 Sports related activity divided into teams

 Inventory refers to all the items, goods,

merchandise, and materials held by a
business for selling in the market to earn
a profit.
 Example: If a newspaper vendor uses a
vehicle to deliver newspapers to the
customers, only the newspaper will be
considered inventory.
 Inventory management refers to the
process of ordering, storing, using, and
selling a company's inventory.
 This includes the management of raw
materials, components, and finished
products, as well as warehousing and
processing of such items.
 Consider a manufacturer of desktop
computers who receives the major
components from different suppliers
across the globe. Upstream supply chain
activity (supply chain activity which is
carried out before the manufacturer
receives components).
 Upstream operations are those in which
the materials flow into the organization.
 Downstream operations are those in
which materials (mostly in the form of
finished products) flow away from the
organization to the customers.
 Supplier 1 supplies the display units
 while Supplier 2 produces the keyboard
 Supplier 3 produces the mouse
 and Supplier 4 produces the hard drive.
 Downstream (activity after the
 manufacturing activity) the assembled
computer equipment is distributed direct
to customers with others distributed
through a retailer.
 True or lie – 2 right answers and 1 wrong
answer
 It is also known as stock control
 It is the process of ensuring the right
amount of supply is available in an
organization. With the appropriate
internal and production controls.
 Inconsistent Tracking:
Using manual inventory tracking
procedures across different software and
spreadsheets is time-consuming,
redundant and vulnerable to errors.
 Warehouse Efficiency:
Inventory management controls at the
warehouse is labour-intensive and
involves several steps, including
receiving and putaway, picking,
packing and shipping..
 Inaccurate Data:
need to know, at any given moment,
exactly what inventory you have.
 Changing Demand:
Customer demand is constantly shifting.
Keeping too much could result in
obsolete inventory you’re unable to sell,
while keeping too little could leave you
unable to fulfill customer orders.
 Limited Visibility:
When your inventory is hard to identify or
locate in the warehouse, it leads to
incomplete, inaccurate or delayed
shipments.
 Manual Documentation:
Managing inventory with paperwork and
manual processes is tedious and not
secure.
 Problem Stock:
Perishable and fragile stock need
specialized plans for care and storage.
And high-value inventory needs specific
loss-prevention strategies and inventory
controls.
 Supply Chain Complexity:
Global supply chains shift daily, placing a
burden on your inventory planning and
management operations.
 Managing Warehouse Space:
 Insufficient Order Management:
running out of inventory.
 Increasing Competition:
 Evolving Packaging:
Compostable packaging—or removing
packaging all together—to reduce
waste presents new obstacles for
warehouse design and storage.
 Expanding Product Portfolios:
 Overstocking:
 Inventory Loss:
The loss of inventory due to spoilage,
damage or theft.
Poor Production Planning:
Lack of Expertise:
 Poor Communication:
 Inefficient Processes:
 Inadequate Software:
 Centralized Tracking:
Consider upgrading to tracking software
that provides automated features for re-
ordering and procurement.
Transparent Performance:
Measure and report warehouse
performance metrics like inventory
turnover, customer satisfaction and order
processing speed to overcome
warehouse inefficiencies.
 Stock Auditing:
Frequent stock auditing processes, like daily
cycle counting, reduce human error and
provide more accurate, up-to-date
inventory data for managing cash flow.
Demand Forecasting:
Some inventory management platforms
include demand forecasting tools. This
feature integrates with accounting and
sales data to help you predict demand and
schedule orders based on shifting customer
preferences.
 Add Imagery:
 Add images with product descriptions in
your inventory database to improve
purchasing and receiving process enhance
accuracy and prevent misplaced
inventory.
 Go Paperless:
Give employees the right inventory tools for
the job. They need software to replace
manual inventory documentation, and
paperless transactions for invoices and
purchase orders.
 Preventive Control: Implement stock
control systems to manage problem
inventory, such as perishable stock,
fragile equipment or obsolete materials.
Perform regular preventive maintenance
on machinery and equipment stock in
storage if required by the manufacturer.
 Measure Service Levels: Monitor and
track supplier data, such as shipment
errors, damaged or defective products
and missed delivery appointments.
 Optimize Space: Use inventory
management systems with warehouse
management features to optimize
storage space and inventory flow.
 Automate Reorders: Backordered
inventory delays production and creates
poor customer experiences. Use
inventory management software to set
automatic reorder points based on
preset stock levels and current
availability to avoid overselling.
 Safety Stock: Maintain safety stock to
offset supply chain disruptions and help
manage increased lead times due to
shifting international competition for raw
materials
 Classify Inventory: Create inventory
classifications to manage changing
trends, such as packaging initiatives to
reduce plastic waste.
 Multi-Location Warehousing: Use multi-
location warehouse management features
to track and control expanding inventories.
 Leverage Lead Times: Take lead times into
account when placing orders for high-
demand stock. Track and manage your
high-demand inventory using cycle
counting data to set automatic reorder
points and average lead time to preventing
stockouts.
 Reduce Human Error: Use inventory
control processes like blind receiving with
barcodes and mobile scanners to
prevent human error.
 Plan Demand: Use an inventory
management system with advanced
demand forecasting and reporting
features to prioritize your top inventory.
 Subcontract Expertise: Consider
outsourcing to an expert in inventory
management. Contract in-person
training and provide online support to
help employees follow best practices for
working with technical inventory
management software features.
 Dashboard Collaboration: Introduce
dashboards with simple interfaces that
show real-time inventory data.
 Productivity Tools: All the information
you need about your inventory can be in
your pocket.
 Update Platforms: Upgrading to a cloud-
based inventory management platform
doesn’t just give all the latest features.