How can you optimize your inventory control system with continuous improvement techniques?

To optimize your inventory control system, adopt continuous improvement techniques like ABC analysis for prioritizing items, set up regular inventory audits to identify discrepancies, employ just-in-time inventory to reduce excess stock, utilize barcode or RFID technology for accurate tracking, implement demand forecasting to anticipate needs, and solicit feedback from stakeholders for process enhancement. Regularly review and refine these strategies to enhance efficiency and minimize costs.

Here's how to continuously improve your inventory control system using the Plan-Do-Check-Act cycle ?? A bicycle company finds frequent stockouts for high-demand items. They plan to implement minimum stock levels for these items and do so by setting trigger points for reordering. They check by monitoring stock levels and fulfillment rates. If stockouts decrease, they act by standardizing minimum stock levels. If not, they might adjust the trigger points or explore demand forecasting to further optimize their inventory control ?? It's always a battle between Backorders vs Excessive inventory ??. It's important to know what's the risk appetite for the company and put processes accordingly ????

You must first determine the specific tools that meet your requirements. Barcode scanners, inventory management software, & RFID technologies are all commonly used inventory control instruments. Once you've chosen the right tools, enter all of the necessary information into the system, including product information, quantities, & locations. Regularly update and monitor your inventory levels to ensure accuracy and avoid stockouts or overstocks. Use your inventory control solutions' reporting functions to analyse patterns, estimate demand, and improve inventory management operations. To enhance productivity and save costs, assess and alter your inventory control techniques on a regular basis using the insights supplied by these technologies.

Inventory forecasting remains one of the biggest challenge for retail stores. This directly impacts on the cashflow. Thus, employing the right technology to help in coming up with the right forecast. Secondly, consumer trends are rapidly changing, right technologies can also help predict such trends and adjust accordingly. Technology will also play a key in the product design & development. Products that aligns & incorporates the current technological advancements will be the future preference.

What worked well for us was using the issuing of tooling as an opportunity to collect data. For us, it is cutting tools, so we collected the following: machine #, tool #, reason for changing the tool, part # that caused the need to change tool and tool life in mins. We analyzed the data and set expected tool change intervals. If the tool needed changed before the expected interval, a supervisor override was needed. This eliminated repeated breaking of tools on the same part due to an easily fixed issue. People were trying to do the right thing, get the parts made, but were not able to see the impact on the remainder of the shop. This allowed us to fix issues, reduce inventory, use coated tools for dramatic increased tool life.

We use the two-bin system for inventory items in the laboratories. Once the top bin is empty the end user places it in a returns area, it is collect by logistics, refilled and returned. While bin 1 is away to be re-filled, end users have bin 2 full of stock to continue working. Logistics team can then easily monitor which bins/items are used more frequently and re-order just in time.

Understanding how your team handles and moves inventory can help you identify areas of improvement. It can also prevent you from jumping to conclusions and 'solving a problem' that isn't there. For example, we had issues with receiving accuracy, incorrect qty, matching POs, and delayed shipments. When I worked with the receiving team to see what they were doing, it became apparent that the information coming from our suppliers was incorrect or missing and the receiving team was doing their best to move the product along. Working with the suppliers to improve overall data accuracy resulted in improved inventory accuracy, on-time payments, and a reduction in stockouts. The team then felt empowered and better set up for success.

Uma boa op??o é gerenciar os estoques de baixa movimenta??o ou Slow Moving (R$ ou US$) de >= 60 dias; >= 90 dias; >= 180 dias e de acurácia de estoques em base diária, usando sorteios aleatórios (ex.: 50 itens por dia) em software estatístico. Além disso, se o estoque envolver produtos que tem validade, seria adequado, gerenciar também os prazos (ex.: <15 dias; <30 dias; <45 dias) em rela??o ao vencimento. Por outro lado, implementar e gerenciar (com a??es e controles mais preventivos e robustos) os KPIs OTIF On Time In Full (%/mês), SOP (%/mês), BTS (%/mês), DTD (h) e Ocorrências de Rupturas nos PDV’s (qte/mês) e seus impactos em perdas financeiras para o Negócio.

Implementando e melhorando continuamente os Indicadores Chave de Desempenho (KPIs Key Performance Indicators) tais como: DTD Dock To Door = Tempo da Doca até a Porta, BTS Build To Schedule = Produzido Conforme o Planejado, Eficiência de Ciclo do Processo, OTIF On Time In Full = Entrega do Pedido Completo no Prazo Combinado, Estoques de Baixa Movimenta??o (Slow Moving) > 60 dias; > 90 dias; > 180 dias (R$ ou US$), Giro de Inventário, Atendimento ao SOP Sales and Operations Planning = Planejamento de Vendas e Opera??es, Reclama??es e Devolu??es de Clientes por Falhas de Entregas.

Incorporate root cause analysis into your cycle count program. If you are going to invest the time it takes to conduct 4-wall counts, get down to the “why” of discrepancies found and prevent them from reoccurring. Don’t let the number of parts counted in a time period be the metric you strive for. Quality over quantity.