The Latest Methods of Processing Logistics and Inventory Control

Introduction:

Inventory and logistics control is critical in operations as inventory is a current asset to a firm. Carrying inventory comes with a certain degree of risk. This risk is a component of the cost of carrying inventory. When a company stocks items in the warehouse, there is always the risk that the items may fall in real value during the period they are stored. If a company stored parts for their work centers or equipment, the parts in the warehouse could be worth far less than the price that was originally paid, and any losses, excess, obsolete and miss-managed inventory means a reduction in the company equity.

Targeted Groups:

• Inventory Managers
• Warehousing Managers
• Supply Chain and Logistics Managers
• Supply Chain Analysts
• Non-inventory people who need to gain an awareness of the issues and key drivers of stock control operations
• Inventory, Stock, Supply Chain, Logistics, Warehouse and Distribution Professionals

Course Objectives:

At the end of this course the participants will be able to:

• Improve management of inventories reaching from receiving products to storage and delivering
• See that movement to the end-user adds value
• Manage the inventory and supply chain and help you to reduce cost
• Improve customer satisfaction, and increase safety and productivity.
• Look “outside of the box”
• Understand the appropriate Inventory methods to be applied
• Establish more accurate forecast demands and maximize the degree of service by reducing your inventory with a time-conscious and integrated inventory management process
• Understand the principles, the concepts and the techniques involved.
• Apply these in a way that is financially beneficial to their companies’ balance sheets.

Targeted Competencies:

• Warehouse operations
• Planning and logistics work processes
• Assessment and planning of requirements
• Record accuracy
• Warehouse auditing
• Demand planning
• Procurement
• Warehouse management
• Logistics management

Course Content:

Unit 1: Introduction to Total Supply Chain Management:

• The Supply Objectives (The six “rights”)
• Functions and responsibilities within the Supply Chain
• Inventory Accounting
• Inter-functional Co-operation
• Impact of Functions and Sub-functions on Total Cost
• Communication

Unit 2: The Fundamentals of Stock Control:

• Factors affecting Stock Control
• The Nature of Demand
• The Pattern of Demand
• The Predictability of Demand
• Stock Levels and Stock-outs
• Warehousing Support

Unit 3: Differential Stock Control:

• Applying Pareto Analysis to Inventory Management
• ABC Categorisation

Unit 4: Stocktaking & Stock Checks:

• Types of Stock-take
• Stock Record Updating
• Discrepancy Investigation Checklist.
• Principles of Stocktaking
• Conduct of the Count

Unit 5: Classification and Coding:

• Categorization of Materials and Supplies
• Methods of Coding
• Digital Significance Coding System Development
• Stores Catalogue Maintenance

Unit 6: Provisioning and Forecasting Demand:

• The Stockholding Conflict
• Provisioning
• Range and Depth of Stockholding
• Calculating the Requirement
• Economic Order Quantity
• Operational Costs
• Forecasting the Requirement

Unit 7: Determining Safety Stock Levels:

• Applying Differential Stock Control
• Setting the Safety Stock Level

Unit 8: Key Components to Understanding Effective Inventory Control

• End-User Demand Analysis
• Forecasting for Operations and Maintenance
• Understanding Supply Lead Time
• Cost & Benefits Analysis
• Developing Inventory Policies
• The Need for Inventory in Organizations

Unit 9: Understanding Inventory Strategies:

• Creating Inventory Policy
• Incoterms and the Supply Chain Rules
• Understanding Vendor Managed Inventory (VMI) and Co-Managed Inventory (CMI)

Unit 10: Inventory Improvements:

• Using the Supply Chain
• Using the Theory of Constraints
• Practical Inventory Improvements
• Keys to Reducing Stock Levels
• Model for Planning Inventory