Context Setting

Regardless of the size of the company, having a proper inventory management system is of prime importance for any business. Inventory counts are an important check and balance that ensures records are accurate. But without the right tools in place, they are often time consuming, expensive and labour intensive. DSO (Days outstanding) with customers at 90 days and DPO (Days paid out to suppliers) at 45 days results in cash flow difficulty. Manufacturers are compelled to undergo strict cost cutting methodologies to boost their EBITA (Earnings Before Interest Tax and Amortisation). Controlling cost through inventory management, OSMI (Obsolete Slow-Moving Inventory) is critical to avoid loss in financial statement and smooth cash flow cycle. 

This workshop has been designed with special focus on controlling inventory throughout the product cycle from order processing to cash using appropriate tools and techniques.

Objective

• To understand the concepts, tools and techniques in Inventory management
• To align inventory levels as per Inventory turnover ratio (ITO) /Days on hand (DOH) set in business metrics
• Methods to arrive at Safety stock and reorder point
• To understand the role of forecasting, sales and operations towards inventory management
• Key stages of Inventory management process
• Inventory management techniques and its application
• Importance of vendor selection and development process
• Fundamental inventory management formula
• Understanding set theory to optimize Inventory Turnover ratio (ITO) and safety stock and how it helps to improve Cost of goods sold (COGS).
• 8W -Waste elimination and inventory management.

Key Takeaways

• Prevention of dead stock
• Optimization of storage cost
• Reduction of purchase cost of goods
• Enhance cash flow
• Maintain sufficient stock
• Costing break-up and its impact in the P&L statement

Participation Fees

Who Should Attend / Target Audience

Coordinator