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...
by Jon Schreibfeder | Sep 19, 2012 | Analysis
Last month we looked at how to calculate inventory turnover. Many companies view inventory turnover as their primary measurement of inventory performance. But should turnover be the only inventory metric analyzed on a regular basis? If a company enjoys high gross...
by Jon Schreibfeder | Sep 19, 2012 | Purchasing
In today’s economy we see many companies emphasizing “cash flow management” over profitability. That is, they are willing to sacrifice some profit dollars in order to invest smaller amounts in inventory. If you find yourself in this situation, I have...
by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
Safety stock provides protection against stock outs due to unexpected demand for a product or delays in receiving a replenishment shipment from a supplier. It is insurance – and like other types of insurance, it is an expense of doing business. Like many other types...
by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
Over the next few months, we will discuss setting meaningful replenishment parameters. Today’s article deals with the importance of setting accurate anticipated lead times. The anticipated lead time is the amount of time (usually expressed in days) we estimate...
by Jon Schreibfeder | Sep 19, 2012 | Stocking Decisions
Last month we discussed the first step in the 12-Step Program to Achieve Effective Inventory Management, ensuring that all material movement is properly recorded. Now we are ready to move onto step #2, developing an approved stock list for each of your stores or...
by Jon Schreibfeder | Sep 19, 2012 | General
A participant in one of our October workshops was frustrated. “Management wants me to reduce inventory by 25% and I have no idea how to do it.” I asked how they came up with this figure and he responded, “I don’t know.” Without direction...
by Jon Schreibfeder | Sep 19, 2012 | Replenishment Parameters
I received a call from a customer this week saying that the minimum quantities in his computer system were far too high. Joe explained, “We normally sell four pieces of product #A100 per month. The computer system has a minimum quantity set at eight pieces. If...
