Functional Area
Inventory Management


Inventory, in most fulfillment systems, is the second largest expense next to transportation. Not only does inventory account for significant operating expenses (such as insurance, labor, storage space, etc.), it also involves a considerable “investment,” which could be spent in almost any other endeavor undertaken by a company. This training course investigates what inventory is, how it should be most effectively used to maintain a satisfied customer base and at the same time reduce costs/free up money for other initiatives, what the specific processes and analyses involved in inventory management are, and what the future holds for inventory management (new technology, supply chain relationships, etc.).

Certificate Learning Objectives :
At the end of the course, users should be able to:
• Describe inventory management’s place within the overall supply chain, and within fulfillment
• Discuss the profit impact of inventory
• Explain the critical drivers of inventory costs (size of the product line, number of inventory stocking locations, transportation costs, customer service philosophy, where in the supply chain inventory is held, supplier consistency, and forward buying/discounts)
• Highlight the activities involved in forecasting, ABC analysis, and cycle counting
• Discuss the types of inventory performance metrics and how to apply them
• Summarize the importance of information to effective inventory management
• Explain how technology is currently used in inventory management, and how it will likely be used in the future

Concepts taught include:
• Role of inventory in fulfillment
• Cost of inventory/drivers of inventory costs
• Role of forecasting in managing inventories
• Inventory performance metrics
• Role of technology within inventory management