Nearly 200 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.

• Current on-hand quantity.

With this data and a short 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.

Please note that to ensure the confidentiality of your information:

• All of your customer information is coded with a randomly assigned customer number. None of our customer records includes any information that could identify your company.

• As soon as our analysis is completed, your data and analysis will be removed from our system and stored on media in a locked cabinet until you request that we erase it, or for one year, whichever comes first.

• You will receive a document from us stating that we will not disclose any of your data or information about your company to anyone or to any person other than your designated representative without specific written permission of your designated representative or a specific court order.

This analysis typically consists of a two-day visit to your company by Jon Schreibfeder. The actual amount of time needed on-site will be dependent on the size of your company. EIM guarantees a maximum fee for each consulting engagement when time is reserved for Jon’s visit.

Analysis Phase (Day One)

Jon Schreibfeder visits your facility (or facilities) and examines all of your inventory-related policies and procedures including:

• What are your corporate policies and procedures for processing every type of inventory-related transaction?

• What criteria do you use in deciding what products to stock in each location?

• How do you predict future customer demand of each product?

• How do you decide when to reorder products and how much to reorder?

• What replenishment source and quantity results in the lowest total cost of each item while retaining a high level of customer service?

• Are products stored in your warehouse in order to minimize your warehousing costs? Can your warehouse space be better utilized?

• How do you identify and liquidate dead inventory and excess stock?

• What measurements do you utilize to track the performance of your inventory investment?

Plan Development Phase (Day Two)

From the information gained in the analysis phase, Jon will develop overnight a preliminary plan to help your company achieve the greatest benefit possible from the funds you have available to invest in inventory. On the second day of his visit to your company, you will review this plan with Jon:

• Modify the plan as additional information is developed.

• Discuss how to utilize your current computer software to help achieve effective inventory management. These discussions will include any necessary or optional software enhancements to your current system as well as possibly supplementing your software with Excel® spreadsheets or an Access® database.

• Develop incremental as well as eventual goals.

• Determine the resources necessary to achieve these goals.

Follow-up Phase (Nine Months Following Plan Initiation)

Within a week of the on-site visit, Jon will deliver a finalized plan (in your choice of either Microsoft Word® or Microsoft Project® format) detailing what will be necessary for you to achieve Effective Inventory Management. For nine months following delivery of the plan, you will have unlimited email/phone consulting support as you implement your plan. At your request, at no additional charge, EIM will provide check-up phone calls or emails to check on your progress in completing the plan.