I have applied the 9 steps to optimal ordering. Why is my inventory still out of balance?
Will the diligent application of the 9 steps to optimal replenishment orders we discussed in a previous blog post result in perfect inventory balance, high customer service levels and minimum inventory investment levels? The quick... Read More
9 steps to optimal replenishment orders
An honest, objective analysis of stock-outs and items in excess will generally lead to the conclusion that the orders placed were not correct. Whilst there are indeed many other factors that also contribute to these... Read More
Inventory classification as easy as A-B-C
In inventory discussions we often hear the word “Classification” and that it is an essential part of the fundamentals of inventory. What is meant by “Classification” and why is it so important? Is it simply... Read More
The major causes of stock-outs
What causes stock-outs? One common reaction to a stock-out is “the Buyer did not buy enough”. Stock-outs really hurt a business and it is important to understand the cause and not merely deal with the... Read More
Is Inventory Management as important as Inventory Control?
As a business owner, you require an inventory management system that insures the next order you place is the right quantity both for your customers and for your business. Frankly, without an inventory management system... Read More
Lagging indicators are death to sales
Most ERP systems can give you a lagging indicator of something that went wrong: You are out of stock of an item, and you cannot fulfil your sales obligations You just received a purchase order,... Read More
Do you have any idea what your fill rate is?
Most companies have some kind of anecdotal information about their fill rate. They will say something like “at least 80% of the time my customers come to buy, we can fulfil their order.” They often... Read More