized and counted. 1. Cycle counting 2. Establish reorder points and safety stock levels 3. Demand forecasting optimization 4. IMS set up (Technology) 5. Include barcode scanners and RFID Continuous monitoring and adaptation to evolving business conditions are essential components of effective inventory management strategies.

Know what is in hand. Ensure right demand goes into MRP Whatever demand MRP throws, review it and then only forward to vendors Strong review and governance around Slow & Obsolete inventory

Para evitar pérdidas en la gestión de inventario, es fundamental pronosticar la demanda con precisión. Utiliza datos históricos y tendencias de mercado para prever patrones de compra. Incorpora herramientas de análisis predictivo y software de gestión de inventario que consideren factores como estacionalidad y eventos especiales. Además, colabora estrechamente con el equipo de ventas y marketing para obtener información actualizada sobre promociones y campañas. Al anticipar la demanda con precisión, se evitan excedentes de stock y faltantes, maximizando así la rentabilidad y reduciendo los riesgos de pérdida por inventario no vendido o insuficiente.

Forecasting demand accurately is crucial for effective inventory management and planning. Here are some steps to help you forecast demand effectively: Collect Historical Data: Gather historical sales data. Identify Factors: Identify factors that influence demand. Choose Forecasting Methods: Select appropriate forecasting methods & incorporate Artificial Intelligence if possible. Machine Learning: Machine learning algorithms. Validate and Adjust: Continuously monitor forecast accuracy. Collaborate with Stakeholders: Involve stakeholders from sales, marketing, etc.. And to finish two basic things: common sense and communication, a lot of communication. Thanks!

Analyzing past inventory movements helps forecast demand by revealing trends, seasonality, and fluctuations in sales volume. Understanding demand patterns allows businesses to adjust inventory levels accordingly, ensuring adequate stock during peak periods and preventing overstocking during slower times. By evaluating lead time dynamics and assessing the impact of promotions and new product introductions, businesses can make informed decisions about inventory management, optimizing stock levels to meet customer demand efficiently while minimizing costs and risks.

Forecasting future demand is important in effectively managing inventory. Here is how: 1.) Forecasting demand helps to minimize holding costs (storage, depreciation etc) by ensuring that inventory levels are aligned with expected sales. 2.) Anticipating demand helps to ensure product availability and avoid stock-outs, thereby enhancing customer satisfaction and loyalty. 3.) Insights from demand forecasting can inform strategic decisions such as pricing and inventory management practices. 4.) Forecasting demand helps to mitigate risks associated with market fluctuations, seasonality, and trends. 5.) Accurately predicting demand for your products helps to maintain optimal inventory levels and avoid losing sales/tying up capital.

I like to keep it simple. There are lots of software programs that work if everyone does their part. There are also other factors that can bog down the flow of inventory. Clear Communication is key. Communicate with your staff and your clients. Whether a small business or large, forecasts need to be acquired and factored into budgets, reconciliation of inventory on a regular (we do monthly) basis, and know what is most urgent to process if choices have to be made between shipments. Get your forecasts from your regular clients to enable you to keep inventory levels steady. Walk the warehouse on a regular basis. Ask questions, keep your employees engaged and invested in the success of the whole team. Expect to be inspected any time.

Setting reorder levels helps to plan the orders for inventory.. Reorder levels which are fixed taking into account of consumption patterns, safety stock and lead time helps the procurement team have sufficient time to order the stock by getting a good number of quotes and further price negotiations so that the ordering costs are reduced.

The important thing to consider is the lead time variations and the forecasting accuracy. The number of nodes you add, the more lead time varies.

Para asegurar una gestión eficiente del inventario y evitar pérdidas, es fundamental establecer puntos de reorden precisos. Analiza el tiempo de plazo de entrega de proveedores y la demanda promedio de productos para determinar cuándo realizar nuevos pedidos. Considera factores como el nivel de servicio deseado y el costo de almacenamiento. Utiliza sistemas de gestión de inventario que automáticamente generen órdenes de reabastecimiento cuando se alcance el punto de reorden. Al establecer estos puntos de manera adecuada, se evitan faltantes y excesos de stock, optimizando así los costos de inventario y mejorando la rentabilidad del negocio.

Setting your reorder points relies on factors such as lead time, safety stock, and desired service level. Lead time denotes the duration between ordering and receiving goods. Safety stock represents additional inventory maintained to mitigate uncertainty and variability. Service level reflects the percentage of orders you aim to fulfill without stockouts. By determining reorder points, you can uphold optimal inventory levels and reduce holding and ordering expenses.

The optimal way in calculating the periodic reorder levels is by tracking the consumption, lead time, storage capacities. In the F&B industry the product shelf life must be factored into consideration.

Implement MRP and setup simple but efficient rules like buffer stock/safety lead time. Frozen order lead time. MOQ. Etc. Implement PFEP and control MRP parameters compliance. Measure any excess or shortage, define root cause and fix. Engage plant staff. Train ordering and planning teams. Implement visual control in warehouse or supermarket to “see” inventory overflow or alerts of shortages.

Para evitar pérdidas en la gestión de inventarios, es vital implementar métodos efectivos de control. Utiliza sistemas de código de barras o RFID para rastrear productos con precisión. Establece procesos de recepción y despacho claros, con verificaciones de conteo y calidad. Utiliza sistemas de gestión de inventario automatizados que registren movimientos y alerten sobre niveles bajos. Además, implementa políticas de rotación de stock para evitar obsolescencia. Capacita al personal en el uso de estos métodos y realiza auditorías periódicas. Al tener un control detallado, se minimizan los errores y se maximiza la eficiencia, evitando pérdidas innecesarias de inventario y dinero.

1. Demand Forecasting 2. ABC Analysis: Categorize inventory items based on their importance and profitability. Classify them as A (most valuable), B (moderately valuable), or C (least valuable). 3. Economic Order Quantity (EOQ): Use the EOQ formula to calculate the optimal order quantity that minimizes the total costs of ordering and holding inventory. 4. Just-in-time (JIT) Inventory Management 5. Safety Stock Inventory: Maintain a safety stock of inventory to buffer. 6. Regular Inventory Audits: Conduct regular physical counts or cycle counts. 7. Vendor Managed Inventory (VMI): Collaborate with suppliers to allow them to manage your inventory. 8. Consignment Inventory: Utilize consignment inventory.

Inventory is money hence whenever we will block the inventory means we are blocking the money which is really not a good sign for a business. We need to keep control on Inventory in such a way that we are not losing anything because of over inventory & short inventory. We can use pareto (80-20) principle which says 80% of effects come from 20% of the causes. We can also check the different methods like ABC analysis, XYZ analysis, JIT system, safety stocks & many more to implement inventory control method.

Inventories can be classified based on the type of industry. These inventories are typically high value investments. Therefore, a firm must invest heavily on technologies that can assist to ensure money is not lost. For instance, POS technologies are helpful in ensuring that each inventory is accounted for. Also, ERP modules can can manage inventories at warehousing, dispatch and returns.

Para asegurar una gestión eficiente del inventario y evitar pérdidas, es esencial evaluar regularmente su rendimiento. Analiza métricas clave como el costo promedio por unidad, el tiempo de rotación y la tasa de obsolescencia. Identifica productos de bajo rendimiento y considera descuentos o liquidaciones para deshacerte de ellos. Revisa las tendencias de venta y ajusta los niveles de inventario según la demanda. Utiliza software de gestión de inventario que genere informes detallados y análisis comparativos. Al evaluar continuamente el rendimiento del inventario, se optimiza la rentabilidad y se reducen las pérdidas al mantener un inventario adecuado y eficiente.

Historical data is key when evaluating your inventories performance and the health of your business. It’s important to set realistic turn over rates and phase out any aging inventory. This is an ongoing task and it’s important to set benchmarks and implement processes to consistently promote a healthy inventory within your department.

Performance also in terms of wastage needs to be monitored. Weekly or Monthly stock takes are necessary to be able to perform a reconciliation and realise any variances which may occur. A deep understanding of these variances may shed light on poor performance, but it does not end there. Solutions can be put together to curb poor performance in the future. An evaluation of these solutions is necessary to determine whether they were effective in the next period/cycle.

Here is my take on evaluating inventory performance: 1.) Conduct an inventory aging analysis to identify the age of inventory on hand and identify slow-moving or obsolete items to reduce carrying costs and avoid potential losses. 2.) When dealing with issues of discrepancies in inventory performance metrics, conduct root cause analysis to identify underlying causes and implement corrective action. 3.) Consider metrics related to customer satisfaction such as order accuracy. These metrics provide insights into how well your inventory management practices are meeting customer expectations. 4.) Benchmarking - This helps to provide valuable context into how your inventory management practices stack up against industry standards.

Understanding your inventory and stock movements through analytics is key to evaluating trends and actuals relating to demand forecasting, obsolescence and costs. This information can be viewed/used in many ways to then guide your staff.

Having well-trained staff is paramount in effective inventory management, particularly when they understand the significance of certain items within the inventory. A knowledgeable team ensures smooth operations and strategic decision-making. Staff who comprehend the importance of specific items can prioritize their handling, ensuring critical inventory is managed with utmost care. They can also anticipate demand fluctuations and respond promptly to inventory needs, thereby minimizing stockouts and excess inventory. Moreover, educated personnel can contribute valuable insights and suggestions for improving inventory management processes, leading to increased efficiency and cost savings.

Para evitar pérdidas en la gestión de inventarios, es fundamental capacitar adecuadamente al personal. Brinda entrenamiento sobre procedimientos de recepción, almacenamiento y despacho. Enseña técnicas de conteo y verificación para mantener la precisión de los registros. Capacita en el uso de sistemas de gestión de inventarios y tecnologías de seguimiento. Además, educa sobre la importancia de la rotación de stock y la identificación de productos obsoletos. Al tener un personal bien capacitado, se reducen errores, se mejora la eficiencia y se optimiza el manejo del inventario, lo que resulta en menores pérdidas y un negocio más rentable.

As a training and coaching guy I would focus on staff training. Before diving into training, ensure that your staff understands the significance of inventory management. Explain how proper inventory control contributes to the company's bottom line by reducing waste, avoiding stockouts, and optimizing storage costs. Highlighting the direct connection between their actions and the company's financial health can motivate staff to be more attentive and responsible. Empower your staff by involving them in decision-making processes related to inventory management. Encourage them to share their ideas on how to improve inventory efficiency or solve problems. This not only boosts morale but also fosters a sense of ownership.

One step you can’t miss is training. It’s a key element in the process of controlling inventory. Knowledge is 100% power. The more your team understands the what/why behind numbers you can tie the whole picture together. Communicating the numbers. Let them know our progress and share the wins or opportunities. Get feedback to create the buy in & engagement.

Insights on training your staff effectively in inventory management: 1.) Supplement theoretical knowledge with hands-on training experiences. This could include simulation exercises that allow for the application of inventory management principles in real-world scenarios. 2.) Foster a culture of continuous learning and professional development through inventory management workshops, seminars, online courses etc. 3.) Solicit feedback from staff members on their training experiences, challenges, and suggestions for improvement. 4.) Recognize and reward employees who demonstrate excellence in inventory management practices. 5.) Provide comprehensive documentation such as SOPs to support staff members in their inventory management roles.

En base a mi experiencia considero que, primero se debe tener procedimientos claros y asegurados en el flujo y control de los inventarios, desde la catalogación, despacho y conteos cíclicos con un ERI por encima del 98% como mínimo. Luego la Gerencia de Finanzas debe establecer políticas de Compras e Inventarios (Insumos, Suministros, y PT) con coberturas de stock (entre 1 a 3 meses prom.) para maximizar la rotación de inventarios, lo cual permitirá liberar capital y generar mayor liquidez, y evitar obsolescencia e inmovilización de inventario (pérdidas de dinero). El Plan de Ventas y su exactitud, será el mayor responsable y afectará lo bueno que se haya hecho en el Demand Planning, MRP y abastecimiento.

When you start measuring your inventory levels effectively then you're halfway thru :) forecasting, replenishment levels, control measures and improving performance can be done thru below steps... Having end-to-end brainstorm sessions and arrive a clear Plan DO Check Act (PDCA) and improve cycle... On top of this needs knowledge sharing and expert ideas and will drive the system for improve efficency in the process and inventory is a continuous learn and improve process and it doesn't have an end point!

Para garantizar una gestión de inventario efectiva y evitar pérdidas financieras, es esencial tener en cuenta varios aspectos clave. Primero, implementa sistemas de control de inventario precisos y actualizados. Segundo, establece puntos de reorden para evitar faltantes y excesos de stock. Tercero, evalúa regularmente el rendimiento del inventario y ajusta según sea necesario. Cuarto, capacita al personal en procedimientos de manejo de inventario. Quinto, utiliza tecnologías avanzadas para mejorar la precisión y eficiencia. Al tener en cuenta estos aspectos, se minimizan los riesgos de pérdida y se optimiza la rentabilidad en la gestión de inventarios.

I will engage with vendor and get extra support to liquiodate the inventory by offering lower price based on quantitiy purchases or work on some attractive bundles with the vendor support

Considero extremamente importante analisar a consistência e confiabilidade da base de dados, integração de informações, sistemas e procedimentos bem como ter um time capaz de entender os conceitos básicos de gestão de estoque. Todas as ações relacionadas no artigo precisam ocorrer de forma integrada, sistematizada e consistente. Fazer gestão de Inventário nao requer apenas conceitos de replenishment, forecast, excel, etc. Você precisa entender como cada açao desde o planejamento, armazenamento, distribuição se integram bem como entender os conceitos contábeis e politicas de gestão de estoque da empresa. Melhor parte da cadeia. Quando acertamos o ponto de equilíbrio, todos ganham.