TASK:

What quantity of goods is appropriate from the point of view of the customer’s needs, how to guarantee a right quantity of goods for sale? How will this quantity be reflected in operating costs – obtaining and maintaining the inventory.? How does the product life cycle impact the way of the goods management? How to design an efficient system of goods suplementation in the central warehouse and in the stores?

AREAS OF ANALYSIS:

The range structure according to the categories and the product life cycle
The optimum amount of SKU
The timetable and the algorithm of the forecast orders and reorders
The suppliers wallet
The costs of inventory obtaining
The costs of inventory maintaining
The costs of inventory depletion
Transparency and measurability of the supply chain

SOLUTIONS/BENEFITS:

The categorization of the inventory, enabling the efficient stock management.
The overall package of procedures organizing the forecasting, ordering and suplemening process along with the algorithm of the goods suplementation.
The necessary reports together with the paremeters (KPI) specific for a given organization and vital from the point of view of stock management.

Do you know that…?

According to S.G.Timme the costs of the inventory maintaining are estimated at around 15-35% of its value. If we assume that the avarage share of the inventory within the income equals to 20%, the avarage annual cost of inventory equals to 3 to 7%. And we know that net profit rarely exceeds 10%.