Review of Inventory Management Practices
This product is designed to offer Logihedron clients the ability to carry an optimum level of inventory investment based on the Consumption, Lead Times and Storeroom space.
It is primarily designed for the management of stores inventories. The analysis can also identify if there is need for the re-configuration of the storeroom to maximize efficiencies in the picking and put-away of inventory.
WHAT is involved in a Review of Inventory Management Practices?
- Logihedron would request a data extract from the clients ERP system
- Logihedron would insert data into their proprietary software for analysis
- Logihedron would analyze output and assign appropriate values for inventory levels based on Lead Time, Consumption minimum order requirements and any other requirements that may exist.
- Logihedron would identify excess/no move, obsolete inventories with dollar values
- Logihedron would measure dollar value of inventory at pre and post analysis to demonstrate savings in investment at new levels
- Logihedron would reconfigure space in stores to accommodate new inventory levels
- Investigate moving to a “Order by Vendor Day” concept
WHY should you conduct a Review of Inventory Management Practices analysis?
- Reduces investment in inventory ($$savings through re setting of inventory levels)
- Reduce excess/no move inventory through vendor returns ($$savings in inventory investment)
- Remove or return to vendor obsolete inventory ($$ savings in inventory investment)
- Labour savings through transition to “order by Vendor Day” savings
- Reductions in number of Purchase Orders (hence invoices) as a result of transition to “order by Vendor Day”