Practical sense to know the basics of effective entrepreneurship
Stocks love an individual approach to themselves, as money loves silence, and people have an individual, suitable system of motivation.
The object of management in logistics inventory management is SKU. Pay attention to the abbreviated English designation of the nomenclature position, which is written in capital letters. This is a way to show what is central or significant in this area of management, a way to draw attention to a key management object.
An individual approach to inventory management is the inventory management for each SKU of the nomenclature list of the place where stocks are stored. Any variant of combining SKUs into groups and applying for each SKU group a unified inventory management strategy gives the worst result in inventory management costs, although it reduces the amount of mathematical calculations to some extent, which allows using less computer computing power.
Each SKU is characterized by its unique or individual marketing, production, logistic and financial situation characterized by the following significant factors:
(1) average demand or average production consumption;
(2) the variability of instantaneous values of demand or average production consumption;
(3) storage costs for a unit of stock;
(4) average lead time for a replenishment order provider;
(5) the variability of lead time by a replenishment order;
(6) the required level of customer service from the stock;
(7) belongs to its category SKU according to the results of the ABC analysis of the SKU at the place of storage of stocks;
(8) refers to its group SKU according to the results of XYZ-analysis of stocks at the place of storage of stocks;
(9) other organizational, technological, marketing, production, logistics, financial and human significant factors peculiar to a particular enterprise, which must be taken into account when organizing effective inventory management.
Therefore, an individual approach that “Igor Chugunov’s Business Consulting” applies when training the logistics personnel of a particular enterprise consists, firstly, in researching the marketing, production, logistics and financial situation in order to identify all relevant factors that should be taken into account when organizing effective management SKU stocks.
The results of this study are described both in text and graphic drawings, for example, a graphical model of an enterprise’s logistical system is drawn in order to register all the storage locations of the stocks (warehouses) and material flows, since each storage location of the stocks is characterized by its own individual logistics situation and place of organization of effective inventory management.
A full description of the marketing, production, logistical and financial situation is provided to the customer to study and detect errors and lack of information in it, which allows to maximize the accuracy of the description of the situation “As is”.
Secondly, the next step in an individual approach is to request quantitative data on the marketing, production, logistical and financial situation of an enterprise using indicator (most important) SKUs, which are necessary for designing an individual, optimal and effective inventory management system for each SKU for further training. personnel on the management accounting data of the enterprise.
Thirdly, after performing the design and comparing the “How to” solution obtained with the “As is” situation, gross errors in the “As is” organization of inventory management are detected, which allows the staff to be trained on his own mistakes, and not on others’ mistakes. Such training is more productive, affecting each student.
Fourthly, the textbook of the corporate training event is written by me under the unique marketing, production, logistics and financial situation of a particular enterprise. In fact, it is a unique textbook on the organization of effective inventory management for a particular company’s SKU, which describes the As Is practice of inventory management and all effective organization management solutions in the most detailed and highly visualized way of drawing, tables, flowcharts and diagrams. “How to”. This tutorial is an excellent teaching tool, even if you don’t participate in a learning event, but do well with the tutorial. To the students I say this: “If you know how to read, and you know how to do this, and you have experience in inventory management, you are guaranteed success. You will be the best specialists in the organization of effective inventory management in the situation of your enterprise. ”
The individual approach described above was applied to dozens of enterprises and always gave a remarkable result in the form of high customer satisfaction from training.