Over 300 distributors, manufacturers, and retailers have benefited from our detailed "dissection" and analysis of your current inventory situation. You send EIM an Excel^® or delimited text file containing the following information for each inventory item in each location (one row of data for each item/location):

• Warehouse or store number
• Item number
• Item description
• By month, 12 to 24 months of usage history
• Number of times the product was sold/transferred/used in production in each of the past 12 to 24 months (optional)
• Lead time for the item from the primary replenishment source
• Minimum reorder quantity from the supplier
• Current replacement or average cost per unit
• Sales dollars of the item during the previous 12 months (optional)
• Current on-hand quantity

If all of this information is not available, don't worry. Just contact EIM and we can determine what analysis we can perform with the data you have available.

With this data and a phone conference we will perform an analysis of your current inventory utilizing Excel^® spreadsheets. This analysis includes:

• Identify possible dead stock and excess inventory.
• Identify the products that probably should be stocked in each location.
• Usage history that includes possible unusual activity.
• The accuracy of your forecasting of future demand of products.
• From EIM's library of forecast formulas, determine the most accurate forecasting method (based on historical usage) for each item.
• Determine the best method to incorporate market conditions and collaborative information from customers and salespeople into the forecast.
• Suggested replenishment parameters for each item.
• Prepare a special spreadsheet that can be utilized to upload the calculated replenishment parameters into your current computer system.
• Suggested replenishment source for each item (i.e., vendor or transfer from another company location).
• Current versus target inventory investment and turnover.
• Inventory ranking (i.e., identify the products that contribute most to your success).
• Suggested quantity of each product to be stored in a primary storage location.
• Maximum and average quantity of the product that would need to be stocked in a surplus storage location.

Complete documentation is provided, as well as step-by-step instructions that allow you to produce the same analysis as often as you like in the future with updated inventory and sales data.

The actual analysis provided for a particular company is dependent on factors such as:

• Industry
• Market conditions
• Number of stocking locations (i.e., warehouses or branches)
• Number of products stocked in each location
• Profitability objectives

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