What Should Your Buyers Be Doing – Part 1

Published on: November 15, 2016

It is amazing how many organizations are filled with reactive buyers.  They spend their days going from crisis to crisis.  Often these “emergencies” involve issuing or expediting a purchase order for a product that should have been on the shelf and available for immediate use or delivery.  It is unfortunate that crisis management is often […]

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Salespeople Should Tell You What They Will Sell, Not What You Should Stock!

Published on: October 15, 2016

How often does a salesperson tell you that a customer wants you to stock a certain product?  They probably will dictate the number of pieces of the item that should be kept in inventory.  You buy the product, place it on the shelf, and forget about it.  Twelve months later you discover most, if not […]

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Collaborative Forecasting, Part I

Published on: July 15, 2016

Most computer systems forecast future demand of products based on past usage history.  These systems assume that what you sold or used in the past is a good indication of what you will sell or use in the future.  But this isn’t always true.  For example:   Products may increase or decrease in popularity over […]

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How Often Should You Order from a Vendor?

Published on: April 15, 2016

This month we will begin to examine the last of the parameters used to determine when to reorder a product, the order cycle (also known as the review cycle). The order cycle is the normal time between issuing replenishment orders with a supplier that meet that vendor’s target order requirement. The target order requirement is […]

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How Do You Know if Your Computer Is Set Up Correctly Part IV (A Better Way to Calculate Safety Stock)

Published on: February 15, 2016

Last month we began our discussion of safety stock. Safety stock is “insurance” inventory you maintain for a product to prevent stockouts due to unexpected demand or delays in receiving a replenishment shipment. Most systems calculate safety stock quantities based on a number of day’s supply or a percentage of anticipated lead time usage. These […]

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If You’re Too Lean, You’re Anorexic!

Published on: February 15, 2015

“Lean” is a popular word in commerce today. There are a lot of books, articles and seminars that will tell you how to get the “fat” out of your business. Last week I read an article that advised every distributor and manufacturer to practice “just in time” (JIT) inventory management. That is, you should strive […]

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Calculate Order Cycles for Key Vendors

Published on: September 15, 2014

To avoid a possible stockout, a product should be ordered as soon as its replenishment position or net available quantity (i.e., On-Hand – Committed on Current Customer Orders + Current Replenishment Orders) falls down to its reorder point or minimum stock quantity. That is, a quantity sufficient to meet customer demand during the lead time […]

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Common Sense is Not Statistically Valid

Published on: February 15, 2014

Our clients utilize a wide variety of enterprise resource planning (ERP) computer software packages.  Most have the potential to maximize the productivity and profitability of an organization’s investment in stock inventory.  But occasionally we run into a road block.  A software designer will ignore common sense to ensure “statistical integrity”.  I recently experienced two of […]

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Turn Your Dead Stock and Excess Inventory Into Assets – Part II – Cont’d

Published on: December 15, 2013

For the past few months we have been discussing how to identify and dispose of your dead stock and excess inventory.  This month we discuss how you can use the internet to help you turn your unwanted material into cash. There are several reasons why you should utilize the internet when liquidating unwanted material:  You […]

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Turn Your Dead Stock and Excess Inventory into Assets – Part II

Published on: November 15, 2013

Last month we started our discussion of disposing of dead stock and excess inventory.  The first step was to identify this unneeded stock.  This month we will discuss the actual liquidation process.  What can you do with this stuff?  Consider these options: Transfer the excess stock to another company location where the inventory is needed.  […]

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