Effective Inventory Management System
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Transcript of Effective Inventory Management System
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8/18/2019 Effective Inventory Management System
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T I P S & S T R A T E G I E S O N M A N A G I N G Y O U R
W A Y T O S U C C E S S
P R E S E N T E D B Y
Y V O N N E I . W I L S O N
Effective Inventory Management(EIM)
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E I M W I L L E N A B L E Y O U R C O M P A N Y T OM E E T O R E X C E E D C U S T O M E R S ’E X P E C T A T I O N S O F P R O D U C T
A V A I L A B I L I T Y W I T H T H E A M O U N T O F
E A C H I T E M T H A T W I L L M A X I M I Z E T H EO R G A N I Z A T I O N ’ S N E T P R O F I T A B I L I T Y A N D T O M I N I M I Z E O U R C O S T S .
The Goal of EIM
by Yvonne I. Wilson - Materials Manager
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K E Y I N P U T V A R I A B L E S
How Will Yo !chieve an EIM
"ystem#
Inven!"#M$n$%een
Inven!"#C!n"!'
E((e)*veInven!"#
M$n$%een
by Yvonne I. Wilson - Materials Manager
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Inven!"# C!n"!' Inven!"# M$n$%een
$rotecting an% )!n"!''*n% the inventorystore% in yor warehose an% every other
stoc& location an% %oing everything 'ossible
to minimie the cost of filling or%ers
e'lenishing or stoc& inventory withthe right *antity+ of the right item+ at
the right time.
he Difference Between Inventory Control &
Inventory Management
by Yvonne I. Wilson - Materials Manager
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+IT’S VERY EASY TO TURN CASH INTOINVENTORY , THE CHALLENGE IS TO
TURN INVENTORY INTO CASH.-
Effective Inventory Management
(EIM) Is Everyone,s es'onsibility
by Yvonne I. Wilson - Materials Manager
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BENEFITS DANGERS
'timal inventory levels
"'ecifies sie an% the of goo%s stoc&e%
/ower han%ling an% hol%ing costs
"tan%ar%iation Increase% revene
Im'rove% cash flow
E0cessive inventory means i%le fn%s
E0tra han%ling an% hol%ing costs
Ina%e*ate inventory-loss of sales+cstomers loose confi%ence+ loss of life
/ittle consi%eration for mo%erate
inflation an% seasonality
1enefits 2 3angers With Inventory Mgt.
by Yvonne I. Wilson - Materials Manager
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W$ D! Y!/ A0 C/0!e"0 E12e)3
$ro%cts available when nee%e% or 'romise%
The right *antity of the right 'ro%ct
$ro%cts %elivere% in a timely manner
$ro%cts to arrive at the %esignate% 'oint in goo%con%ition
by Yvonne I. Wilson - Materials Manager
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What $revents Yo 4rom
!chieving !n EIM"#
by Yvonne I. Wilson - Materials Manager
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5hallenges 2 Isses That Im'acts EIM"
!bsence of a 're-%etermine% or a''rove% stoc& list Gess wor&+ lea% to stoc& ots+ re*ests for new 'ro%cts w6ot
7stification
8n-reliable %ata - inventory amonts recor%e%
inaccrately eal nee% for the ty'e an% amont of s''lies often
n%erstate%6overstate%
"toc& not 'ro'erly rotate% 9 e0'ire%+ obsolete stoc&+
waste:o recor% &ee'ing system that will allow trac&ing an%
re'orting on $)/$' /0$%e of inventory Ma&es forecasting %ifficlt+ margin of error higher+ hge inventory+
high costs by Yvonne I. Wilson - Materials Manager
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5hallenges 2 Isses That Im'acts EIM"
:o strctre% or scientific a''roach to forecastingthe real nee%s
Gt feelings+ gess wor&+ an% larger than necessary
amonts for the ;rainy %ay<Hoar%ing of inventory
:on-com'liance to or%ering sche%les
Im'act on hman an% other resorces+ rgent
re*ests
by Yvonne I. Wilson - Materials Manager
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+ I F Y O U A L W A Y S D O W H A T Y O U ’ V E A L W A Y S
D O N E 4 Y O U ’ L L A L W A Y S G E T W H A T Y O U ’ V E A L W A Y S G O T . -
Where 3o Yo Go 4rom Here#
by Yvonne I. Wilson - Materials Manager
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1est $ractices 2 1asic "te's To !chieving anEIM"
!ttit%eI. Inventory accracy an% EIM mst be 'romote%
throghot the organiation as everyone,s
res'onsibility II. Team involvement 9 %eci%e what to stoc&+ why %o
yo nee% to stoc& the item+ %etermine *antity+%evelo' a''rove% stoc& list
III. Eliminate any shortct to the 'rocesses
by Yvonne I. Wilson - Materials Manager
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1est $ractice 2 1asic "te's To !chieving an EIM"
$rocess 3efinitionI. The 'rocess mst be clearly %efine% throghot the
organiation that affect inventory .
II. Get as many 'ersons involve%III. Ensre com'lete an% accrate n%erstan%ing of the
'rocess
by Yvonne I. Wilson - Materials Manager
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1est $ractice 2 1asic "te's To !chieving an EIM"
P!'*)# $n5 2"!)e5/"e 5e(*n**!n
I. 8se the %efine% 'rocesses to now %ocment the'roce%res
II. $roce%res shol% not be limite% to 7st inventoryisses
III. 5om'lete 'roce%res to incl%e *ality+ 'hysicalas'ects+ an% safety
I=. 5lear an% com'rehensive %ocment
by Yvonne I. Wilson - Materials Manager
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1est $ractice 2 1asic "te's 4or !chieving an EIM"
S$(( T"$*n*n%
I. $rovi%e training to staff on how to go abotcom'leting or%er forms+ how to calclate their
re*ire% stoc& levels an% also to go throgh the'roce%res with them.
.S$(( Te0*n%
I. This hel's in %etermining whether staff
n%erstan% things sch as the forecasting metho%san% also the 'roce%res
by Yvonne I. Wilson - Materials Manager
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1est $ractice 2 1asic "te's 4or !chieving anEIM"
Monitoring of the 'rocesses for com'liance
I. 1egin to monitor com'liance to the 'olicy an% 'roce%resimme%iately. !ctions that %o not com'ly with the written$2$ mst be a%%resse% imme%iately with the em'loyee
involve%.Trac&ing for accracy
I. !ccracy trac&ing shol% be measre% as a 'ercentage oftotal transactions
. !ccontability
I. Having s'ent time to %ocment the $2$,s+ 'rovi%e trainingan% testing+ staff mst therefore be hel% accontable
by Yvonne I. Wilson - Materials Manager
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1est $ractice 2 1asic "te's 4or !chieving an EIM"
by Yvonne I. Wilson - Materials Manager
5ont+ cont+ an% cont
I. 5ont inventory on a continos basis(cycle conting) to maintain high levels of
accracy.
.e-evalate
.eglarly reevalate+ continosim'rovement
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T$n6 #!/7
;Effective InventoryManagement iseveryone,sres'onsibility<
The En%
by Yvonne I. Wilson - Materials Manager