Companies often see inventory residing in a single bucket. A bucket that is typically too full, rather than two buckets, one that is unproductive and one that works to support the business; one that has unproductive capital and the other with actively deployed working capital! This course is about managing the ratio between unproductive and working capital in the form of inventory. A key to managing inventory is the establishment of systematic policies and procedures to govern how inventory is deployed and managed.
By attending this course, you will learn how to establish inventory governance processes that will enable your company to:
- Effectively segment and communicate the difference between unproductive vs. working inventory.
- Develop a common language to describe inventory and its purpose within the supply chain.
- Participate in hands-on activities designed to help you understand the actions, drivers, and levers your company can use to maximize the value you get from the inventory you hold.
- Develop an inventory governance policy that you can use to work with your leadership team to drive real change within your supply chain.
What Is the Inventory Governance Course?
This fast-paced 2-day course focuses on the practical. Participants leave the workshop with a prioritized implementation plan for improving Inventory Governance in their company based on their data and information. This enables participants to identify ideal inventory targets during the workshop*. Roles and responsibilities for proposing and approving inventory targets are also defined. Participants also learn ways to identify the root causes of inventory issues and correct them.
*(confidential information is not shared in the public courses, but used as homework)
What You Learn
Your instructors have 50+ years of combined industry experience implementing and enhancing inventory management practices within companies. Their objective is to bring you up the learning curve so that you can make an impact immediately upon completing the course.
Participants will learn:
- The six types of inventories, and the THREE types you can begin to control Right Now.
- Ways to identify and correct root causes of short and longer-term issues, causing actual inventory to be, more or less, than the targets.
- How to develop preliminary inventory targets and test for reasonability based on your data and information. (A key deliverable from the course is inventory targets to recommend.)
- How to develop an implementation path for Inventory Governance that includes roles and responsibilities. (A key deliverable from the workshop is a preliminary implementation plan.)
- How to develop the framework of an Inventory Governance policy. (A draft policy is a deliverable from the workshop.)
Value of the Inventory Governance Course
Participants leave the workshop with immediate action plans to control their company’s inventory better, knowing three types of inventories they can impact immediately, with a Plan to control the remaining inventory via a Policy, a structured way to determine the optimal inventory levels that support the company’s business strategy and goals.
Companies with effective Inventory Governance realize improved operating margins, cash flow, and expected working capital improvements. They also increase sales revenue and market share – because products are better aligned to be available to sell and ship.
Business leaders also use the Inventory Governance Process to set appropriate inventory targets for the long term. This proactive decision-making positions the company with the levels of inventory needed for products at the end of life and during product launches.
The Instructors stay engaged after the workshop by providing agreed-upon support to:
- Follow up on progress in implementing inventory governance
- We can also provide one-on-one and small-group coaching to improve the effectiveness of Inventory Governance, validate that the inventory targets are driving the desired results, and determine the best ways to minimize slow-moving and obsolete inventory
- We can address change management issues, including skills and behaviors and process adaptation
- We can certainly provide executive coaching to address cross-functional alignment issues to ensure the inventory governance policy is completed and implemented