What steps can you take to ensure a sustainable inventory management model?

Creating a sustainable inventory managment model is crucial for the long term success and environment responsibility of a business .. The first step is Data analysis and forecasting , where we should use advanced analytics and historical data to forecast demands accurately .More over, we should take into consideration the season ( ramadan , Christmas, back to school ----- etc ) , market growth, population, target customers ( if any new target nationalities), ethnics ,and customer behavior .

Sustainable inventory management is an approach that aims to optimize inventory control practices while minimizing the environmental impact of inventory-related activities.

Market forecasting is by far the most effective way to control inventory. Proper forecasting allows minimal overstock and potential waste. Forecasting models must consider all factors that affect the market, which can be a difficult task but when done well, the numbers will always balance, and they do!

A sustainable inventory management system is achieved through collaborative planning, forecasting, and replenishment strategies. Successfully putting the CPFR strategy into practice guarantees enhanced cooperation, communication, and information exchange throughout the supply chain cycle. To minimize shortages caused by supplier incapacity, you should work with suppliers to ensure that they are adequately prepared to meet your demands. This includes evaluating past needs, forecasting the quantity needed, and, in some cases, diversifying your supplier base. Internally, utilizing technology to track inventory depletion in real-time is essential for modifying your forecast and replenishment schedule in response to client demands

Assessing inventory needs is important and effective stage for sustainable inventory management . Key points to remember for assess inventory needs are - 1. Understanding Market trends and customer preferences 2. Estimating future demands and wrt global and national economic scenarios 3. Evaluation of supplier capabilities and reliability 4. Risk and analysis of change in market behaviour and SCM disruption due to regulatory constraints 5. Environmental impact and sustainability impacts due to operations carbon imprints / emissions 6. Optimisation of inhouse process including warehouse optimisation 7. Collaboration and alliance if needed 8. Regular Inspection and continuous evaluation of SOPs which includes training and campaigns

The EOQ formula: EOQ = √(2 * D * S) / H D = Annual demand for the product S = Ordering cost per order H = Holding cost per unit per year The (ROP) model formula: ROP = Average daily demand * Lead time + Safety stock Just-in-time (JIT) is an inventory management method that seeks to minimize inventory levels by receiving goods only as they are needed for the production process. This can help businesses to reduce inventory costs, improve efficiency, and free up cash flow

In a durable goods model, consignment displays versus on hand inventory can be an asset to reduce time to replenishment. Drop shipping orders to sales generated would free up inventory dollars for wider stock varieties.

In risk management, a Model Inventory is a repository that provides an overview of all the models that are available at a given time within an organization. It typically captures various attributes such as model stakeholders and their responsibilities, model classification (i.e. model tiering), and model status (e.g. development, validation, or production stage).

I believe JIT and VMI-Vendor managed inversion models are most economically acceptable models in market of growing economies like India and south asia . As these two above reduces cost of holding and reduce risk of stockout and increases efficiency. Recently India has introduced National Logistics Policy which is suitable to these two models and many ecommerce like BlinkIt and Zepto are slowly looking forward towards these to reduce Opex and sunk cost involved in expansion to different demographies

Finding the mix of these methods that fits your business or your market can save you money and reduce operational impact. FIFO for on-hand inventory also reduces aging costs and dead inventory.

Implementation of New Inventory system must be done in steps , suggesting it must be done prior stock’s exchange or movement post audits 1. Evaluate current inventory processes. 2. Adopt a cloud-based tracking system. 3. Utilize RFID/barcode tech for precision. 4. Prioritize eco-friendly materials. 5. Use data analytics for insights. 6. Collaborate with suppliers for JIT. 7. Ensure mobile-friendly monitoring. 8. Train staff for system proficiency. 9. Opt for energy-efficient infrastructure. 10. Regularly update based on trends and standards, fostering a sustainable, tech-savvy, and efficient inventory management approach.

Having the right model helps in identifying possible shortcomings and inventory challenges and allows you time to manage it appropriately

True, there should be, according to me a data driven integrated replenishment mechanism. 80:20 , focus on the 80% require strategic policies

Monitor inventory through regular audits, ABC analysis for prioritization, and tracking turnover ratio. Assess supplier performance, set safety stock levels, and utilize technology for efficient management. Implement accurate demand forecasting and address obsolete inventory. Analyze cost of goods sold and optimize ordering policies for effective inventory management.

Using these reports to identify your issues and if it's a training issue, putting together a good training for anyone handling the inventory, could solve a lot of issues. The reports benefit everyone.

I fully agree, the monitoring and evaluation should be real-time rather than periodical one and actions to be digitalised based on ascertained loss of value in the system

From my experience this should be building creativity and innovation in the management of inventory and scenarios for quick adaptability. VMI, stocking strategies, JIT all need to be explored

In my opinion is important is to train employees for technology use , environment awareness, safety and compliance, communication, team work and ethical practices is more important than institutional checklists

Un personal capacitado constantemente le garantiza a la empresa que tendra un equipo de inventarios con cualificación que hara la gestión de inventarios sostenible en el tiempo

I think this is where the "Why's" model comes in handy. Many times a person is given a job that they don't fully understand how important their contributions are. By explaining why the inventory process is important to everyone in the company, the person is put in a " buy in" position. It may seem self explanatory to people use to this field, but not so much to someone just starting out.

One primary stakeholder key to the success or failure of any inventory management model are your suppliers who as much as possible may align with industry trend but would also craft unique strategies for winning in their space. Relationship management, regular engagement and full understanding of their business model, structure, growth plan or otherwise will serve as key assumptions and input for your model.

Conduct regular audits! Technology is helpful, but people are still counting and make errors inputting information. Having a second or third set of eyes can make a difference.

o ensure a sustainable inventory management model: Implement demand forecasting to align inventory with sales patterns. Adopt a Just-In-Time (JIT) approach to minimize waste. Use inventory optimization tools for efficient stock levels. Embrace circular supply chains for recycling and reusing materials. Prioritize supplier sustainability practices. Analyze and adjust ordering practices to reduce overstocking. Train staff in sustainable inventory practices. Continually review and improve processes for eco-efficiency.

Organizations can execute supportable stock administration rehearses in various ways, including lessening stock levels, reusing items and materials, reusing materials, and recuperating assets from squander.