This service is done remotely and is overseen by owner and inventory management consultant, Jon Schreibfeder — saving you consultant travel expenses.
Send EIM an Excel® or comma-delimited text file containing the following information for each inventory item in each location (one row of data for each item/location):
- Warehouse or store number
- Item number
- Item description
- By month, 12 to 24 months of usage history
- Number of times the product was sold/transferred/used in production in each of the past 12 to 24 months (optional)
- Lead time for the item from the primary replenishment source
- Minimum reorder quantity from the supplier
- Current replacement or average cost per unit
- Sales dollars of the item during the previous 12 months (optional)
- Current on-hand quantity
Don’t worry if all of this information is not available. Simply contact EIM and we can determine what analysis can be performed with the data you do have available.
EIM schedules a conference call to review the analysis of your current inventory utilizing the data you provided and our EIM-designed Excel® spreadsheets. This analysis includes:
- Identification of possible dead stock and excess inventory.
- Identification of products that might should be stocked in each location.
- Review of usage history including possible unusual activity.
- Review of your future demand forecast accuracy.
- Determination of the most accurate forecasting method (based on your historical usage) for each item from EIM’s library of forecast formulas.
- Determination the best method to incorporate market conditions and collaborative information from customers and salespeople into the forecast.
- Suggestion for each item’s replenishment parameters.
- Suggestion for each item’s replenishment source (i.e., vendor or transfer from another company location).
- Preparation of a special spreadsheet to upload the calculated replenishment parameters into your current computer system.
- Review of current versus target inventory investment and turnover.
- Review of inventory ranking (i.e., identify the products that contribute most to your success).
- Suggestion of primary storage location quantity for each product.
- Review of maximum and average product quantity that needs to be stocked in a surplus storage location.
EIM provides complete documentation and step-by-step instructions so you can produce this type of analysis at any time in the future with updated inventory and sales data.
EIM’s analysis provided for a particular company is dependent on factors such as:
- Market conditions
- Number of stocking locations (i.e., warehouses or branches)
- Number of products stocked in each location
- Profitability objectives
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