Meros Pharm - AIWO - Inventory Management - Presentation.pptx

Award in Warehouse Operations Inventory management Your host for the day INSERT NAME INSERT BUSINESS INSERT JOB TITLE Housekeeping and ground rules Toilets Programme overview Warehouse fundamentals Inventory management Moving and handling goods P...

Award in Warehouse Operations Inventory management Your host for the day INSERT NAME INSERT BUSINESS INSERT JOB TITLE Housekeeping and ground rules Toilets Programme overview Warehouse fundamentals Inventory management Moving and handling goods Picking, packing and wrapping goods Learning objectives 1 2 3 Identify problems that can Explain the purpose of a Describe the format and occur when checking stock check. structure of a stock check stock levels and stock records 4 5 6 Explain the process for Describe the purpose of Explain appropriate action dealing with any stock rotation and why it when dealing with damaged, faulty or out of is important. identified problems. date items.  What is inventory? What is inventory management? Inventory is the raw materials, components and finished goods a company sells or uses in production. Inventory management is the act of ordering, tracking, storing and selling inventory across the entire supply chain. Forbes.com Different types of inventory? Raw Merchandis Work in Finished material e and progress supplies goods s  What is the difference between inventory and stock? Inventory vs Stock Inventory Stock Stock specifically refers to the goods or Inventory encompasses all the goods products that a business holds for the and materials a business holds for the purpose of resale. Stock typically purpose of resale, production, or includes finished goods that are utilisation in services. available for immediate sale to customers. Types of inventory: Types of stock: Raw materials Retail stock Work In Progress (WIP) Wholesale stock Finished goods Safety stock Maintenance, Repair and Operations (MRO) supplies Inventory examples Type of business Manufacturing Retail Wholesale Entire range of Bulk products held Raw materials products for sale for sale WIP Inventory Finished goods (stock) Supplies necessary Supplies for store for managing the MRO operations warehouse The products on the Mainly finished goods shelves and in the Bulk goods ready to be that are ready to be Stock sold to distributors or warehouse that are sold to retailers or available for sale to other businesses customers customers Benefits of IM Increases revenue Reduces costs Improves cash flow Increased profit margins Improves customer service How quickly you get your products to your customers How reliably you can fulfil orders How much visibility you can give your customers  Inventory management process 1 2 3 4 Goods are delivered Inspect, sort and store Monitor inventory Stock orders placed goods levels 7 6 5 Trigger Update inventory Dispatch Take goods from reordering levels stock Inventory process map Order received  In stock Out of stock  Item Place order with Pick items supplier discontinued Receive and ship Ship items Refund customer items Key components of IM Inventory control Inventory tracking Warehouse management Order management Demand forecasting Supplier management  What are the challenges with inventory management? Challenges with IM Demand forecasting Inventory visibility Overstocking and understocking Supply chain disruption Cost management Warehouse management Product lifecycle management Technology integration Data management and analysis Regulatory compliance Security and loss prevention Overcoming challenges with inventory management Use inventory optimization strategies like Just-In-Time (JIT), 1 Demand forecasting A Economic Order Quantity (EOQ) and safety stock calculations. Implement effective product lifecycle management to handle 2 Inventory visibility B handle obsolescence obsolescence and newand new product product introductions. introductions. Overstocking and Develop and maintain robust compliance programmes to 3 C understocking meet regulatory requirements. Regularly analyse holding and ordering costs to find a 4 Supply chain disruption D balance that minimises total inventory costs. Ensure seamless integration of inventory management 5 Cost management E systems with other business software for unified operations. Develop a Develop a diversified diversified supply supply chain chain to to reduce reduce dependency dependency on on 6 Warehouse management F a single supplier and mitigate risks. a single supplier and mitigate risks. Utilise advanced Utilise advanced forecasting forecasting tools tools and and techniques, techniques, such such as as 7 Product lifecycle management G machine learning algorithms to improve demand predictions. machine learning algorithms to improve demand predictions. Implement loss loss prevention prevention measures, measures, such such as as security security 8 8 Technology integration Technology integration H H Implement systems and regular audits to protect inventory. systems and regular audits to protect inventory. Data management Data management and and Implement real real time time inventory inventory tracking tracking systems systems using using RFID, RFID, 9 9 II Implement analysis analysis barcodes and barcodes and internet internet enabled enabled devices devices to to improve improve visibility. visibility. Leverage data data analytics analytics to to monitor monitor inventory inventory trends, trends, identify identify 10 10 Regulatory compliance Regulatory compliance JJ Leverage patterns and and make make data data driven driven decisions. decisions. patterns Design warehouse layouts that maximise space utilisation 11 11 Security and Security and loss loss prevention prevention K K Design warehouse layouts that maximise space utilisation and streamline picking and packing processes. and streamline picking and packing processes. 10 11 1. G 2. I 3. A 4. F 5. D 6. K 7. B 8. E 9. J C H..  What is the What is stock purpose of a checking? stock checks and stock takes? What is stocktaking? A stock check is the process of verifying inventory levels for a specific item or group of items. FMIS Stocktaking is the process of manually counting and valuing a business’s entire inventory of goods. FMIS Stock take vs Stock check Stock take Stock check Comprehensive Can be partial or targeted, Usually scheduled at regular focusing on specific items or intervals and is more exhaustive. categories. Provides a complete and accurate Flexible, can be done as needed. picture of the entire inventory. Aimed at maintaining ongoing accuracy and identifying discrepancies in real time.  Time consuming and disruptive. Conducted with minimal  Prone to human error. disruption.  Discrepancies relating to less valuable items.  Risk of loss or damage. Purpose of a stock check Accuracy of inventory records Financial integrity Operational efficiency Sales and customer satisfaction Loss prevention Compliance and audit requirements Strategic planning and decision making Performance evaluation Purpose of a stock take Accuracy of inventory records Financial accuracy Regulatory compliance and audits Operational efficiency Loss prevention Strategic planning and decision making Sales and customer satisfaction Performance evaluation Business continuity Types of check/take Annual Periodic Continuous Spot check Cycle counting Validation of stockouts Conducting a stock check What is the process or procedure for conducting a stock check? What are the stages? What actions should happen at each stage?  Conducting a stock check Preparation Execution Post stock check 1 2 3 4 5 6 7 8 9 10 1. Plan the stock 3. Organise the 5. Conduct the 7. Identify 9. Report check space count discrepancies findings Determine scope Clean and Physical count Variance Create Report Set a schedule arrange Verify labels analysis Review Inform staff Label sections Double check Investigate 2. Prepare tools 4. Assign teams 6. Assign teams 8. Adjust records 10. Implement and materials and roles and and roles Reconcile Improvements Inventory list responsibilities Enter data Document Action plan Counting sheets Counters Cross check changes Training Tools Recorders Process Supplies Supervisors improvements What problems can occur or arise when checking stock levels and stock records? Potential problems Human Error Inadequate Documentation Poor returns process System limitations Theft and fraud Stock damage or loss Inventory obsolescence Inefficient processes Physical constraints Supplier issues Communication gaps Reconciliation challenges Seasonal variations Resolving issues with stock checks For your allocated stock check scenarios. Consider what solutions or problem solving actions you could take. Example solutions Scenario 1: Data Entry Mistake Scenario 2: Incomplete Scenario 3: Theft Transaction Recording Implement a double-check system Install security cameras and where another employee verifies Establish a standardised receiving implement access control the data entry before finalizing it. procedure that includes immediate measures in the warehouse. Additionally, use barcode scanners updating of the inventory system Conduct regular audits and to reduce manual entry errors. upon receipt of goods. Use surprise checks to deter theft. handheld devices to update Establish a whistleblower policy to records in real-time as goods are encourage reporting of suspicious checked in. activities. Scenario 4: Supplier Shortage Scenario 5: Damage During Scenario 6: System Glitch Storage Train receiving staff to carefully Regularly update and maintain verify and document all incoming Review and improve storage inventory management software to shipments against purchase conditions, including temperature fix bugs and prevent glitches. orders. Implement a reconciliation controls and proper shelving. Implement data validation checks process where discrepancies are Implement a regular inspection within the software to detect and immediately reported and resolved schedule to check for potential correct anomalies automatically. with the supplier. storage issues. Use FIFO (First-In- Conduct regular system audits to First-Out) inventory management ensure data integrity. to ensure older stock is used first. Resolving discrepancies Re-count the stock Look for the stock in another location Check the stock has been received Check customer returns Check the unit of measurement Verify that the SKU or other identification number Ensure it is the correct product Check the inventory management system Check for unentered orders Check previous data entry is correct Investigate potential theft or fraud What is stock rotation? Stock rotation is the process of organising inventory to mitigate stock loss caused by expiration or obsolescence. Repsly Stock rotation methods - FIFO The oldest units of stock are sold first A business New inventory is The inventory that organises its received and placed was received first is inventory according at the back of the prioritised for to the order in which picking queue. picking. it was received. Stock rotation methods - FEFO The stock units closest to expiration are sold first 10 10 10 5 7 7 2 5 5 days to 2 2 expiry days days to to expiry expiry A business New inventory is The inventory that is organises its received and placed closest to expiring is inventory according according to its prioritised for to expiration dates. expiration date. picking. Stock rotation methods - LIFO The newest stock units are sold first A business New inventory is The inventory that organises its received and placed was received most inventory according at the front of the recently is to the order in which picking queue. prioritised for it was received. picking.  Damaged, faulty or expired items Identificati Documentatio Decision Inventory Reporting on n making adjustment and review 1 2 3 4 5 6 7 8 9 Segregati Evaluation Execution Root cause on analysis  Damaged or faulty items – example workflow Identificati Documentatio Decision Inventory Reporting on During a Details n of the It is making decided to adjustment Inventory records and review routine damage are return the are updated to The process is inventory recorded in the damaged goods reflect the return, reviewed to check, an inventory system, to the supplier. and financial prevent future employee including records are incidents. discovers a photographs and adjusted. pallet of potential causes. damaged 1 2 3 4 5 6 7 8 9 goods. Segregati Evaluation Execution Root cause on The employee The warehouse The logistics analysis An investigation moves the manager team reveals that damaged assesses the coordinates the improper pallet to a damage and return shipment packaging caused designated consults with with the the damage, and quarantine the quality supplier. new packaging area. control team. guidelines are implemented. Recap Inventory management Types of inventory Inventory vs Stock Challenges with IM Conducting a stock check Stock check vs stock take Issues when stock checking Stock rotation Damaged, faulty and expired goods People 1st International www.people1st.co.uk Vertigo [email protected] Cheese Lane Bristol BS2 0JJ @p1stgroup United Kingdom Tel: +44 20 3074 1222 People 1st International