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Lesson 6: Exception-Based Inventory Management

At this stage in the course, we have already covered the most essential steps in Inventory Management: Classify products to focus on the most important ones first and to set appropriate inventory policy Forecast products so... Read More

Lesson 5: Ordering

It doesn’t do you any good to have a meticulously crafted inventory policy if your ordering process is haphazard. You have to place Purchase Orders in line with your stocking policy, otherwise, you’re going nowhere.... Read More

Lesson 4: Setting Inventory Policy

Setting inventory policy in line with realistic targets “If you don’t know where you are going, any road will take you there.” Setting objectives and goals for your inventory is fundamental to the success of... Read More

Lesson 3: Safety Stock

Why holding the right safety stock is so important If your suppliers always delivered the products you need in full at the exact moment you needed them AND you were able to perfectly predict when... Read More

Lesson 2: Forecasting

Forecast Management – a critical component to a healthy inventory The Pain We all know that forecasting is one of the key drivers of inventory replenishment. If we over-forecast, then we end up with excess;... Read More

Lesson 1: Inventory Classification

Are you investing time and money on items that aren’t profitable? Bad Inventory Classification Could Be Costing Your Business 10% of Potential Sales It is difficult to view hundreds, or even thousands, of inventory items every... Read More

incorrect levels driving excess inventory

Hidden Causes of Excess Inventory (5 of 5)

Incorrect levels drive excess inventory It may seem a bit obvious to say that incorrect levels can lead to excess inventory, but let’s dive in on this for just a minute. Levels are determined by... Read More

Supplier causing excess inventory

Hidden Causes of Excess Inventory (4 of 5)

Supplier constraints lead to planning complications Dealing with suppliers requires some give and take. Even the best and most efficient suppliers out there will have some constraints that need to be accounted for to keep... Read More

Hidden Causes of Excess Inventory (3 of 5)

Is customer forecasting creating excess inventory? When we discuss forecasting with prospective clients, one common topic is customer forecasts. Many planners are adamant that they should create forecasts per customer, per product, per warehouse. The... Read More

Hidden Causes of Excess Inventory (2 of 5)

Are new items causing your excess inventory? Businesses need to move forward in order to avoid stagnating or becoming irrelevant, and for many businesses that means starting new product lines. It’s not always easy to... Read More

Hidden Causes of Excess Inventory (1 of 5)

Bad forecasts lead to excess Let’s start with the leading cause of excess inventory: bad forecasts. Lots of management types skip right past this one, thinking they don’t really use forecasts in the first place.... Read More

The 5 Hidden Causes of Excess Inventory

Is your business hiding some extra weight in the back of your warehouse where nobody goes? It’s a problem most business managers don’t like to think about.  We hide the excess in complex spreadsheets and... Read More