Inventory Management for Competitive Advantage : Including a Practical and Effective Purchasing Strategy for Managers book cover
1st Edition

Inventory Management for Competitive Advantage
Including a Practical and Effective Purchasing Strategy for Managers

ISBN 9780367442897
Published March 16, 2020 by Routledge
284 Pages 137 B/W Illustrations

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Book Description

Smart, strategic inventory management delivers competitive advantage, yet Inventory Turn trends suggest that little seems to change. Sustainable improvement through increasing control of systems and processes generates savings that can, in turn, be invested in growth initiatives. Inventory is not something that just concerns planning, production and finance. By working to better understand and control their inventory-related processes, everyone can drive improvements that will harness inventory’s potential to become a source of sustainable competitive advantage.

Unlike other guides to inventory management, this book is not only aimed at planners or inventory managers, but details the impact, both direct and indirect, that all functions have on inventory. It is rich in practical tools that can be clearly implemented, including a detailed purchasing strategy and guide to error management. It is also rich in best-practice cases that further show how to implement these methodologies in a real-world context.

This book is essential reading for any manager or executive looking to boost their organisation’s competitive advantage, as well as students of inventory management, production and operations management.

Table of Contents

Acknowledgements, Preface, Terms, Introduction, Checklists, Telematics, Layout, 1 Background, Inventory phases, Stable equilibrium, Conflicting objectives, Measures, Inventory value, Inventory Turn / Inventory Days, Actions, 2 Finance, Raw material receipt, Product manufacture, Product delivery to inventory, Product sales, Inventory count, Preparation, Count, Reconciliation, Review, Physical reconciliation, Financial reconciliation, Measures, Actions, 3 Planning, Opening inventory, Customer orders, Production resource, Safety Stock, Demand forecast, Measures, Criteria (preset parameters), Demand, Resources, Summary, Actions, 4 Production, Preparation, Execution, Delivery, Measures, Summary, Actions, 5 Dispatch, Accuracy, Damage, Training, Special conditions, Measures, Summary, Actions, 6 Goods Inwards, Accuracy, Material loss, Briefing, Measures, Summary, Actions, 7 Purchasing, Part 1: General purchasing, Part 2: Purchasing Strategy, 8 Sales, Anticipating and order, Safety Stock, Consignment inventory, Product pricing, Flexibility, Minimum batch sizes, Pricing for failure, Bullwhip effect, Certainty, Measures and control systems, Summary, Actions, 9 Technical Service, Knowledge gap, Customer trials, Initial use, Ongoing use, Troubleshooting, Measures, Summary, Actions, 10 Customer Service, Customer portals, Familiarity, Templates, Variance reports, Part packs, Error spotting, Measures, Summary, Actions, 11 Marketing, Product promotion, Understanding customer requirements, Market trends, Measures, Summary, Actions, 12 Research and Development, New product development, Production support, Quarantine inventory, Customer complaints, Measures, Summary, Actions, 13 Error management, Skill gap, Knowledge gap, Not following a process correctly, Visualisation, Equipment, Process, Training, Focus, Dealing with errors, 14 Summary, Paying attention to detail, Aligning strategies, Process, Measures, Appendix 1 Inventory count checklist, Appendix 2 Analysis template, Appendix 3 Safety Stock, Appendix 4 Safety Stock review, Appendix 5 Anticipated order pre-approval, Appendix 6 Detailed production plan, Appendix 7 Production briefing agenda, Appendix 8 Shift handover form, Appendix 9 Dispatch variance report, Appendix 10 Standard selection list, Appendix 11 Dispatch instructions template, Appendix 12 Goods Inwards instructions template, Appendix 13 Preferred purchase quantity approval, Appendix 14 Manufacture without purchase order, Appendix 15 Consignment inventory request, Appendix 16 Consignment inventory administration, Appendix 17 Customer trial checklist, Appendix 18 Initial use checklist, Appendix 19 Ongoing use checklist, Appendix 20 Market research checklist, Appendix 21 New raw materials introduction, Appendix 22 Formula and process change management, Appendix 23 ECR segment attributes, Index

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Keith Jones is a consultant in inventory management and project data analysis with 40 years' experience, primarily in the chemical industry, working in roles from R&D Chemist to Commercial Director. In his consultancy work he harnesses his experience of working in R&D, production quality control, purchasing, finance, customer service, production planning, IT project management, supply chain project management, data analysis, inventory management, sales, market research, warehousing and logistics. The breadth of his experience has given him a unique perspective on inventory management that is applicable across all industries.