imafs Inventory stock forecasting supply chain » inventory level http://www.imafs.com Inventory stock forecasting supply chain Thu, 08 Dec 2011 13:58:26 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 5 things to think about when reducing inventory http://www.imafs.com/blog/5-things-to-think-about-when-reducing-inventory/ http://www.imafs.com/blog/5-things-to-think-about-when-reducing-inventory/#comments Tue, 12 Oct 2010 18:38:18 +0000 admin http://www.imafs.com/?p=602 1.Less art, More science

Generally, organizations are applying a very simplistic approach using rules of thumbs to a very complex problem. We believe that simultaneously improving service levels and inventory requires a multi-dimensional approach across the supply network. It is our belief that inventory management is governed by the laws of probability and statistics. Success is just a matter of putting them to use.

2.Integration

Fixing supply chain problems is challenging,  especially in the high complexity retail environment.  It requires advanced skills and new ways of managing across the supply network as well as the need to integrate across multiple supply chains per business unit in a global footprint

3.Execution

Inventory buildup also has an operational dimension – reducing execution cycle times and flexibility and supplier lead times will have a big impact on the inventory level.

4.Right product. Right place. Right time. Right cost

Inventory buildup and low service level performance are often a result of insufficient planning or planning tools; demand forecasting, SKU assortment management, supply and production planning/collaboration, inventory/replenishment planning and warehousing.  All are elements of a planning chain that requires integration.

5.Knowledge equal savings

Cost cutting and availability of products remain the primary goals. The key to achieving results involves developing systematic and collaborative approach that go far beyond simple bidding and price evaluations.

Benoit Ouellette

]]> http://www.imafs.com/blog/5-things-to-think-about-when-reducing-inventory/feed/ 0 Inventory management and health http://www.imafs.com/blog/inventory-management-and-health/ http://www.imafs.com/blog/inventory-management-and-health/#comments Tue, 29 Jun 2010 20:17:40 +0000 admin http://www.imafs.com/?p=534 AQLASS conference held last week brought together Supply Chain professionals from Quebec’s health care sector. The challenges of inventory management are important. Most managers have few tools to manage the services offered to the users based on the availability of their inventory. Supply chain leaders must manually review the Min and Max for thousands of items to prevent shortages and provide excellent service. Obviously, this is accomplished with much higher inventory levels than necessary. Nevertheless, they still face shortages. The ABC classification of their items is not frequently used.  Few tools are used to manage the delivery lead time. There is no forecasting tool to predict future needs. Communication with health-care units to determine what should be kept in inventory is still the only form of forecasting. However, there are ways to automating and optimizing the inventory management. Health care institutions in the United States have an edge over in this field. It was significant to see more than 300 Supply Chain professionals of the health care sector meet and, among other things, discuss how they could improve inventory management in our institutions. There is money to save, but more importantly, the institutions are seeking greater control of their service levels and on the availability of the medical supplies. We were proud to be invited and participate at this major event and which will undoubtedly have positive repercussions for the Quebec’s health institutions. Robert Lamarre]]> The AQLASS conference held last week brought together Supply Chain professionals from Quebec’s health care sector. The challenges of inventory management are important. Most managers have few tools to manage the services offered to the users based on the availability of their inventory. Supply chain leaders must manually review the Min and Max for thousands of items to prevent shortages and provide excellent service. Obviously, this is accomplished with much higher inventory levels than necessary. Nevertheless, they still face shortages.

The ABC classification of their items is not frequently used.  Few tools are used to manage the delivery lead time.

There is no forecasting tool to predict future needs.

Communication with health-care units to determine what should be kept in inventory is still the only form of forecasting. However, there are ways to automating and optimizing the inventory management. Health care institutions in the United States have an edge over in this field.

It was significant to see more than 300 Supply Chain professionals of the health care sector meet and, among other things, discuss how they could improve inventory management in our institutions. There is money to save, but more importantly, the institutions are seeking greater control of their service levels and on the availability of the medical supplies.

We were proud to be invited and participate at this major event and which will undoubtedly have positive repercussions for the Quebec’s health institutions.

Robert Lamarre

]]> http://www.imafs.com/blog/inventory-management-and-health/feed/ 0 Inventory optimization and customer service (part 2) http://www.imafs.com/blog/inventory-optimization-and-customer-service-part-2/ http://www.imafs.com/blog/inventory-optimization-and-customer-service-part-2/#comments Mon, 21 Jun 2010 19:19:25 +0000 admin http://www.imafs.com/?p=521 Among key indicators of a company’s dashboard, the higher management must determine its customer service objectives by class and/or by family of products.  These service objectives are part and parcel of the strategic data that sets your business apart.

Service wise, these objectives will take into account customer needs and the market positioning desired by the company in terms of service as well as its capacity to invest in its inventory to reach its goals.

It must be noted that the higher the service objectives are, the more the inventory level must be increased to guarantee the level of service.  The proper software can assist the company in linking its service objectives with the inventory required.

A trustworthy computer system dealing in inventory management should compute efficiently the parameters of inventory management in relation to the service objectives.  A good system will establish the level of buffer stock required in relation to the optimal service desired by the company.  The buffer stock should normally also take into account delivery schedules as well as the forecast of the demand or demand variability.

To achieve a sustainable level of service, it is imperative to establish variables such as the minimums and maximums on hand that will not only be dynamic but also correlate with the desired service goals.

Interestingly, there are companies today that offer services that provide dynamic calculations of the parameters of inventory management that consist in updating the Min Max according to the service objectives sought by way of dashboards, via the WEB, through a set of indicators that follow the evolution of inventory management.  The IMAFS system also offers exception reports on a pay-as-you-go basis for inventory management.  It is undeniable that an inventory management system will increase a company’s profitability, thus guaranteeing a return on its investment.

In conclusion, we have a better understanding of how inventory management and optimization of customer service go hand in hand.

Robert Lamarre

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