Fundamentals of purchase & warehouses & methods of reducing losses at storage

Course Code: PM05

Course Objectives

  • Describe the basics of inventory management.
  • Describe different types of inventory models.
  • Calculate inventory levels using inventory models.
  • Fundamentals of Purchasing
  • Stock Control and warehouse Management models and techniques.
  • Appreciate the implication of the impacts of logistics & materials management & purchasing functions both internally & external to the organization.
  • Methods of Reducing Losses at Storages
  • Appreciate the importance of effective resources planning.
  • Learn how to effectively manage inventory utilizing selective inventory strategic policies.
  • To appreciate the impact of supply chain and inventory upon the profitability of the organisation.
  • Apply category management thinking.
  • Understand and apply: MRP, JIT, Kaizen, Kanban strategies.
  • establish effective inventory management controls
  • appreciate the importance of audit trails and transparency
  • apply risk management techniques to supply chain and inventory management
  • take away specific action plans to further develop their role and organisational benefit

 

Target Audience

  • Managers, executives and officers in Materials Management, Stock Control, Warehouse & Logistics, Inventory; Internal Auditors, Product Specialists, Stock-takers and Assessors whose functions and responsibilities are involved in one way or another in planning, organizing, controlling, management and supervision of inventory, material and stockholding in the organization.
  • Managers who want to gain a deeper understanding of the warehouse and inventory  play in a company’s overall business strategy

 

Course Outline

Day 1:  Fundamentals of Warehousing and Inventory

  • Introduction to Warehousing Management
  • Objectives of warehousing
  • The modern warehouse
  • The warehousing cycle
  • Problems and challenges in warehousing
  • Warehousing and inventory costs
  • Customer service in warehousing
  • Inventory Classification and Record Accuracy
  • Types of inventory
  • The ABC classification
  • Uses of the ABC classification
  • Inventory record accuracy
  • Reasons for poor accuracy
  • Periodic and cycle counting
  • Systems and methodology of counting
  • Knowing what is inside the warehouse
  • Knowing how much is inside the warehouse
  • Storage and Material Handling Systems
  • Layout of the warehouse
  • Size and shape of the warehouse
  • Storage utilization and organization
  • Types of storage systems
  • Fixed versus random location
  • Material handling equipment
  • Material handling equipment checklist
  • Improving the receiving/issuing material operations

 Day 2:  Supply Chain Management & Strategic Warehouse  

  • Role and importance of supply chain
  • Overview of supply chain functions within the organisation
  • Supply chain structures and reporting
  • The supply chain Compass – strategic assessment & improvement toolkit
  • Engaging with stakeholders
  • The strategic warehouse
  • Defining the role and responsibilities of the warehouse function
  • Utilizing the supply chain compass within the warehouse
  • Space allocation and product driven category management strategies
  • Inventory management strategies – including optimum stock levels, obsolete/slow moving stock
  • Effective forecasting and planning

 Day 3:

Effective Stock Control 

  • Security of Stores
  • Accurate Stock Records
  • Difference Between Stock Recording and Stock Control
  • Reasons for Holding Stock
  • The Effect of Stock Control on Working Capital
  • Cash Flow
  • Return on Investment
  • Stock Turnover
  • Stockholding Cost
  • Cost of Money
  • Running Costs
  • Wastage
  • Insurance
  • Administration
  • Total
  • Ordering Costs

Forecasting Future Demands

  • Demand Patterns
  • Trends
  • Seasonal Variations
  • Random Fluctuations
  • Sporadic Demand
  • Mixed Demand
  • Moving Average
  • Weighted Moving Average
  • Exponential Smoothing
  • Tracking

When to Order

  • Safety Stocks
  • Standard Deviation
  • Re-Order Levels
  • Service Factors

Systems of Stock Control

  • ABC Analysis
  • Quantity Based Systems
  • Time Based Systems
  • Differential Stock Control
  • Consignment Stock
  • Vendor Maintained Inventory

Stocktaking

  • Reasons
  • Periodic
  • Continuous
  • Treatment of Discrepancies

Day 4: Materials Management

  • Apply the role of Materials Management in the proper tracking of different goods within an aviation organization which represent a direct financial value for a business
  • Distinguish Quality control, ensuring products are of high and consistent value, which is a major part of materials management
  • Understanding of the Hybrid strategy relative emphasis map
  • Illustrate how Shrinkage can be reduced through effective inventory
  • Formulate, plan and organize formal procedures for making stock decisions
  • Explain, discuss and review safety stock levels and order points
  • Apply and improve min/max systems and settings
  • Using material forecasts
  • Cataloguing materials for effective buying process
  • Developing Bills of Material for effective parts management

Day 5: Purchasing Management

  • Purchasing Management Principles and Techniques
  • Business Communication
  • Supply Chain Management
  • Purchasing Practice
  • Purchasing and Stock and Stores Control
  • How to report purchasing performance metrics to senior management
  • How to prioritize commodities that the purchasing department will source
  • How to create a Purchasing Dashboard
  • Strategies for using templates to improve productivity and reduce problems
  • How to develop purchasing policies and procedures
  • How to establish a standard sourcing process

Day 6:

  • Effective Inventory Planning and Control
  • Show that Inventory management and supply chain management are the backbone of any business operations
  • Appreciate that Inventory management requires constant and careful evaluation of external and internal factors and control through planning and review
  • Understand Enhanced customer service concepts where manufacturers agree to manage and hold inventories at their customers end and thereby effect Just In Time deliveries
  • Understand the policies of VMI – Vendor Managed Inventory, JIT – Just In Time and ECR – Efficient consumer response
  • Setting comprehensive inventory goals and objective
  • Effecting a rationalization strategy
  • Calculating and evaluating carrying costs and economic order quantity theory
  • Establishing a Strategic Focus with Pareto Analysis on Cost
  • Improving material identification and coding
  • Creating best practices in the physical control of materials
  • Measuring record accuracy and improving cycle counting systems

Day 7:  inventory and warehouses Polices

  • Inventory Management Policies (IMP)
  • Stock Control & Accounting (SCA)
  • Stock Identification System (SIS)
  • Managing Inventory Level (MIL)
  • Inventory Control Mechanism (SCM)
  • MRP, JIT & ERP (MJE)
  • Managing Physical Inventory (MPI)
  • Warehouse Operation Process Control ISO 9001: 2000 Quality Management System (ISO)
  • Inventory Valuation & Assessment (IVA)
  • Financial Inventory Management (FIM)

Day 8: Methods of Reducing Losses at Storages

  • Correct Material Handling Equipment
  • Reducing Manual Touch Points
  • Making the Decision to Move Forward 

Day 9:

  • Warehouse and inventory best practices
  • discussion

Day 10:

  • Workshop and case study’s
  • Exam for Candidate + Certificate


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Date & Location

Date : 14 April 2019

Duration : 5 days

Place : Kuala Lumpur

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Date : 16 June 2019

Duration : 5 days

Place : Istanbul

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Date : 01 December 2019

Duration : 5 days

Place : Manila

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