by Jon Schreibfeder | Feb 15, 2019 | Stocking Decisions, Warehousing
Organizations with multiple stores or warehouses must assign an authorized replenishment path or “ARP” to every product stocked in each location. The ARP specifies the primary source of replenishment for each item on that branch’s approved stock list: Is it purchased...
by Jon Schreibfeder | Jan 15, 2019 | Best Practices, Stocking Decisions, Warehousing
In deciding what products to stock, remember the goal of effective inventory management: “Effective inventory management enables an organization to meet or exceed customers’ expectations of product availability with the amount of each item that will maximize net...
by Jon Schreibfeder | Mar 15, 2018 | Stocking Decisions
Last month we began a discussion of ranking your inventory using three different criteria: Frequency of sale or use (i.e. the number of times the product is requested regardless of the actual quantity requested) Profitability (i.e., annual gross profit dollars)...
by Jon Schreibfeder | Feb 15, 2018 | Stocking Decisions
When I talk to a client, they often refer to their “A” items. That is, those items that are most important to have available for immediate delivery or use. When I ask them how they identify “A” items, the most common response is total cost of goods sold recorded over...
by Jon Schreibfeder | Dec 15, 2017 | Stocking Decisions
I worked with a distributor last week that had over 100 locations selling directly to end users. Despite the fact that over 35% of the distributor’s inventory (based on value) was in excess of a one-year supply and that most locations were experiencing frequent stock...
by Jon Schreibfeder | Nov 15, 2017 | Stocking Decisions
Last month, we discussed safety stock as a necessary cost of doing business. It is required to help you prevent stockouts. But this insurance is expensive. We don’t want to provide a specific item with more safety stock than it needs. The deviation method of...
