Inventory Management and Procurement Strategies Training Course

Participants can assess inventory data quality and specify essential item-master controls.

• Item-master fields supporting planning, purchasing, storage and financial valuation
• Units of measure conversion controls for purchasing and warehouse transactions
• Negative inventory, duplicate items and inactive codes investigation methods
• Inventory record accuracy calculation using book-to-physical count comparisons
• Root causes of transaction errors at receipt, issue and transfer
• Data governance roles for item creation, amendment and retirement

Participants can interpret demand history and select appropriate forecast inputs for inventory decisions.

• Demand history cleansing for returns, promotions, outages and exceptional orders
• Trend, seasonality and intermittency identification from item-level demand records
• Moving averages and exponential smoothing for stable demand patterns
• Forecast bias and mean absolute deviation monitoring methods
• Sales, operations and finance inputs to consensus demand planning
• Forecast horizons aligned with supplier lead times and review cycles

Participants can segment inventory and assign differentiated control methods to each class.

• ABC analysis based on annual usage value and cumulative percentages
• XYZ analysis using demand variability and forecastability measures
• ABC-XYZ matrix linking item profiles to control intensity
• A-items assigned tighter review, approval and cycle-count frequencies
• C-items managed through simplified ordering and low-touch replenishment rules
• Exception lists prioritising high-value, volatile and critical inventory items

Participants can define inventory policies that balance availability targets, cost and risk.

• Cycle stock, safety stock, pipeline stock and anticipatory stock definitions
• Service-level measures: cycle service level, fill rate and OTIF
• Inventory policy statements covering ownership, review frequency and escalation
• Criticality assessment for safety, regulatory and service continuity items
• Target service levels differentiated by customer promise and item class
• Policy exceptions authorised for strategic, seasonal and project inventory

Participants can calculate order quantities and assess when EOQ assumptions require adjustment.

• EOQ calculation using annual demand, ordering cost and holding cost
• Relevant ordering costs including administration, receiving and invoice processing
• Holding cost components: capital, storage, insurance, shrinkage and obsolescence
• Quantity discount evaluation using total annual cost comparisons
• Minimum order quantities assessed against demand, space and expiry constraints
• Order quantity rules for low-value, high-volume consumable items

Participants can set reorder points and safety stock using demand and lead-time information.

• Reorder point calculation from average demand during replenishment lead time
• Safety stock determined from demand variation and desired service levels
• Lead-time components: ordering, supplier processing, transit, receipt and put-away
• Variable lead time incorporated into replenishment parameter calculations
• Reviewing reorder parameters after demand, supplier or process changes
• Expediting thresholds and escalation rules for imminent stockout risks

Participants can apply periodic-review controls where continuous replenishment is impractical.

• Periodic review systems for dispersed, low-value and supplier-managed items
• Order-up-to level calculated for review period plus lead time
• Review frequency selected from demand, transaction cost and risk
• Min-max settings compared with fixed-order quantity replenishment approaches
• Kanban cards and two-bin systems for repetitive point-of-use consumption
• Visual replenishment controls matched to stable, predictable demand items

Participants can identify MRP inputs and distinguish dependent-demand planning from replenishment control.

• Dependent demand derived from bills of materials and production schedules
• MRP inputs: master schedule, inventory records and bills of materials
• Lot-sizing rules: lot-for-lot, fixed quantity and period order quantity
• Time-phased requirements revealing planned receipts and planned order releases
• BOM accuracy and engineering change control effects on material availability
• Planning fences and frozen schedules protecting supplier and production commitments

Participants can assess warehouse controls that protect inventory availability, quality and productivity.

• Slotting decisions based on velocity, dimensions, handling and compatibility
• FIFO, FEFO and batch control for perishable or regulated inventory
• Receiving inspections separating accepted, quarantined and rejected stock
• Put-away rules preventing misplaced stock and location capacity conflicts
• Pick-path design reducing travel time and selection errors
• Segregation controls for hazardous, controlled, damaged and return inventory

Participants can design a cycle-count programme and investigate inventory discrepancies.

• Cycle-count frequency determined by ABC class, criticality and transaction volume
• Blind counts separating physical verification from system quantity visibility
• Count tolerances established by value, unit measure and item risk
• Variance investigation tracing errors through receipts, issues and adjustments
• Root-cause coding for shrinkage, damage, mispicks and process failures
• Annual stocktake planning with cut-off controls and independent verification

Participants can identify inventory risk and prepare disposition actions for non-moving stock.

• Aging analysis separating slow-moving, dormant, obsolete and excess stock
• Obsolescence triggers from engineering changes, demand loss and shelf-life expiry
• Disposition options: redeployment, return, resale, repair, donation and disposal
• Inventory reserves and write-down considerations for financial reporting discussions
• Last-time-buy decisions balancing discontinuation risk against carrying cost
• Non-moving stock review boards with accountable action owners and dates

Participants can develop category strategies that support differentiated inventory requirements.

• Kraljic matrix positioning categories by profit impact and supply risk
• Category profiles covering demand, suppliers, specifications and supply constraints
• Strategic, bottleneck, leverage and routine category response strategies
• Sourcing options: single source, dual source, framework and spot buying
• Make-buy analysis incorporating capability, cost, risk and capacity factors
• Procurement strategy aligned with inventory policy and service requirements

Participants can evaluate supplier options using total cost, risk and performance criteria.

• Total cost of ownership beyond purchase price and freight charges
• Supplier evaluation criteria for quality, capacity, financial health and compliance
• Weighted scorecards comparing supplier proposals against agreed requirements
• Cost breakdown analysis identifying material, labour, overhead and margin drivers
• Should-cost thinking for challengeable specifications and supplier quotations
• Award recommendations documenting trade-offs, assumptions and approval requirements

Participants can measure supplier reliability and use performance data to reduce inventory risk.

• OTIF measurement using confirmed dates, quantities and accepted deliveries
• Lead-time adherence tracked against purchase order and supplier acknowledgement dates
• Supplier scorecards combining delivery, quality, responsiveness and commercial measures
• Corrective action requests structured around containment, cause and prevention
• Supplier review meetings focused on trends, commitments and escalation actions
• Collaborative forecasting and schedule sharing to improve supplier readiness

Participants can identify contractual mechanisms that influence inventory ownership and supply continuity.

• Incoterms 2020 allocation of transport costs, risk and delivery responsibilities
• Framework agreements establishing pricing, call-off rules and service commitments
• Consignment stock arrangements separating physical custody from inventory ownership
• Vendor-managed inventory roles, replenishment triggers and data-sharing requirements
• Service-level agreements defining lead times, fill rates and remedies
• Force majeure, allocation and continuity clauses affecting supply risk

Participants can assess supply and inventory risks and define proportionate mitigation actions.

• Risk register linking probability, impact, controls, owners and review dates
• Supply disruption scenarios covering supplier failure, transport delay and demand surge
• Critical-item mapping using lead time, substitutability and operational consequence
• Buffer stock decisions tested against disruption duration and cash constraints
• Dual sourcing qualification requirements for quality-sensitive and regulated materials
• Business continuity triggers activating allocation, substitution and emergency sourcing

Participants can design performance reporting that connects inventory controls with business results.

• Inventory turnover calculated from cost of goods sold and average inventory
• Days inventory outstanding interpreted alongside service, demand and margin changes
• Stock availability, fill rate and backorder measures for customer service
• Inventory accuracy, adjustment value and count completion governance metrics
• Excess and obsolete inventory tracked against approved reduction targets
• Monthly performance packs assigning actions, owners, deadlines and escalation routes

Participants can specify controls for inventory parameters within ERP and warehouse systems.

• ERP planning parameters: lead time, safety stock, reorder point and lot size
• Parameter-change approval workflows preventing uncontrolled replenishment settings
• Barcode scanning controls for receipt, movement, picking and count transactions
• Warehouse management system location discipline and real-time stock visibility
• Exception dashboards highlighting shortages, overdue orders and excess stock
• Master-data audits checking parameter completeness, ownership and review frequency

Participants can build, review and present a complete inventory and procurement improvement plan for a defined portfolio.

• Portfolio scope defined by products, locations, suppliers and service commitments
• ABC-XYZ segmentation translated into documented inventory control policies
• Replenishment parameters calculated from demand, variability and lead-time assumptions
• Supplier strategy aligned with category risk, performance and contract mechanisms
• Warehouse accuracy controls, cycle counts and disposition actions incorporated
• KPI dashboard, implementation milestones, owners and benefits tracking presented