by Jon Schreibfeder | Jun 2, 2011 | Vendor Managed Inventory
Last month, we began our discussion of vendor-managed inventory (VMI) programs listing possible advantages and disadvantages these programs present for both customers and suppliers. We also presented some advice for determining which products should be included in a...
by Jon Schreibfeder | Jun 1, 2011 | Vendor Managed Inventory
Today, many firms are trying to concentrate on the “core competences.” They want to outsource minor tasks and activities when it is cost effective to do so. For a distributor, an example of one of these tasks is the replenishment of less-expensive...
by Jon Schreibfeder | Apr 1, 2011 | Purchasing
Occasionally a supplier will provide you with an “incentive” for paying an invoice before its due date. These are often referred to as “terms discounts.” A common terms discount is “2% 10 Days Net 30 Days.” This means that while the...
by Jon Schreibfeder | Jan 10, 2011 | Replenishment Parameters
A few months ago, in an article entitled “The Mysterious Cost of Carrying Inventory,” we published a questionnaire that you can fill out, return to us, and have us calculate your specific company’s inventory carrying cost percentage – that is, what...
by Jon Schreibfeder | Jan 10, 2011 | Replenishment Parameters
The carrying cost of inventory is the cost of maintaining your average inventory investment of inventory in your warehouse, storeroom, stockroom, or other location where you stock raw materials or finished goods. What costs do you incur in carrying inventory? Cost of...
by Jon Schreibfeder | Nov 5, 2010 | Forecasting
When you hear the term “business to business (B2B) E-commerce” what comes to mind? Buyers looking through online catalogs and placing orders for needed products? Companies sending purchase orders via EDI (electronic data interchange) that are automatically...
by Jon Schreibfeder | Jul 1, 2010 | Analysis
How hard is the money you have invested working for you? You’ve probably been asked that question several times by stock brokers or “investment counselors.” No, I’m not going to try to sell you mutual funds. This article isn’t about how you are managing...
by Jon Schreibfeder | May 1, 2010 | Stocking Decisions
Today, most companies that distribute products are adding more new products to inventory than every before. Not only do these new items allow distributors to meet their customers changing needs, they also present the opportunity to penetrate new markets. Adding new...
by Jon Schreibfeder | May 1, 2006 | Analysis
Your warehouse is probably filled with repair parts for the equipment you’ve sold. What profit do you make when you sell a part? Well, if you ask a salesman he may say, “That’s easy, we average a 25% gross margin on all of the parts we sell!” But does your...
by Jon Schreibfeder | Apr 1, 2006 | Vendor Managed Inventory
A customer agrees to give you all of his business. All you have to do is maintain an adequate inventory of the products he uses at his facility. What a deal!!!! Large, frequent orders from a customer. No one “nickel and diming” you to death. Wouldn’t any...
