Complete Story
10/11/2024
023. Balancing Customer Service and Your Inventory Investment While Maximizing Profitability (afternoon)
Instructors: Jon Schreibfeder
Level of Complexity: Intermediate
1:30 PM - 4:00 PM
The goal of effective inventory management is to meet or exceed customers’ expectations of product availability while maximizing your net profits. And when you stock an item, you are making a commitment to have that item available, in reasonable quantities, for immediate delivery. Unfortunately, good forecasts and lead times are not enough to ensure consistent product availability. There will always be situations where you will sell more than you planned to, or you experience a delay in receiving a replenishment shipment. But how do you deal with the exceptional expectations? In this session we will explore developing an effective balance between meeting customer expectations and maintaining a reputation as a reliable supply by effective safety stock (i.e., reserve inventory) planning.
Topics will include:
- Managing your customers’ expectations of product availability.
- Different ways of calculating reserve inventory or safety stock and determining the most appropriate method for your specific situations.
- The effect of more or less safety stock on customer service, profitability and your inventory investment.
- Determining where you can reduce safety stock without harming customer service.
- How you can increase customer service and reduce backorders at the lowest possible cost.
Learning Objectives:
- Establishing customer service level, inventory investment and profitability goals.
- Fine tuning replenishment parameters to achieve your goals.
- Understand how to monitor your performance and make appropriate adjustments when needed.
Bookstore
The Upside of Down Times: Discovering the Power of Gratitude
Lisa Ryan
Harness the Power of Gratitude One of the downsides of life is that we rarely have to deal with an overabundance of gratitude. Most of us tend to focus on the negative. We don't receive nearly as much acknowledgment as we would like, and we don't give as much recognition as others deserve. Now for the upside! When we learn to harness the power of gratefulness, we can make a major positive difference in so many areas of our lives, as well as the lives of those around us-and The Upside of Down Times is your first step toward making that happen. "I highly recommend this book if you want to be happier, healthier, and wealthier. I read this book in one sitting and began implementing some of the ideas the next day. The ideas are easy to implement but powerful in their results." -Jack Canfield, Co-creator of the Chicken Soup for the Soul series and The Success Principles
