by Jon Schreibfeder | Feb 1, 2012 | Purchasing
About this time last year I worked with two large distributors that allow their individual branches to completely control the replenishment of the products they stock. Each location’s management, buyers, and/or salespeople could replenish stock whenever they...
by Jon Schreibfeder | Dec 1, 2011 | Physical Inventory – Cycle Counting
In order to receive all of the benefits from a good inventory management system, stock balances must be at least 97% accurate, every day of the year. This means that the actual available quantity of every item in the warehouse is no more than 3% greater or less than...
by Jon Schreibfeder | Oct 1, 2011 | Replenishment Parameters
For many organizations, 50% or more of their stocked inventory items have sporadic usage – that is, they are not sold or used on a regular basis. In previous articles, we have discussed how typical demand forecast techniques that predict the quantity of the product...
by Jon Schreibfeder | Jun 3, 2011 | Vendor Managed Inventory
This article is the third and final article on achieving success with vendor-managed inventory (VMI). In the first article we discussed the advantages and disadvantages of having a vendor manage replenishment of the products it supplies to a customer. Last month we...
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...
