by Jon Schreibfeder | Jul 15, 2013 | Analysis
In previous newsletter articles we have discussed the customer service level. This is a measurement of the number of line items on sales orders shipped complete in one shipment on or before the date the material was promised to the customer. The customer service...
by Jon Schreibfeder | May 15, 2013 | Forecasting
Most computer systems provide buyers with out of stock reports. These are listings of stocked products with no available inventory. Because of the stockout, sales orders cannot be filled and salespeople cannot provide the service their customers expect. Buyers must...
by Jon Schreibfeder | Mar 15, 2013 | Analysis
The phenomenon of “inventory creep”: a constant increase in inventory without a corresponding increase in sales. Management is often puzzled when this occurs, despite having implemented an expensive, state of the art inventory management system. The most common...
by Jon Schreibfeder | Mar 15, 2013 | Forecasting
Most computer ERP (enterprise resource planning) software packages replenish inventory with minimum and maximum quantities or reorder points and reorder quantities. The forecast, a prediction of what you are going to sell or use in the future, is an integral element...
by Jon Schreibfeder | Feb 15, 2013 | Analysis
I received an email from a customer this week asking how to handle a salesperson’s request to stock a product. This would be the only product this new customer would buy: Anticipated Annual Sales $1,888 Annual Cost of Goods Sold $1,411...
by Jon Schreibfeder | Jan 15, 2013 | Purchasing
One of our clients is continually overstocked. Management is frustrated that they are not achieving their return on investment goals. They couldn’t understand why, after working hard to establish replenishment parameters that would optimize their inventory...
by Jon Schreibfeder | Nov 14, 2012 | Physical Inventory – Cycle Counting
I recently visited the distribution center of a large national hard goods distributor. This company is experiencing a significant problem with excess inventory in both their distribution center and their 100 store locations. We have to eliminate this excess...
by Jon Schreibfeder | Nov 12, 2012 | Replenishment Parameters
I was reviewing replenishment parameters for several inventory items with a client this week. We ran across an item where a buyer had established a minimum stock level of 10 pieces and a maximum stock level of sixty pieces. The item is typically sold 10 pieces at...
by Jon Schreibfeder | Oct 15, 2012 | General
Last week management at JC Penny stated that within the near future RFID (radio frequency identification) bar code labels will be attached to all of their merchandise in all of their stores. These “intelligent” labels will allow a store to track the exact location of...
by Jon Schreibfeder | Sep 19, 2012 | Analysis
Competition is greater today than ever before. It is critical that every business knows how well it is meeting its customers’ needs, identifying deficiencies, and putting into place improved practices and procedures. In previous newsletters we have discussed the...
