INTRODUCTION
This 10-day training session is designed to ensure that effective strategic leaders are able to ensure their organisations become an industry pace setter by reducing costs whilst at the same time, improving service levels.
In every Supply Chain, service levels are paralleled with costs to serve; therefore changes to costs inevitably will have an effect on service levels, however, it is possible to deliver service, with less cost and this workshop we will show you how to deliver this unique business benefit. The sessions will also enable you to practically apply the key principles from many case studies that give clear evidence on those world class practises that successfully deliver improvements and business benefit.
In Supply Chain Management the policy related to Inventory is a critical competent of the Supply Chain strategy. However many organisations still rely on the Min/Max method for calculating requirements. The major reason for the lack of full functionality implementation of these advanced methods can be found in the lack of correct training in Inventory Management.
In abundant times, the methods used often delivered mediocre results but now that we are in recessionary times, there is a renewed focus on working capital: cash on hand, inventory and debtors.
The second half of this training session will demonstrate that:
- First of all, a voyage of discovery is required to fully understand the full potential of MRP. In other words: What can we do with our current software that will result in quick, easy gains in the order of magnitude of 50% and possibly more
- Secondly is to see the process of inventory management as a system that reacts and interrelates with everything we set out to do
- Thirdly is to put in place a measurement system that objectively measures the performance of each team as well as individuals contributing to inventory management. Surprisingly, it will include your customer as well
- Fourthly is to implement a seamless communication process to communicate on a horizontal plane, rather than the old hierarchical, vertical system
WHO SHOULD ATTEND?
- Leaders, senior managers and company directors
- Owners and operators of companies with supply operations
- Procurement, buyers and purchasing managers
- Production and manufacturing managers
- Logistics, warehouse and distribution managers
- Inventory planners and stock managers
- All of those who need an understanding of the relationships between cost, service and productivity in supply operations
PRE-REQUISITE
As this is a strategic course, delegates should have some experience of Supply Chain and Inventory Management. A basic knowledge of mathematics is also required for the second session, as calculations will be done using a basic calculator.
PROGRAMME OBJECTIVES
- Apply a thorough understanding of the costs of supply chain operations
- Improve internal and external customer service levels
- Understand and apply cross functional trade offs
- Determine the potential for effective Inventory Management
- Understand the functionality of the MRP system
- Appreciate that Inventory Management is a complete, integrated and interrelated system within the Supply Chain
- Make structured improvements to reduce costs whilst also, improve service
- Apply international best practice
ORGANISATIONAL IMPACT
- Clearer understanding of the links of costs and service in all of the company operations and activities
- Use the right key performance indicators to cover all supply chain and inventory activities
- Lower the investment in inventory
- Reduced cost of warehousing operations
- Improved customer service
- Apply continual improvement, monitoring and control
- Become a sector leader and a world class company
PERSONAL IMPACT
Attendees will therefore gain by participation as a result of:
- Understanding the cost side of supply chain operations
- Use analytical tools to identify cost reduction opportunities
- Make cost and service improvements
- An increased skill set, to business in general
- Increased levels of professionalism by learning techniques that will increase business performance
- Increased confidence to apply what you have learnt
- Improved personal performance
- Participants will be able to immediately implement a wide variety of time-tested techniques in inventory techniques. They will be exposed to the latest trends make organisations successful
- Gain a framework for continual improvement
- Use best in class practices
COMPETENCIES EMPHASISED
- Analysis
- Performance measurement
- Financial Appraisal
- Evaluation
- Improving
- Implement change
- Sharing and understanding others points of view
TRAINING METHODOLOGY
- Interactive and participation in lectures
- Pragmatic and “what will work”
- PowerPoint and Video presentations
- Real world exercises and action times
- Discussions of current problems
- Full functional Excel Spreadsheet examples (in module two)
- Appreciate varied case studies showing best practice examples
- Checklists and notes for later reference/reinforcement/application of main points
- Share experiences with other delegates from varied industries
- Learn from two former practitioners who are now experienced master trainers
PROGRAMME OUTLINE
DAY 1 - The Supply Chain
Using Supply Chain Management for organisational benefit
- Supply Chain Definitions
- The 8 Supply Chain Rules
- Customers and demand
- Competitive advantage
- Strategy definitions
- Supply Chain Models
- Supply chain performance measures
The Global Supply Chain
DAY 2 - Understanding Lead Time and the Service Concept
Lead time in Supply Chains
- Importance of lead time
- Overview of lead time
- Mapping
- Reducing lead time
Customer and Supplier expectations
- Demand drives supply
- Keys for Customer Value
- Understanding the Customer and the Supplier
- Customer and Supplier Service
- Customer and Supplier Satisfaction
- Customer and Supplier Success
DAY 3 - Inventory Strategy and Procurement Strategy
Inventory management
- Managing inventory in the supply chain
- Forrester effects
- Dealing with supply and demand variability
- Inventory strategy outline
Procurement in the supply chain
DAY 4 - Logistics Networks and Collaboration Strategy
Logistics and Facility Network design
- Network design
- Models of location
- Network decisions
- 0utsourcing and the use of 3/4PL
Using Strategic Alliance and Collaboration methods
DAY 5 - Supply Chain Strategy
Alternative supply chain and logistics approaches
- Cross docking
- Vendor management inventory
- JIT
- Lean supply chains
- Agile supply chains
Understanding the strategic fit
- Decision phases
- Process view
- Supply chain strategy:
- Competitive strategy
- Supply chain design
- Achieving the strategic fit
Rethinking the supply chain
DAY 6 - Inventory Management
Inventory Management defined
- IM and the company financial statements
- Definition of inventory
- Objectives of IM
- The IM system
- Trade-offs in IM
- Making out a business case for improved IM
Current situation in IM
- The mechanics of the Min/Max technique
- The result of the Min/Max method
- The impact of safety stock
- The benefit of customer segmentation (one size fits none!)
- Distinguishing between dependent and independent demand
DAY 7 - Classifying and Planning Inventory
Classification of inventory
- Dealing with excess and obsolete items, including the procedure to prevent it from occurring
- The powerful use of the ABC analysis
- The gross-to-net MRP process
- Using the Bill-of-Material
- Different types of Bill-of-Materials
- Practical example how to do the gross-to-net requirements using the Bill-of-Material
- Using Distribution Requirements Planning to plan multiple facility requirements
Linking Inventory with the higher level plans
- Strategic planning process
- Planning hierarchy
- Linking the customer requirement with the IM plan
- Balancing supply with demand
- Understanding MRP action messages
- Contingency issues
DAY 8 - Action and Implementation
Turning planning into action
- Crafting an appropriate replenishment plan
- Decide on the most advantageous stocking strategy
- Calculating the effect of lead time on your inventory
- Techniques to reduce the overall lead time of items
Inventory implementation issues
- Physical stock take
- Cycle counting
- Dealing with theft of inventory
- Warehouse solutions
- Dealing with direct charge orders
DAY 9 - MRO Inventory
Managing MRO inventory
- The special case of MRO inventory
- Impact of MRO on the financial health
- MRO maintenance policies and the effect on inventory
- Application MRO policies
DAY 10 - Ongoing Management
Using the Inventory Management Matrix to effectively manage your inventory
- Stratifying your inventory into manageable groups
- Setting appropriate strategies for each group
Auditing results
- Auditing your ERP system
- Physical stock take
- Cycle counting
- Summary and course overview
