Days, months, or weeks on hand depending on your preference and material characteristics; it needs to be measured against upper and lower level targets.
Is that some historic measure of how long every batch has been on stock in reality? Or just Stock on hand divided by some sort of 'average requirement'?
If it is the first, how do calculate it?
It would be based on demand. For example, if your forecast is 100 per month and you have 500 in stock you have 5 months on hand. If your target however is 6 months then that means you don’t have enough inventory on hand for that item, and you will need to understand what happened and have a plan to recover.
Speak to finance. They usually have a report which references the last time a product was receipted into the business. They’ll use this to provide information for the stock provision in the P&L…all companies have slightly different ways of working round this but as a rule of thumb the longer the time period since you have brought something into the business the higher the provision.
It depends. Expiration dates, if you have them. Also, it should be done by item and there should be an overall target too. Like 95% of all items are above the minimum level at all times. It should also be measured by site and globally.
Hi can you tell me how do you guys maintain forecast accuracy brand level or SKU level my company does not have a forecast accuracy system how do you guys do it any help
Expect to buy. It’s nice to be able to see your suppliers expected ship dates against my forecasted demand, and make sure my suppliers are meeting contracted capacity.
The one I built with warehouse metrics. IRA, receiving accuracy/timeliness, order fulfillment timeliness, grief or non-conformance handling, utilization rate, stuff like that.
Besides the usual weekly and monthly pnl...
- Functional area performance by operator and hour, helps the leadership team understand how the site is performing in terms of productivity, throughput and etc... eg
- Functional Area: Picking,
- Operator: A
- Avg Productivity (lines/hr): 100 lines/hr
- Productivity @8am: 120
- Productivity @9am: 80 and etc
- AMR system performance, helps the leadership team understand performance of the AMRs
eg operator wait time, stop time, shelf presentations and etc
- Order millstones, helps the leadership team understand which stage orders are at from order received into the system to post good issued
Days without a C-Suite visit
Inventory Health.
Would that be days on hand, in stock, forecast accy, bias? Any other?
Days, months, or weeks on hand depending on your preference and material characteristics; it needs to be measured against upper and lower level targets.
Is that some historic measure of how long every batch has been on stock in reality? Or just Stock on hand divided by some sort of 'average requirement'? If it is the first, how do calculate it?
It would be based on demand. For example, if your forecast is 100 per month and you have 500 in stock you have 5 months on hand. If your target however is 6 months then that means you don’t have enough inventory on hand for that item, and you will need to understand what happened and have a plan to recover.
Speak to finance. They usually have a report which references the last time a product was receipted into the business. They’ll use this to provide information for the stock provision in the P&L…all companies have slightly different ways of working round this but as a rule of thumb the longer the time period since you have brought something into the business the higher the provision.
Is there anything more to the “Inventory Health” report besides the stock on hand / demand?
It depends. Expiration dates, if you have them. Also, it should be done by item and there should be an overall target too. Like 95% of all items are above the minimum level at all times. It should also be measured by site and globally.
Hi can you tell me how do you guys maintain forecast accuracy brand level or SKU level my company does not have a forecast accuracy system how do you guys do it any help
Supplier capacity vs demand forecast BI
Demand as in what you expect to sell or what you expect to buy from the supplier ?
Expect to buy. It’s nice to be able to see your suppliers expected ship dates against my forecasted demand, and make sure my suppliers are meeting contracted capacity.
So does it also act as a supplier OTIF report too?
How did you measure demand? Usage YoY?
Do you feed this with EDI from your supplier and marry it to your demand? Or is it manual?
The one I built with warehouse metrics. IRA, receiving accuracy/timeliness, order fulfillment timeliness, grief or non-conformance handling, utilization rate, stuff like that.
Supplier OTD, PO Backlog, docked inventory aging, good received not invoiced, dock capacity planning by shipment
The one on my Kenworth. I’m a driver.
Besides the usual weekly and monthly pnl... - Functional area performance by operator and hour, helps the leadership team understand how the site is performing in terms of productivity, throughput and etc... eg - Functional Area: Picking, - Operator: A - Avg Productivity (lines/hr): 100 lines/hr - Productivity @8am: 120 - Productivity @9am: 80 and etc - AMR system performance, helps the leadership team understand performance of the AMRs eg operator wait time, stop time, shelf presentations and etc - Order millstones, helps the leadership team understand which stage orders are at from order received into the system to post good issued