The Effective Inventory
Management Seminar

It's tough to be in business:

• Technology has allowed other distributors to expand and increase their market areas. The result: You face more competition than ever! This competition has created more pressure on your company to consistently have the products your customers want, when and where they want them.

• Increased competition has also put pressures on profit margins. You probably have to offer lower prices in order to retain current business and attract new customers.

• The number of new products introduced to the market continues to increase at a rapid rate. You have to invest in more products with your limited capital. Your inventory and your people have to work as efficiently and effectively as possible.

Take control of what is probably your largest asset. Learn how to effectively manage your inventory and increase your company's productivity and profitability. This comprehensive two-day basic-level workshop thoroughly explains the concepts and strategies of 21st century distribution inventory control and management. You'll also receive the step-by-step instructions necessary to develop and maintain an effective inventory management program for your company.

8:30am – 8:45am: Introduction

8:45am – 10:00am: Elements of Effective Inventory Management

Successful inventory management is the result of:

• Business policies which promote sound inventory management
• The right computer hardware and software
• The knowledge necessary to effectively use the system

In this session, we will look at the first element that leads to success, business polices which promote effective inventory management. Topics include:

• Making sure every employee is aware of the cost of poor inventory management decisions
• Motivating employees to act in your company's best interest
• Protecting your company against theft
• Separating the stuff from your good stock material
• Establishing an approved list of stocked products
• Qualifications for essential replenishment and warehousing positions
• Policies and procedures for ensuring that all material-related transactions are completed in a timely fashion

10:00am – 10:15am: Break

10:15am – 12:00pm: Effectively Controlling the Material in Your Warehouse

• Physical plant design
• Material-handling procedures and equipment
• Delivery methods and equipment
• Warehousing techniques
• Product flow considerations
• Location code schemes

12:00pm – 1:00pm: Lunch

1:00pm – 5:00pm: Warehouse Operating Procedures

• Full physical inventories
• Cycle counting
• Count auditing techniques
• Correcting your procedures as well as the count
• Restocking techniques
• Handling damaged goods and returns
• Handling special orders and orders on hold
• On-hand, available, and shelf-stock quantities
• Processing the various types of sales transactions

(3:00pm – 3:15pm: Break)

• Bar code basics
• Benefits and roadblocks of bar code technology
  • Delivery expense benefits
  • Human resource benefits
  • Future benefits
  • Accuracy and quality benefits
  • Roadblocks within your company
  • Roadblocks outside of your company
• Hardware and software
  • Scanners
  • Printers
  • Labels

8:30am – 11:00am: When to Order a Product

Many distributors suffer stock-outs of popular products because replenishment orders of these items aren't issued at the right time. In this session we will discuss when to order stock products. Emphasis will be placed on which characteristics of a product must be considered in making this decision. Topics will include:

• The difference between managing raw materials/components and finished goods inventory
  • Dependent demand and the advantages/disadvantages of "back flushing"
  • Independent demand
• Estimating future usage of a product
  • Elements of the forecast
  • Exponential smoothing method
  • Weighted average forecasting
  • Other forecasting methods
  • Measuring the accuracy of forecasts
• Collecting and considering collaborative information from salespeople and customers
• Identifying trends
• Developing a "Best Practice" forecasting program
• Determining the proper anticipated lead time
• How to deal with inconsistent lead times
• Adequate safety allowance for unusual circumstances
• Vendor "target" buys
• When to set an absolute minimum quantity
• Protected stock for a customer
• Using excess inventory instead of buying
• How Electronic Data Transfer (EDI) and other ecommerce tools can improve the replenishment process
• Ordering imported products (the purchasing spreadsheet)

(10:00am – 10:15am: Break)

11:00am – 2:30pm: How Much of a Product to Order

The most advantageous replenishment quantity of each product will allow a distributor to maximize the return on their investment in inventory. In this section of the course, we will look at various ways of determining the replenishment quantity and when each method is appropriate. Topics will include:

• The economic order quantity
• The "best build" quantity
• Inventory and bills of material
• Dealing with items that experience sporadic sales
• Dealing with spare parts inventories
• When manually set minimum/maximum parameters should be used
• Buying in advance of a price increase
• Determining the proper purchase when faced with several discount options
• A check list to prevent new stock items from becoming dead stock
• Order quantities when importing (containers and long lead times)

(12:00pm – 1:00pm: Lunch Served)

2:30pm – 2:45pm: Break

2:45pm – 3:30pm: Deciding What Products to Stock in Which Locations

• How to identify profitable inventory
• How to identify non-profitable inventory that leads to other profitable sales
• Deciding what inventory to stock in each company location
• Do you replenish a branch from another warehouse, or a shipment from the vendor?

3:30pm – 4:30pm: Setting Goals and Analyzing Your Progress

In this session, we will discuss the measurements that will guide you in determining how well you are managing your inventory investment:

• The customer service level
• Inventory turnover
• Turn & earn ratio
• Percentage of excess stock and slow-moving inventory
• Target inventory investment

Our discussion will include how to accurately calculate each measurement, how to set performance goals, and some of the things you can do to achieve these goals.

4:30pm – 5:00pm: How to Get Started

After sitting through inventory management instruction, many owners, buyers, and branch and warehouse managers see the value of effective inventory management, but don't know where or how to start. In this final section of the seminar, we'll discuss how to develop a detailed, customized inventory action plan for your company.

Jon Schreibfeder is president of Effective Inventory Management, Inc., a firm dedicated to helping manufacturers, distributors, and retailers get the most out of their investment in stock inventory. Jon literally "grew up" in a family-owned distribution business and started studying inventory management philosophies and best practices in the late 1960s. In the early 1980s, Jon went on to become a distribution industry "trouble shooter" for two major computer companies. His task was to help the computer companies' customers use their available computer tools to better manage their largest asset, inventory. Over the past 20 years, Jon has helped more than one thousand firms improve their productivity and profitability through better inventory management. He is a frequent contributor to more than a dozen industry publications and is the author of a series of books on effective inventory management including "Achieving Effective Inventory Management – 2nd Edition" and the brand new "Guessing Right... How to Boost Inventory Forecast Accuracy" published in August 2003 by the National Association of Wholesale Distributors.

A featured speaker at seminars and conventions throughout North America, Latin America, Asia, and the Pacific Rim, Jon has been awarded the title "Subject Matter Expert" in inventory management by the American Productivity and Quality Center. Jon is also a member of the Editorial Board of Practitioners Publishing, a leading publisher of accounting guides and textbooks.

"Great seminar – I like the practical stories of companies you have worked with. Great job. I highly recommend it to others."

"This course gave me ideas I can implement immediately and gain immediate results."

"The best seminar I have ever attended!"

"The instructor [Jon] displayed a sound proficiency in the subject matter and was able to teach it effectively."

"Your upbeat teaching style kept our whole class on their toes. Definitely recommend this seminar to any company looking to get a handle on their inventory."

"Even after attending a prior training session, reading books, and watching an inventory management video series many times, I firmly believe your instruction has been the most informative."

"You have excellent teaching skills and that made the classes that much more enjoyable."

"Excellent seminar. I came away with some clear guidelines for the direction that our company must go to meet our long-term inventory goals. I feel like I have a good support system for any questions or issues that I may come up against."