Supply Chain Management and Inventory Management Course

Introduction:

Knowledge of Inventory Management is crucial for effectively managing procurement and the entire supply chain. Inventory is often not optimally understood, leading to excessively high inventory levels, which can increase costs, product obsolescence, and other challenges.

All aspects of inventory control and supply chain management are covered throughout this course, highlighting the relationship and difference between inventory management and supply chain management, the integral role of inventory in cementing a functional supply chain, and the importance of blending efficient inventory management with overarching supply chain strategies.

Targeted Groups:

• Inventory Managers.
• Non-inventory personnel who need to gain an understanding of the challenges and key drivers of stock control operations.
• Professionals involved in Inventory, Stock, Supply Chain, Logistics, Warehouse, and Distribution.

Course Objectives:

By the end of this supply chain management and inventory management course, participants will be able to:

• Recognize that time equates to cash in the context of the supply chain.
• Understand that only movement towards the customer adds value.
• Acknowledge the benefits of working with all players in the supply chain.
• Think outside of the box.
• Select and employ the appropriate inventory management strategies.
• Adhere to the 8 Rules for Effective Supply Chain Management.
• Critically evaluate current inventory-related procedures.
• Break down how lead time accumulation affects supply chain efficiency.
• Develop new methods for managing inventory.
• Gain practical skills to eradicate wasteful expenditures.
• Prevent internal issues that could hamper supply chain performance.
• Implement world-class tools for managing inventory within the supply chain.

Targeted Competencies:

At the end of this supply chain management and inventory management training, target competencies will be able to:

• Analyze stock and inventory levels.
• Implement productivity improvements.
• Understand the role of inventory in supply chain management.
• Strike a balance between cost and service requirements.
• Encourage continual improvement within the supply chain.
• Incorporate best-in-class practices.

Course Content:

Unit 1: Inventory and The Supply Chain:

• Define inventory management.
• Various types of stock.
• The phenomenon of demand amplification.
• The dynamics of demand replenishment in supply networks.
• Effectively managing inventory flows.
• Differentiate Type I and II supply chains.
• The Central Supply Chain Rules.
• The role of statistics in inventory management.
• Understand the concept of service level.

Unit 2: Inventory Key Concepts:

• Fundamental Component: Critical Analysis of Demand.
• Fundamental Component: Accurate Demand Forecasting.
• The Key Component: Comprehending Supply Lead Time.
• Fundamental Component: Evaluating Cost and Benefits.
• The benefits of maintaining an inventory.
• Formulating inventory policies.
• The place of inventory in organizational contexts.

Unit 3: Inventory Replenishment Methods and Systems:

• The foundational mechanics of inventory systems.
• Understand the stock time curve.
• Importance of stock components.
• Invest in stock.
• Computations for free stock.
• Economy and strategy in simple replenishment methods such as Min/Max.
• Strategies for accurate replenishment, such as Reorder Point and Reorder Level (ROP/ROL).
• Complex requirements planning systems like Materials/Manufacturing Resource/Requirements Planning (MRP / MRPII).

Unit 4: Stock Control - Coding:

• Varieties of inventory coding methods.
• The importance of managing inventory receipts.
• Identify strategies for surplus and obsolescent stock.
• Creating checklists to decide on the best coding options.

Unit 5: Stock Control - Recording:

• The significance of power separation.
• Legal issues about inventory management.
• Familiar sources of inventory inaccuracies.

Unit 6: Stock Control - Checking:

• Define roles and responsibilities in inventory management.
• Set requirements for stock control.
• Establish compelling job descriptions.
• Authority levels and their impact on inventory management.
• Tolerances and approvals in inventory processes.
• Plan for stock check programs.
• Options for stock-checking methods.
• Strategies for reconciling discrepancies in inventory records.

Unit 7: Inventory Performance:

• Evaluate inventory performance.
• Methodologies for assessing stock levels accurately.
• Implement models for effective inventory control.
• Calculate stock targets aligned with business goals.
• Reflect on inventory-related questions.
• Identify Key Performance Indicators (KPIs) for inventory in warehouses/stores.

Unit 8: Inventory Strategies:

• Push vs. Pull strategies.
• Quick response (QR) methodologies.
• Efficient consumer response (ECR) frameworks.
• Engage in collaborative planning, forecasting, and replenishment (CPFR).
• Employ Lean and Agile approaches to inventory.
• Quality Management principles in inventory strategy.
• Use Postponement to Optimize Inventory Flow.
• Streamline operations with Cross Docking.
• Inventory consolidation techniques.
• Vendor Managed Inventory (VMI) practices.
• Consignment stocking advantages.
• Integrate Co-Managed Inventory (CMI) practices.
• Understand Direct Product Profitability (DPP).
• Assess Economic Value Added (EVA) for inventory management.
• Build Collaborative supply chains for enhanced performance.

Unit 9: Inventory Improvements:

• Leverage the Supply Chain for better inventory management.
• Apply the Theory of Constraints in inventory contexts.
• Achieve practical improvements in inventory management.
• Utilize call-offs and telemetry for inventory accuracy.
• How can EDI and ICT enhance inventory management efficiency?
• Critical tactics for reducing stock levels without compromising service quality.
• The 7 Rules for optimum planning of inventory.
• A comprehensive model for detailed inventory planning.