Inventory Management

Blog 8 Nov_ Inventory Management

We deal with inventory everyday

How often are your grocery shopping trips per week? Usually the answer is: weekly shopping to stock up some food. 

There are the most common reasons:

1. 1.     I don’t want to shop everyday
2. 2.     Some friends might drop by
3. 3.     I am too busy to spend time on frequent shopping’s trips.

We will usually analyze each types of reasons to generate an inventory list.  Inventories will need to be managed via different methodologies because there are different types of inventories.  

Inventories are found everywhere in Supply Chain, and are induced by many practices such as;

1. 1.     Distribution warehouses
2. 2.     Production with Make To Stock approach
3. 3.     Sourcing from more remote suppliers that will need longer lead time
4. 4.     Return from Customers
5. 5.     Systems accuracy

In order to have a proper inventory control, we will need to have frequent assessments and detailed planning analysis on Order Forecast, Safety Stock Value, Production Capacity and Procurement Lead time.

Contact Grace Lim @ graceyeechuenlim@hotmail.com if needs more information.

About the Author

Grace is a freelancer for Supply Chain Management specialized in helping companies reducing operation costs and increase profits through optimized Supply Chain, Sourcing and