The Resource Kit includes:
The pack will contain definitions, templates and detailed instructions on how to use the material. Line of best fit (Forecast) – We use a number of forecast formulas to calculate the 'Line of Best fit' which reflects future demand, based on historical data.
- X Factor items - Using the historical demand, we will identify SKU's that typically show extremely erratic usage profiles which are typical of launch product, where it is difficult to predict the initial off-take.
- Safety Stock – Based on your inventory policy of 'make to stock' or 'make to order', we are able to calculate your level of safety stock for each SKU. This will be translated into units and cost.
- Inventory classification and analysis – You will be able to classify your inventory based on rules that you determine. These can be based on value or qty, similar to the '80/20 rule'. Once classified, you will be able to calculate the inventory carrying cost for SKU along with savings by implementing a stock reduction strategy.
- Excess Inventory – This determines true excess inventory based on define rules that you apply using our weeks cover calculation for each SKU or group of products 'Family' This is represented in units and cost at an SKU level.
- What if scenarios – The tool will assist you to optimise your inventory investment by changing inputs at an SKU level such as lead-time, level of sales, target service level etc.
- Open to Buy – This spreadsheet calculates the desired level for future orders based on your defined budgets at a number of levels from SKU through to order level.
- Warehouse productivity – By analysing your sales performance at an SKU level, this tool will assist the warehouse in improving product layout, utilisation of pick-face, replenishment and put-away resources, which improves speed to floor.