Supply Chain and Inventory Management

Introduction:

Effective inventory control is crucial for optimizing procurement activities and managing the supply chain. Poor inventory management can lead to high costs, product obsolescence, and inefficiencies. This course addresses all facets of inventory and supply chain management, emphasizing the critical role of inventory in maintaining a functional supply chain and the importance of integrating efficient inventory practices with overall supply chain strategies.

Objectives:

By the end of this Supply Chain Management and Inventory Management course, participants will be able to:

• Appreciate that in supply chain processes, time equates to cash.
• Understand that value is only added by movements towards the customer.
• Recognize the benefits of collaborating with all supply chain stakeholders.
• Develop innovative solutions to inventory-related problems.
• Identify and implement effective inventory management strategies.
• Apply the Eight Rules for Effective Supply Chain Management.
• Evaluate the effectiveness of current inventory management procedures.
• Analyze how lead time accumulation impacts supply chain efficiency.
• Create new methods for inventory management.
• Gain practical skills to eliminate unnecessary expenses.
• Address internal constraints affecting supply chain performance.
• Implement best practices for inventory control within supply chain management.

Training Techniques:

• Practice Sessions
• Project-Based Learning
• Individual Presentations
• Group Work
• Interactive Role Play
• Scenarios

Course Outline:

Unit 1: Inventory in the Organizational Structure and Processes

• Explain the inventory function in marketing.
• Inventory types.
• Bullwhip effect.
• Demand resupply patterns in a supply chain.
• Inventory turnover policy.
• Characterize supply chains (Type I and II).
• Central Supply Chain Interface rules.
• Use of statistics in inventory management.
• Service level concepts.

Unit 2: Inventory Main Factors

• Dissecting demand.
• Demand strategizing.
• Understanding supply time.
• Cost versus benefit analysis.
• Necessity of inventory.
• Creating an inventory management plan.
• Inventory within the organizational environment.

Unit 3: Replenishing Inventory Management Systems

• Ensuring effective inventory systems.
• Stock level time graph.
• Stock elements and investments.
• Calculating free stock.
• Replenishment systems: Min/Max, Reorder Point (ROP), Reorder Level (ROL), MRP / MRPII.

Unit 4: Stock Control - Coding

• Inventory coding variations.
• Control of stock receipts.
• Strategies for surplus and obsolete stocks.
• Decision-making for multiple coding alternatives.

Unit 5: Stock Control - Recording

• Task division and power separation.
• Legal issues in inventory management.
• Common sources of inventory inaccuracies.

Unit 6: Stock Control - Checking

• Functions and roles of inventory references.
• Conditions for stock control systems.
• Job descriptions and levels of authority.
• Tolerances, approvals, and stock taking programs.
• Stock taking methods.
• Inventory records reconciliation techniques.

Unit 7: Inventory Performance

• Analyze inventory performance.
• Stock accuracy assessment methods.
• Models of inventory control.
• Stock targets and business performance issues.
• Indicators for warehouse/store inventory performance.

Unit 8: Inventory Strategies

• Push vs. Pull strategies.
• QR methodologies.
• Efficient Consumer Response models.
• CPFR (Collaborative Planning, Forecasting, and Replenishment).
• Lean Plus Agile strategies.
• Quality Management concepts.
• Postponement strategies.
• Cross Docking.
• Inventory consolidation.
• Vendor Managed Inventory (VMI).
• Consignment saving features.
• CMI practices.
• Direct Product Profitability.
• Economic Value Added estimation.
• Building resilient and collaborative supply chains.

Unit 9: Inventory Improvements

• Using the Supply Chain to improve inventory management.
• Theory of Constraints application.
• Enhancement ideas for inventory management.
• Call-offs and telemetry for accuracy.
• EDI and ICT in inventory management.
• Strategies for lowering stock levels without quality loss.
• Seven rules for organizing inventory planning.
• Detailed framework model for operational-level inventory planning.