Back to the Basics Part 4: The Holy Grail of Supply Chain Management
The Holy Grail of Supply Chain Management - Tim Wise, Tight Lines Consulting & Coaching, and Jeffrey Porter, StockIQ www.stockiqtech.com, have managed and tracked inventory for various businesses for years, you will either have too much or not enough – that is the way it works – either way your ability to manage your inventory costs will largely depend on your inventory management capabilities and processes. While there are other processes like supply/inventory planning that impact your inventory, we will break this down into two categories for inventory management – How Much and How Accurate. During this video, the following Inventory Management is discussed: 1. ABC Stratification 2. XYZ Analysis 3. Service Level 4. Order Policy Key Takeaways 1. Inventory policies are not generic based on a base lead time or product category. 2. All products and SKUs are not created equal – analyze your inventory to segment by ABC Stratification, Forecastability, Service Level = Order Policy 3. Use available tools/technology to determine inventory levels and stocking goals.