For businesses which manufacture and sell products, the management of the inventory which they own is critical to the success of the business. Identification of different types of inventory and implementing performance metrics to measure our inventory are discussed in this module.
The term supply chain is often misunderstood and misused. By looking at the complete extent of the supply chain, we can see how important it is to plan effectively.
Inventory is categorised according to its use. We look at different types of inventory and how they impact of the supply chain.
Inventory has value. Every item of inventory that we own was purchased or produced in our factory and has cost associated with it. Understanding the monetary value of inventory helps us to appreciate why it is important to take care of it.
Inventory is purchased for a reason, either to support the manufacturing process or to have sufficient products to sell. We examine these reasons in detail.
Inventory has a monetary value to our business, and we should actively avoid having to dispose of, and therefore write-off, any inventory in our care
A Bill of Material is a recipe which tells us how to manufacture a product. The BOM tells us what components are needed to make our finished product and the accuracy of these is vitally important.
Inventory exists in every part of our supply chain, with our suppliers, with our distributors and in the retail stores. This lesson looks at how we measure all this inventory throughout the supply chain.
There are standards that we can use to measure how our inventory is performing. This helps us to manage our inventory levels better and monitor how much return we are getting on the money we spent to purchase or manufacture our products.
This course is available as a digital learning course to those who want to improve their career opportunities through education. You can be located anywhere in the world and will be supported through our learner management system.
This course consists of 8 downloadable lessons, 8 quizzes and 2 practical assignments. You can download your lessons onto any device such as a computer, tablet or smart phone.
Speak to us about other methods of training delivery and corporate customisation Tel: +27 10-0010283 Email: Enquiries@bizzco.co.za
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International Accreditation: CILT – The Chartered Institute of Logistics and Transport
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