Inventory Management in Service Logistics Industry

Talking Logistics

What is Inventory Management? For Manufacturing it’s about carrying zero or minimum inventory. For Logistics the focus is on high inventory turns. Inventory Management is about having a right balance of expectations from different functions of the supply chain.

The Best Way to Set Inventory Targets?


Source: Gartner, Cover Considerations—How to Optimize Retail and Consumer Product Inventory Targets, 2017. But I have to differ with the conclusions of a recent report, “ Cover Considerations — How to Optimize Retail and Consumer Product Inventory Targets.”.

Inventory Management


Inventory management, network infrastructure, and labor deployment are all critical components necessary to meet this intense customer demand. Inventory Management Strategy. This leaves us with one option: pushing the boundaries of current inventory management practices.

Enhancing Supply Chain Network Design with Sophisticated Inventory Optimization


By Chris Keller | Principal, Supply Chain Design | Chainalytics | The complexity involved in simultaneously optimizing a supply chain network and the inventory within that network has traditionally proven to be a sufficient barrier to completing such exercises.

Vendor Managed Inventory Model for Supply Chain Cost Reductions


Below I will outline how a vendor managed inventory model, in conjunction with reverse marketing, value analysis, and collaboration will achieve supply chain cost reductions. Vendor Managed Inventory Model for Supply Chain Cost Reductions. The distributor maintains the inventory plan.

Inventory Allocation: How Retailers Can Find the Perfect Balance


For anyone looking to minimize operating costs while maintaining margins, inventory allocation is one area that simply cannot be overlooked! Inventory Allocation Explained – Why You Need a Strategy. Inventory Allocation Rules: What Parameter Should Be in Place?

Sales, Inventory & Operations Planning (SiOP) – Part Two


The lack of a good forecast creates service issues, unbalanced inventories and operational firefighting costs. There is only 1 way to improve service and reduce cost and inventory in this type of situations: collaborative forecasting.

A Quick Method for Assessing Inventory Health


Last week we discussed a Gartner framework for gauging inventory health, but noted that the Inventory Quality Ratio (IQR) could take a while to implement ( Click here to read last week’s blog). This is different than traditional ABC inventory classification (to see why, see this blog ).

7 Key Factors that Underpin the Success of your Inventory Optimization Initiative

Supply Chain Opz

From the most basic to the most advanced organization, Inventory Optimization is a critical goal and one which underpins the effectiveness of the supply chain operation. Inventory Optimization requires an organization to sustain and maintain the right mix of cost versus service. In this article we will examine inventory optimization processes as part of a structured sequential journey and examine seven of the key factors in delivering the optimal mix of stock.

10 Best Practices for Inventory Cycle Counts


They’re disruptive I know but they’re an essential part of maintaining inventory accuracy. Here, we’ll introduce inventory cycle counting and show you how it can complement your annual stock take exercise. What is an Inventory Cycle Count? Introduction.

Why Sales Reports are Important to Inventory Management


When managing your inventory, you are always looking for ways to optimise and improve your operations. Trying to keep healthy levels of inventory without overstocking or understocking is a difficult practice that most inventory businesses experience. Having inventory stock go in either direction can be a costly exercise. If you can’t sell off that inventory stock, then was it really worth getting the bargain?

3 Inventory Management Bottlenecks That Stifle Growth


Typical bottlenecks occur when an inventory management system fails to meet a business’ growing demands. Here we identify three inventory management bottlenecks which indicate that it’s time to do something about it. Unorganised warehouse and inventory stock. You might choose to implement a method of inventory categorisation such as ABC , an SDE analysis , or even an FSN analysis.

Craft Beer Inventory Management


Craft brewers, however, face the same inventory issues as any other business with simple manufacturing and physical products that need to be shipped around. Inventory Management Issues for Craft Breweries. Know your inventory available for sale. Manage your beer inventory.

An Inventory Audit Guide for Wholesalers and Distributors


However, we shall soon see why an inventory audit is critical for businesses dealing with physical stock. You shouldn’t confuse an inventory audit with two popular means of tallying your stock: physical stock takes and cycle counting. What is an Inventory Audit.

Is it time to integrate your supply chain design with execution?

JDA software

its inventory management and where and how well it deploys inventory to optimize customer service levels and profitability. Inventory management. Likewise, operational considerations like optimized inventory management have never been more important.

Top 10 Organizational Mistakes That Limit Your Warehouse Management (infographic)

USC Consulting Group

Just as a lack of exercise and a poor diet can cause our blood to become clogged with cholesterol and fat, inefficient warehouse management can lead to serious issues for your operation. For example, one of the most common mistakes made in these environments is having too much inventory.

Netsuite Expands Cloud-Based Inventory Management with New Demand Planning Capabilities

Supply Chain Network

Designed to enable wholesalers, manufacturers, retailers, and distributors to achieve best-in-class inventory management practices, NetSuite Demand Planning enables companies to forecast peaks and troughs in demand and minimize capital tied up in inventory. allowing companies to tightly align sales forecasts with inventory replenishment plans. This supports businesses with minimizing excess inventory, eliminating stock outs, and improving customer satisfaction.

Etsy Order, Purchase & Inventory Management for Creators, Makers and Doers


As a creative entrepreneur, there are various ways to get a handle on managing the orders, purchases, and inventory of your hand-made goods. Manage Inventory. Firstly, why should you consider a third-party inventory management system outside of Etsy? Introduction.

8-Step Importing Guide For First Timers


You could do it manually but why do it when smart inventory management systems , such as EMERGE App , can automatically calculate landed costs for you? Exercise common sense and order a few pieces of each size, color or variant. Introduction.

What If You Could Take The Guesswork Out Of Forecast Planning? Guest Post from Osgood Vogler


Persistent planning biases can tie up cash by driving excess inventory. This exercise is important because it will help supply chain leaders understand exactly where planning is necessary and how to drive exceptional performance in their supply chain operations.

Industry 4.0 getting whipped

Supply Chain Movement

Or might we be returning to old supply chain principles that vanished in the era of mass production – a ‘make-to-order’ culture marked by personal service, bespoke products and minimal inventory? They almost always lead to excess inventory and require humans to fine tune them over time.

Distribution Network Optimization: Modeling Tools Won’t Give You the Answer

Consumer Goods Logistics

Warehouse optimization modeling exercises examine the upside of being closer to customers versus the downside of carrying more inventory in more locations.

8-Step Importing Guide For First Timers


You could do it manually but why do it when smart inventory management systems , such as EMERGE App , can automatically calculate landed costs for you? Exercise common sense and order a few pieces of each size, color or variant. Introduction.

Building a Business Case for Improved Demand Forecasting


You must be able to make a direct link between the forecasting accuracy improvement and customer service, cost, efficiency, inventory, cash flow or capability improvements,” says Gartner. 9% reduction in inventory obsolescence (percent of inventory value).

What are supply chain professionals using to make network decisions? 


None of the respondents share data across multiple applications to manage inventory, network design and S&OP in an integrated way. Care should be exercised though , because the same reasons that have made the technology more accessible should’ve made it more affordable.

The Future of Supply Chain Management is in AI


That said, it is not an overnight exercise or an isolated activity. Artificial Intelligence Blog Supply Chain big data inventory management logistics machine learning

Why demand sensing is value-based performance management

The Network Effect

Pursuing improved forecasts is certainly not an academic exercise. Some research indicates a 6% forecast improvement could improve the perfect order by 10% and deliver a 10-15% reduction in unnecessary inventory. Got Credit/Flickr.

KPI 180

Forecasting noise disturbs the S&OP process

Supply Chain Movement

In other words: a slight decline in forecast accuracy results in an exponential increase in inventory.”. This is treated as a serious exercise; anyone who dares to deviate from the statistical forecast by more than 10 percent better have a very good explanation for doing so. “We’re

The Avnet Tech Games IX Welcomes The Inaugural JDA Supply Chain Challenge

Supply Chain Nation

The contest was more than just a technical exercise; it also tested each team’s supply chain skills as they related to forecasting, inventory management, pricing, capacity planning and other real-world materials management challenges.

Building Your First Model


What can cause disruptions on a certain production line, are there alternatives for a specific STO flow… make sure that once you have completed this exercise, you have a thorough understanding of how your business operates including the bottlenecks and potential threats. Inventory by product location. Current inventory. Target inventory. S&OP Building a model Demand Inventory Planning Supply

An executive’s guide to AI in supply chain management


The ability of a machine to perform human-like functions such as perceiving, reasoning, learning, interacting with the environment, problem solving and exercising creativity to form plans, make decisions and achieve goals.

BANZ to oversee Dragon City warehouse & logistics

Logistics Middle East

The company will conduct regular inventory management exercises, which include distribution, warehousing, inventory control, delivery and transportation

Supply Chain Design: Growing Scope, Community, and Collaboration

Talking Logistics

One of my predictions for 2015 was that more companies will start treating Supply Chain Design as a continuous business process instead of a standalone project or a once-a-year exercise.

Laying the Foundation for Advanced Supply Chain Planning Capabilities in the Food and Beverage Industry


The accuracy of your forecast has a direct impact on the amount of inventory you carry, the number of unplanned production changeovers, and the amount of expedited material shipments. Listed in the balance sheet, inventory tends to attract a high level of attention from senior management.

Gartner's Five Stages of Supply Chain Planning Technology Maturity


Companies want more integration; such as their demand plans to feed their inventory replenishment and production decisions. They want processes like demand planning, inventory replenishment, S&OP and order promising to work well together. Payne says that this role is often fulfilled by multi-echelon inventory optimization (MEIO) software. Companies want to look across their end-to-end supply chain and figure out the best place to put inventory,” Payne says. “Do

[INFOGRAPHIC] Supply Chain Planning: 4 Essential Year End Questions to Ask Yourself


Examining what went right and identifying areas for growth and opportunity are powerful exercises that both prevent the recurrence of negative behaviors and reinforce our commitment to priorities. As they work through that inventory, there will be “a healthy rebound” in freight volumes.

Next-Gen Supply Chain Management

Talking Logistics

Then, and only then, as a category manager or merchant buyer, will a supply chain professional and his or her internal customers be able to get a comprehensive picture of the inventory of the products they are responsible for, including what’s on the shipper’s dock, at the consolidator, on the ocean vessel or stack train or truck, in the DC and on the store shelf.