One Product Ranking is Not Enough

When I talk to a client, they often refer to their “A” items. That is, those items that are most important to have available for immediate delivery or use. When I ask them how they identify “A” items, the most common response is total cost of goods sold recorded over...

New Year Inventory Resolutions

It’s 2018. Make this the year your organization achieves the goal of effective inventory management. That is, to meet or exceed your customers’ expectations of product availability with the amount of each stocked item that will maximize your organization’s...

Should Branch Managers Replenish Stock?

I worked with a distributor last week that had over 100 locations selling directly to end users. Despite the fact that over 35% of the distributor’s inventory (based on value) was in excess of a one-year supply and that most locations were experiencing frequent stock...

Base Your Purchasing Decisions on a Landed Cost

A vendor’s quoted price of an item is commonly referred to as the “replacement cost”.  Many organizations make the mistake of basing their purchasing decisions and profitability analysis on this amount.  But, in many cases, other costs are incurred when buying a...