Inventory Analysis Services

Inventory Analysis Services

Join more than 3,000 distributors, manufacturers, and retailers who have benefited from our detailed “dissection” and analysis of your current inventory situation.

This service is provided remotely by inventory management consultants Jon and Matt Schreibfeder – saving you consultant travel expenses.

A Comprehensive Analysis of Your Current Inventory Management Situation.

This is a web-based, comprehensive data analysis of your current inventory situation.

You send EIM an Excel® or 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
  • Current on-hand quantity
  • Bills of Material (for manufacturers, assemblers and service centers)

With this data we will perform an analysis of your current inventory utilizing Excel® spreadsheets that are customized to address your specific situation and challenges.  In developing this analysis, we will:

  • Identify possible dead stock and excess inventory
  • Identify the products that probably should be stocked in each location.
  • Highlight possible unusual activity in your sales or usage history.
  • Determine the accuracy of your forecasts of future demand of products.
  • From EIM’s library of forecast formulas, select the most accurate forecasting method (based on historical usage) for each item.
  • Determine the best way to incorporate and evaluate market conditions and collaborative information from customers and salespeople into the forecast.
  • Suggested replenishment parameters for each item.
  • Calculate safety stock quantities required to achieve a certain level of service.
  • Include a customized spreadsheet that can be utilized to upload the calculated replenishment parameters into your current computer software.
  • Suggest a normal replenishment source for each item (i.e. vendor or transfer from another company location).
  • Help determine the “best” vendors to work negotiate optimal terms.
  • Evaluate special vendor offers and situations such as buying before an anticipated price increase.
  • Compare your current versus potential inventory investment and turnover.
  • Project purchases and budgeted inventory amounts for each of the upcoming 12 months
  • Provide inventory ranking by activity, profitability and cost of goods sold.
  • Suggested quantity of each product to be stored in a primary storage location.
  • Determine the maximum and average on-hand quantity of each product that would need to be stocked in a surplus storage location.

If all this information is not available, don’t worry.  Just contact EIM and we can determine what analysis we can perform with the data you have available. 

Complete documentation is provided as well as step-by-step instructions that allow you to produce the same analysis as often as you like in the future with updated inventory and sales data.

The actual analysis provided for a particular organization is dependent on factors such as:

  • Industry
  • Market Conditions
  • Number of Stocking Locations (i.e. warehouses or branches)
  • Number of Products Stocked in Each Location
  • Profitability Objectives