How do you coordinate inventory across multiple locations?

@Goheer, stock accuracy is a challenge that every inventory manager has to deal with. Something will always be placed elsewhere or the stock count will not match....excess or short. Physical inventory count,or inventory audits is a must to have in any WH. A dedicated team who would have their fixed targets to complete a full wall to wall Inventory cycle check with in a specified duration. Organizations decide the time periods inventory classification wise. Fast moving items should be more regularly audited than the not so frequent ones or the slow moving inventory. The criteria of what is fast and slow is also business and organization specific. Any standards or articles will only give you guidelines. And then of course "accountability" !

The most important aspect in this regard is "visibility" across the supply network. If the supply and demand streams are visible then there will never be a possibility of a bullwhip effect which is a parasite in inventory management. Secondly, inventory management should be demand driven and not forecast driven. Forecast based model is a thing of the past and in today's dynamic and ever changing landscape, demand driven supply chains thrive and take the game to an entirely new level. Other factors to look out for are lead times, proximity of storage locations, transportation costs, min max levels. Inventory turns should be high but at the same time inventory levels should be lean, the challenge is to strike an equilibrium between the two.

Depending on your product supply demand and the geographical locations.... you can assess the real requirements through ERP or WMS. Based on that you should be able to arrange, may be having a hub and spoke method.

Coordinating inventory across multiple locations is a complex logistical challenge that necessitates a delicate balance between demand forecasting, efficient supply chain management, and real-time data visibility. This coordination hinges on an agile approach that integrates technology, just-in-time practices, and data analytics to synchronize supply and demand, ultimately enhancing customer service and reducing the risk of overstock or stock outs. It's not merely about managing physical products but also about harmonizing information, fostering collaboration between locations, and responding swiftly to market fluctuations, all while maintaining cost-effectiveness and a competitive edge in the increasingly interconnected global marketplace.

What methodology is used for correction or reduction in inventory placement errors in warehouses where already have WMS or EWMS implemented. For instance if any worker placed the pallet on a bin and doesn't scan/ tag it with the bin location? In 2nd scenario worker shuffle the bin locations due to any reasons without scanning or tagging ?

With the high volume of inventory in & out everyday, it's crucial to have a centralized inventory management system to monitor the inventory movement & integrate with order management, which provides real-time visibility of the stock level at different locations. Apart from that, historical data can provide the trend of the supply-demand, storage capacity throughout the year & help better manage the inventory.

Every human being is already an ERP. You do everything everyday in life. Safety Finance Marketing Operations Engineering Procurement Transportation Human Resources Information Technology You know how often you need Milk Meat Fruits Vegetable Trash Bags Toilet Paper Canned Goods Cleaning Supplies Gas Phone Insurance Electric Bill Rent/Mortgage If you've made it this far in life You already have your own Internal ERP System Apply that to your Operation After all It's a living Breathing Entity When they say, this is your baby. Treat it as such. Follow me for complex thought simplified. #xpandurangeamotion

Actually WMS or a module in ERP...now days common as it's gives more benefits like.., Improved inventory accuracy Inventory visibility with real time data Increase efficiency Reduce stock outs Data driven decision making....

Software - centralised inventory management system Define clear plant/storage/bin locations for the different storage sites and implement a clear process for execution to improve visibility

I would add the 4th trade-off in CO2 emissions from transportation. Supply planners need to calibrate their compass on cash flow, service, profit and environment before executing customer- and/or replenishment orders. Tomorrow, hopefully, customer satisfaction is equal to green transport solutions with the up- and downstream responsibilty we all have to undertake in the supply chain.

Optimizing is a critical aspect and gives benefits to the business when done correctly.... Minimized the holding cost Better space utilization Minimized the stock outs Enhanced customer service

Inventory optimization techniques such as safety/contingency stock and reorder point should take into account the lead times from the suppliers to the DCs/hub warehouses of the network and from the DCs/hub warehouses to the local/spoke warehouses along with the variability of such lead times

Managing the right inventory levels in a multi-echelon supply chain can be challenging. The trick is to find the balance between centralized v/s decentralized inventory holding models. In my experience, it helps to split the safety stock into two key elements - demand safety and supplier performance safety. Demand safety stock should be closer to the point of sale (decentralized) allowing the business to absorb demand shocks in a quick and efficient manner. Supplier performance safety stock should be with the buying entity (centralized) to accommodate low fulfillment/ fluctuating delivery lead time etc.

Frequently at this step another constraint pops up “available storage area”. If you are not designing your facilities from greenfield, you have to consider the storage area limitations while trying to optimize your inventory allocation. Usually it is frustrating when you don’t have enough space for “your” optimized inventory allocation; but in many cases this “pressure” urges you to create innovative solutions and even a better setup. I assume this is also the main reason why decision makers usually assign less spaces to the logistics professionals than they delicately calculated :)

Do not forget to take the cost of manpower into consideration. An efficient system will move inventory often enough to not run out at any location, but I frequently enough that transfers are not a daily task. Transfers should deal with unaccounted fluctuations in usage and overstock situations, proper procurement practices optimize purchasing with direct shipment to each location.

One should have a good demand planning team in order to plan sufficiently for levels of inventory to be available in each location. Handling inventory multiple times within the network is a defect that could lead to errors in inventory levels, and add to the WAC of the product.

Fundamental la coordinación de transferencias a nuestros distintos clientes; es decir, tanto internos como externos. debemos dise?ar un "punto cero"o corte de actualización y parada de las mismas, para la emisión de la "foto"del momento del inventario. Luego podremos continuar con la "normalidad"de la gestión separando claramente toda la emisión de los distintos tipos de documentos que debemos relevar para observar el corte del inventario.

Optimizing inventory and transport is key to our strategy, balancing efficiency with sustainability. We use smart allocation methods to manage inventory, enhancing operational efficiency and customer satisfaction. Emphasizing eco-friendly logistics, we've shifted towards milk-run systems and are moving from truck to train transport, significantly cutting CO2 emissions. Regular audits ensure accuracy and space optimization. Our approach not only saves costs but also reduces our environmental footprint, showcasing our commitment to sustainable operations."

Managing inventory transfers can be particularly challenging for products with short use-by dates, such as perishable food or biological items. Ensuring product freshness and quality during transportation is crucial, requiring careful attention to temperature control, transportation speed, and handling procedures to prevent spoilage. Effective coordination among suppliers, warehouses, and transportation providers is essential. Implementing advanced inventory management systems and agile logistics strategies can streamline processes and optimize the handling of time-sensitive products in this demanding environment.

A key metric here is also to measure and manage Absolute/Gross inventory adjustments. If a Warehouse is reducing inventory, it will send signals for replenishment. If the team finds and returns the inventory a few days after the replacement product has been ordered, you will find product out of place in the network. Most companies I've worked at focus on Net inventory because they're looking at the Financial impact to the P&L. Gross inventory however speaks more to the Operation itself and the precision needed to have a reliable network.

In my experience - when reviewing performance there are several things not to forget. 1. Set aside a consistent reoccurring time to discuss. Once a month is typically not enough. 2. Involve the right people- you should have representatives from demand planning or sales, and logistics. 3. Automate the reporting and make it very intuitive. If reports are too complicated to pull together or difficult to understand, people will look for excuses to get out of being involved.

The complexity and balance of the inventory level vs demand will be key challenge for the inventory performance. The fluctuation of demand with short lead-time needs to be main consideration.

A gest?o de estoque deve ser fortemente orientada por um plano de S&OP, que deve orientar quais itens , em quais quantidades devem ser alocados em cada ponto de estoque estratégico.

Weekly inventory reviews are a cornerstone of our strategy, aiming for inventory levels at a maximum of 70% of sales. Both surges and drops are scrutinized—increases tie up cash, while decreases might risk our customer commitments by cutting into safety stock. Any discrepancies trigger a deep-dive analysis to pinpoint issues, whether in finished goods, components, raw materials, or semi-finished products. Identifying the root causes is crucial for maintaining operational balance and ensuring customer satisfaction. This disciplined approach helps us navigate the fine line between efficiency and reliability.

I've done benchmarking against similar companies using their financial statements to compare inventory performance, such as Inventory Turnover and Days on Hand. Watching the current performance, and recent trends, help us understand if we are currently performing well, and if we are performing well compared to recent history. This is the most meaningful metric I've found outside of knowing associates directly in other companies to benchmark against.

Start with benchmarking your own mono-echelon vs multi-echelon distribution networks in terms of Service Level to your customers, delivery times, not to forget costs of transport, warehousing, excess/obsolete. Then find the right balance according to your company's priorities.

según nuestras experiencias en inventarios, el orden de las ubicaciones, el buen almacenamiento, y la eficiencia en los lanzamientos y conteos, es lo mejor para un buen inventario.

Inventory management is critical for any organization to manage its customer satisfaction and Business metrics, missing on either of them cannot be affordable. Inventory needs to be #responsibility of all the functions including Sales, Marketing, Supply Chain, Manufacturing and Finance. Unless there is seamless coordination across the Organisation, final objective will not be achieved. While there are many digital solutions & principles (#EOQ #MPS #SnOP etc) to manage the active inventory, equally critical is to manage the #ExOb / #SlOb inventory.Regular review & #liquidation actions needs to executed.Look to generate #WealthFromWaste, something which is not useful to you may add value to somebody else. #CSLearnings

Para mim, a principal medida deve ser a organiza??o. Locais devidamente organizados, por lote, limpos e com uma pré contagem bem feita. Deve-se emitir os relatórios de controle de quantidade , lotes e validades e verificar as informa??es nas semanas que antecedem o inventário. N?o deixe para no momento do inventário descobrir surpresas desagradáveis. Com um estoque bem monitorado e organizado, o inventário tende a ser um sucesso!

A lot of people have already discussed the need for an inventory management system. In my experience it is a big plus. However, the processes have to be tight. I found implementing LEAN principles covers processes, gaps, teamwork, and continuous improvement. I apply Deming’s 14 points for management to help ensure that it is sustainable. The people doing the work must own the process. If they are engaged in creating and improving it will be done right. Lastly, LEAN is a bottom up process as is implementing a WMS. However, it must be fully supported from the top down. Otherwise, some employees will sabotage the implementation and it will go nowhere.

1. Evaluate your current inventory system and identify any issues or inefficiencies. 2. Implement an inventory management software system that allows you to monitor and track inventory levels across multiple locations in real-time. 3. Establish a standard set of inventory control procedures. 4. Designate a central inventory control team or point of contact to oversee coordination efforts between locations. 5. Use communication tools such as email or messaging apps to keep all locations informed of inventory status, including what items are available, requested, or on backorder. 6. Regularly audit inventory levels and usage across all locations to ensure accuracy and identify trends.

By using centralized inventory management software to track and synchronize stock levels across all locations in real-time, followed by implementing a standardized procedure of stock--takes or inventory cycle counting timely.