Six-Phase Methodology for Inventory Management PPT
This PPT slide, part of the 28-slide Working Capital Management: Inventory Management PowerPoint presentation, outlines a structured six-phase methodology for effective inventory management. It begins with Data-Driven Inventory Analysis, emphasizing the need to evaluate current inventory levels and identify slow-moving or excess stock. The use of analytics for real-time monitoring is highlighted, alongside the integration of inventory management software and the establishment of baseline metrics for improvement.
The second phase, Optimization Planning, focuses on aligning inventory with demand forecasts. Collaboration with sales and operations is crucial here, as is the implementation of advanced forecasting tools. Setting inventory turnover targets and developing action plans for inventory reduction are also key components.
Moving to the third phase, Just-in-Time (JIT) Inventory Implementation, the slide stresses the importance of synchronizing inventory levels with actual sales. This involves reducing lead times with suppliers and minimizing stockholding costs. Enhancing responsiveness to demand changes is also mentioned, indicating a need for agility in inventory practices.
The fourth phase, Effective Supplier Negotiations, highlights strategies for securing favorable payment terms and long-term agreements with suppliers. Reviewing and adjusting supplier contracts, along with monitoring supplier performance, ensures quality and reliability in the supply chain.
Inventory Turnover Optimization, the fifth phase, involves calculating turnover ratios and setting targets. It emphasizes the need for effective stock rotation policies and optimizing replenishment strategies, while also enhancing demand planning.
Finally, the sixth phase, Continuous Monitoring and Improvement, focuses on tracking inventory levels in real-time and conducting regular performance reviews. Identifying inefficiencies and fostering a culture of continuous improvement are essential for maintaining optimal inventory management practices.
This slide is part of the Working Capital Management: Inventory Management PowerPoint presentation.
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Inventory Management Supply Chain Continuous Improvement Supplier Negotiations Sales Analytics
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