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