You're managing inventory discrepancies. How do you decide between high-value and low-value items?

ABC cyclical inventory, supported by technology. Ongoing process monitoring and modifications/adjustments as necessary, seeking RCA to constantly improve inventory control and reliability.

To normalize at sku level, do SKU ABC classifications by multiplying cost and volume (usage). Then drive relative % of each sku against grand total of all skus. Finally rank sku relative % from high to low and drive cumulative % and clip skus that drive 80%, 90% etc.. Set calculated safety stocks appropriately linked to desired service levels for these sku groups and calculate cost of safety stock to be communicated cross functionally and to be approved by Finance and factored in the budget. This way, you invest in inventory cost linked to business profile and supported financially while addressing desired customer order fill rates.

Reconciling inventory is crucial for maintaining accurate records. 1 Determine a Schedule: Decide whether you’ll conduct full inventory counts annually, semi-annually, or use a cycle counting method 2 Gather Necessary Documentation: Collect relevant documents such as purchase orders, sales receipts, and previous inventory counts. 3 Conduct the Count: Physically count the items in your warehouse or storage area. 4 Compare Physical Count to Records: Compare the actual counts with the inventory records in your system. 5 Identify Discrepancies: Investigate any differences between the physical count and records. 6 Implement Preventive Measures: Put processes in place to minimize future discrepancies.

I agree with the ABC analysis which is an important technique when managing warehouse stock or materials. It includes a number of supply chain functions such as sourcing, procurement, receiving, and inventory mgmt. I would suggest to put your ABC analysis into three categories (A, B, and C) to determine levels of importance/value of your materials. Lets explain a little deeper, so you can have a clear understanding of each. Category A are items that you count daily and tightly controlled, Category B are items counted bi-weekly regularly and loosely controlled and Category C items are counted quarterly and controlled loosely. ABC inventory classification is a great tool for successful inventory management and I highly recommend it.

il est essentiel de partager des perspectives uniques et des insights pratiques. L'Impact de la Gestion d'Inventaire sur la Réussite d'un Événement Optimiser le Merchandising par une Gestion d’Inventaire Efficace Les Défis de la Gestion d'Inventaire dans l'Industrie des Événements

Categorize your inventory parts based on high value / high importance/risk. Enlist ABC items. Make schedule to conduct frequent counting for A. Reconcile the items with inventory. Continuously improve Relocationing after RCA. Training of staff will contribute a lot once system is smooth.

When managing inventory discrepancies, it’s important to prioritize actions based on the value and impact of the items in question. Here’s how you might decide between high-value and low-value items High-Value Items Prioritize Investigation: High-value items should be investigated first because discrepancies in these items can significantly impact the financial health of the business. Detailed Analysis Conduct a thorough analysis to identify the root cause of the discrepancy. This might include checking recent transactions, reviewing supplier documentation, and inspecting physical inventory. Immediate Reconciliation Aim to reconcile discrepancies in high-value items quickly to prevent potential losses.

To manage inventory discrepancies, the method used is ABC analysis. Steps include: Identification and Classification: Classify items based on value and volume. Prioritize Inspection: Focus on high-value items (Category A) due to their significant impact. Implement Appropriate Policies: Use stringent control policies for Category A items and more flexible policies for Category C items. Example Case: If a company has 100 items, 20 of which are high-value (Category A), they should be inspected more frequently and in more detail compared to 50 low-value items (Category C).

My first check would go on what the client considers as priorities: Criticality versus Value. Then once you have this cleared out you see the FMS-M (Fast,Medium,Slow Movers) to identify where the issue stands. From there you can start analyzing the impact of the discrepancy, not only taking into account the value but also the delivery time as well as the impact on your production process. In my experience the analysis of the Fast movers is done more often then the slow or medium ones. Thus guaranteeing that no disrupt on the manufacturing process. The slow and medium movers analysis is done to reduce effectively the Storage cost. This has to be combined also with the settings of those materials on the system.

Si bien los artículos de alto valor son la representación de la empresa en su mayoría, es de suma importancia el contar con controles muy definidos para no presentar desabastecimientos que impacten en roll de la compañía. El cliente no va a dejar de consumir un artículo que es de su gusto, a la espera de que llegue al punto de venta. Eso da apertura a que la competencia sea elegida y nos quite el espacio. Nos afectaría de manera significativa en la parte económica y ya para cuando lo llevemos, seria muy tarde. Los equipos de planificación, producción, ventas y logística siempre deben estar en estrecha relación y comunicación para evitar que un escenario así, pueda llegar a pasar.

Risk prioritization in inventory should be based on the economic value and operational criticality of the items. High-value, high-turnover items represent a higher risk and need more stringent control systems, such as cyclical inventories and RFID technology. Low-value items, while less financially impactful individually, can affect operations if they are critical to the production process.

To mitigate this risk, businesses can implement strategies such as: 1. **ABC Analysis**: Classifying inventory into categories based on value and sales volume can help identify high-priority items that should be closely monitored and restocked promptly. 2. **Demand Forecasting**: Using historical data and market trends to forecast demand can aid in accurate inventory planning and replenishment, reducing the likelihood of stockouts. By prioritizing inventory management strategies to address the risk of stockouts, businesses can enhance customer satisfaction, minimize revenue loss, and maintain a competitive edge in the market.

To prioritise impact you need to focus on the items that have a higher impact on your operations because they contribute the highest percentage to turnover and also not loose focus those that have a high customer demand

Examinar los porcentajes de riesgo de sufrir daño de toda la mercaderia y evaluar su impacto en la operacion; con el proposito de tomar medidas preventivas.

High-value items typically carry a greater financial risk and can affect customer satisfaction if stockouts occur. Their discrepancies should be addressed promptly to ensure that business processes are not disrupted.

Una vez que hayas clasificado los artículos por valor, el siguiente paso es priorizarlos en función de los riesgos potenciales que representan para tu negocio. Los artículos de alto valor suelen conllevar un mayor riesgo financiero y pueden afectar a la satisfacción del cliente si se producen desabastecimientos. Por lo tanto, a menudo requieren atención inmediata para minimizar las posibles pérdidas. Por el contrario, los artículos de bajo valor pueden representar un riesgo financiero menor, pero aún pueden ser críticos para tus operaciones. Sus discrepancias deben abordarse con prontitud para garantizar que no se interrumpan los procesos institucionales. La clave está en implementar un sistema de gestión que permita identificar,

Customers tend to buy from the same vendors unless they encounter a quality problem or the price increases drastically. Once we notice a buying pattern we stock at least one release which helps a lot with unexpected spikes in usage.

It’s the forward thinking and effort into the analysis that makes your company special. It’s also why you have such a loyal customer base.

Here are some strategies to address this issue: 1. **Regular Audits**: Conduct regular physical inventory audits to compare actual stock levels with recorded inventory. This can help uncover discrepancies and inaccuracies that need to be addressed. 2. **Investigate Root Causes**: Analyze the reasons behind the discrepancies, such as errors in data entry, shrinkage, theft, or inadequate inventory control processes. Identifying the root causes is crucial to implementing effective solutions. 3. **Implement Inventory Control Procedures**: Establish clear inventory management procedures, such as barcode scanning, cycle counting, and regular reconciliations, to maintain accurate inventory records and reduce discrepancies.

Dès lors qu'on a la classification des articles , on n'adopte un système de contrôle permanent pour des articles de grande valeur sans pour autant négliger d'autres car un cumul important d'articles à petite valeur reste un problème

Si los controles de entrada y salida son bien robustos, no deberían existir diferencias de inventario, esto no deja de lado la necesidad de las validaciones de estos activos con frecuencia. Ahora, si por desgracia los conteos cíclicos reflejan diferencias en los controles, es necesario iniciar la búsqueda de la fuga. Para el ingreso se debe aplicar un doble conteo con personar diferentes. En el alisto tratar de ubicar en esa área un colaborador con un récord de alisto limpio, donde el error sea mínimo. Para la salida doble chequeo aleatorio para poder filtrar donde esta el inconveniente e ir tomando acciones correctivas.

If there is an industry-wide shortage creating recurring bottlenecks, consider holding more inventory of the scarce item(s). Do what you can to encourage engineers to use readily available parts in their designs, as well.

Monetary value doesn’t dictate actual value. There are some very low dollar items that have an extremely high impact on healthcare. Understanding the value to the process for inventory is more important than the dollar amount, and discrepancies can cause negative downstream effects. Understand what impact your inventory brings to the process to help you understand the impact of its discrepancies.

It is both important to analyze the impact on wider business but also to understand the route cause - regardless of value. Identifying patterns in inventory will often lead to identification of bigger issues which, once resolved, will prevent further loss of value in long-term.

As many others have contributed below in my opinion on the other hand, while low-value items may seem less critical individually, their impact can be significant in aggregate. Discrepancies in components or small parts can disrupt production lines, delay assembly processes, and cause cascading effects throughout supply chains. These disruptions not only increase operational costs but also jeopardize overall efficiency and customer satisfaction. Therefore, understanding the interconnectedness of these items within larger systems is crucial for effective inventory management.

Impact analysis involves evaluating the consequences of inventory discrepancies. High-value items directly affect the company's working capital and liquidity. Discrepancies in these items can lead to significant financial losses. Conversely, low-value items, despite being less impactful individually, can cause operational inefficiencies and indirect costs if not managed properly.

Direct Cost: Assess the direct monetary value of the missing or excess inventory. Example: If an item worth $5,000 is missing, it’s clearly high value. Indirect Costs: Consider additional costs such as lost sales, production delays, or increased shipping costs due to the discrepancy.

Analyzing the impact of loss and value receiving income is critical to assure that the quality of products are in stock for your consumers needs and must be handled on the frequency and customer satisfaction of each individual product in their own category.

De mon expérience aucun article n'est vraiment "faible de valeur" car ils se positionnent des fois comme des articles d'appel. Un écart de stock reste un problème.

Toda compañía trabaja para ganar y no para perder. Si algo esta provocando que la empresa no reciba las ganancias como corresponde, se deben aplicar controles minuciosos para identificar las fugas. El contar con equipos para la validación del inventario de alta exactitud, generan una importancia fundamental para poder contar con números los mas real posible. Un inventario sano, da confianza y permite siempre estar al tanto de como caminan los procesos y tener un espacio optimo para la toma de decisiones cuando asi se necesite. Lo que se mide, se puede controlar.

I would prioritize use historical data to understand past discrepancies and their resolutions. This can help in predicting the impact of current discrepancies. Also analyze trends over time to see if certain items or categories are more prone to discrepancies.

La frecuencia en los conteos del inventario de alto valor, cíclicos, validaciones de ingresos con doble certificación, contar con personal apto para los procesos, sistemas digitales de control, tablas de verificación para el inventario, equipos optimos para apoyar los procesos. Todo ese tipo de ayudas con las que se puedan contar, hace que los procesos se lleven bajo una mejor linea de control y nos permiten verificar los datos en vivo y actualizados para logrando cuidar los activos de mejor manera.

In managing inventory discrepancies, I assess item value, prioritize risks, and review frequency, drawing on my experience as a Pre-Owned Director and Business Development Specialist. High-value items, crucial to operations, get immediate attention, while low-value discrepancies, if frequent, indicate procurement issues needing prompt resolution. Analyzing the impact on the business helps allocate resources effectively. Implementing controls like stricter security for high-value items and improved inventory management for low-value ones is key. Continuous improvement, regularly updating practices to adapt to changes, ensures accuracy and efficiency in inventory systems

I would prioritize the value of the items by need for example if you are running an operation and say a conveyor belt goes and all your productivity comes to a halt, I would put high value on consumables that can stop your operation

Actually Process Disruption: Evaluate how the discrepancy affects business operations. Consider regulatory and compliance implications. High-value discrepancies might have greater compliance risks.

Consider investing heavily into technology to help the teams get ahead of inventory issues. Tools like Zoho, Katana, etc., can really help with identifying hard to detect issues before they become impactful.

No siempre el de más valor, es el que debo controlar más. Lo interesante de esto y el desafío constante qué tenemos en los inventarios, es la búsqueda constante entre en control y lo que podemos controlar. No cabe duda que si vemos un artículo o sku qué pondrá nuestro top one en los valorizados, nos esmeremos de inmediato por darle foco, pero una variable que se nos puede escapar, es la rotación, en palabras simples, en que entra y sale más de nuestro almacén. Algunas claves: Conteos Ciclicos. Pasar por zonas o códigos de formas periodista haciendo conteos. Auditorías a posiciones que figuran vacías (si usas Wms) Auditorías a recepciones y a algunos despachos. Y Mejorar los procesos...