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...
