INVENTORY/STOCK CONTROL
Live-Online Training: N220,000.00
Classroom Training: N 280,000.00
3 - 4 participants: 5% discount
5 or more participants: 10% discount
(Available also for Customised Training by Duration, Venue & Fee)
PROGRAMME DESCRIPTION
Ineffective inventory and stock control can lead to substantial financial losses, operational disruptions, and missed business opportunities. Organizations often struggle with maintaining optimal stock levels, resulting in overstocking or understocking, negatively impacting working capital and service delivery.
The lack of accurate inventory records and poor store security also lead to theft, wastage, and inefficiencies. Companies find it difficult to balance customer demand with financial prudence without sound forecasting, ordering strategies, and cost management.
This training addresses these challenges by equipping participants with practical tools, techniques, and systems for effective inventory and stock control.
TRAINING OBJECTIVES
By the end of this program, participants will be able to:
- Understand the strategic and operational importance of inventory in business performance.
- Maintain accurate and adequate inventory records for better planning and decision-making.
- Distinguish between stock recording and inventory control, and apply appropriate methods for each.
- Implement effective store security and safeguard inventory against loss, damage, and theft.
- Utilize financial insights and forecasting techniques to determine when and how much to order.
- Apply inventory management systems to reduce waste, optimize costs, and improve service levels.
LEARNING OUTCOMES
At the end of the course, participants will be able to:
- Identify the reasons for holding inventory and their implications for business operations.
- Apply forecasting methods to manage demand fluctuations and plan inventory levels.
- Calculate Economic Order Quantity (EOQ) and other ordering parameters to optimize stock levels.
- Analyze the financial impact of inventory on cash flow, working capital, and profitability.
- Apply modern inventory management techniques such as MRP, ERP, Just-in-Time, and Kanban.
- Distinguish between various inventory systems and implement appropriate ones for their operations.
- Conducted stocktaking, managed discrepancies, and disposed of obsolete and surplus stock effectively.
- Strengthen security and control measures for inventory to reduce risks and inefficiencies.
COURSE CONTENT
DAY ONE:
UNDERSTANDING INVENTORY AND DEMAND PLANNING
- A Business Case for Effective Inventory Management
- Why Inventory is Held
- The Role of Inventory in Business
- Forecasting Future Demands
- Demand Patterns
- Trends and Seasonal Variations
- Random Fluctuations & Sporadic Demand
- When to Order
- Safety Stock
- Re-order Levels
- Understanding Standard Deviation
- Service Factors in Stock Planning
DAY TWO:
OPTIMIZING ORDERING AND MANAGING INVENTORY COSTS
- How Much to Order
- Economic Order Quantity (EOQ)
- Lot Sizing and Forecasting
- Materials Requirement Planning (MRP) & ERP Systems
- Time Phasing and Explosion Routines
- Schedule Regeneration & Just-in-Time (JIT) Approaches
- Financial Considerations
- Inventory Turnover Ratios
- Inventory and Cash Flow Impacts
- Working Capital Management
- Profitability and ROI Analysis
- Managing Inventory Costs
- Ordering and Running Costs
- Cost of Money, Wastage, and Insurance Costs
DAY THREE:
INVENTORY SYSTEMS AND STOCK AUDITING
- Inventory Management Systems
- ABC Analysis
- Quantity-Based vs Time-Based Systems
- Differential Stock Control
- Vendor Maintained Inventory (VMI)
- Consignment Stock and Kanban Methodology
- Stocktaking and Reconciliation
- Objectives and Benefits of Stocktaking
- Periodic and Continuous Stocktaking
- Identifying and Treating Discrepancies
DAY FOUR:
REDUCING WASTE, ENHANCING CONTROL AND SECURITY
- Handling Obsolete, Redundant, and Surplus Stocks
- Causes and Identification
- Impact on Financials
- Disposal Strategies and Cost Recovery
- Inventory and Store Security
- Security Procedures for Stores
- Physical and System-Based Controls
- Preventing Theft, Damage, and Stock Pilferage
- Best Practices and Case Studies
- Inventory Control in High-Performance Organizations
- Interactive Group Activities and Action Planning