Training Schedule

SC-02 - Best Practices and Strategies for Inventory Management

Transform your inventory into a competitive advantage by learning cost-saving and efficiency-driven best practices.

Duration: 6 hrs

Course Fee per Participant: P4,200

Time: 9 am – 4 pm

Webinar Schedule (Q4 2025): Oct 18 (Sat); Nov 15 (Sat)

Webinar Schedule (Q1 2026): Jan 17 (Sat); Mar 14 (Sat)

MODULE 1: INVENTORY MANAGEMENT FUNDAMENTALS

• Definition and Purpose of Inventory – Introduces inventory as a strategic resource used to balance supply and demand. Inventory serves as a buffer to maintain operational continuity and support service levels.

• Types of Inventory – Explains classifications like raw materials, work-in-progress, finished goods, and MRO. Understanding each type is essential for proper tracking, costing, and replenishment.

• Inventory's Role in the Supply Chain – Describes how inventory supports customer service, production, and logistics. Inventory acts as a stabilizer that bridges gaps in lead times, demand spikes, and supply disruptions.

• Common Inventory Problems in PH – Highlights local challenges such as overstocking, manual tracking, and limited space. Also touches on systemic issues like data inaccuracy and fragmented planning.

MODULE 2: INVENTORY CLASSIFICATION & PLANNING

• ABC Analysis and Segmentation – Helps teams prioritize inventory items based on value and importance. Enables focus on high-impact items to improve control and reduce carrying costs.

• Safety Stock and Service Level Planning – Covers how to protect against demand variability and stockouts. Discusses how to calculate and adjust buffers based on lead times and criticality.

• Turnover Ratios and Inventory Days – Teaches how to measure inventory efficiency and identify slow movers. These metrics help uncover excessive stock and evaluate inventory health.

• Forecasting Basics – Introduces simple methods to predict inventory needs based on sales or usage history. Discusses moving averages, seasonality, and collaborative planning.

MODULE 3: INVENTORY CONTROL SYSTEMS & TECHNIQUES

• EOQ and Reorder Points – Explains how to set optimal order quantities and trigger points. Ensures cost-effective ordering while minimizing the risk of stockouts.

• Min-Max Replenishment – Covers systems to maintain stock within upper and lower thresholds. Helps standardize replenishment and reduce stock variability.

• Cycle Counting vs. Physical Inventory – Compares frequent sampling with full periodic counts. Emphasizes continuous accuracy and less operational disruption.

• Control Policy Writing – Guides participants on documenting clear inventory policies. Ensures accountability, consistency, and adherence to best practices.

MODULE 4: ACCURACY, AUDITS & RECONCILIATION

• Causes of Stock Discrepancies – Identifies reasons for mismatches like theft, damage, and data errors. Builds awareness to proactively manage and reduce variance.

• Stock Take Procedures – Walks through planning, executing, and validating inventory counts. Includes team roles, cut-off procedures, and verification protocols.

• Reconciliation Methods – Teaches how to investigate and correct variances. Highlights documentation, approval flows, and reporting mechanisms.

• Root Cause Analysis – Introduces basic problem-solving tools to prevent recurring issues. Reinforces the discipline of continuous process improvement.

MODULE 5: INVENTORY COSTING & FINANCIAL IMPACT

• Types of Inventory Costs – Covers ordering, holding, and shortage-related costs. Helps participants understand trade-offs between stock availability and financial efficiency.

• Cost of Excess Stock – Highlights space, obsolescence, and capital tie-up. Connects overstocking with working capital strain and reduced flexibility.

• Valuation Methods (FIFO, LIFO, Average) – Introduces common costing systems used in finance. These affect profit reporting, tax liabilities, and audit compliance.

• Working Capital & Cash Flow – Links inventory levels to liquidity and profitability. Encourages participants to manage inventory as a financial asset.

MODULE 6: TECHNOLOGY & SYSTEMS IN INVENTORY

• WMS Overview – Introduces warehouse management systems and key features. Explains how automation supports inventory accuracy, real-time tracking, and task efficiency.

• Barcoding and RFID – Explains technologies that improve tracking and reduce manual errors. Covers how to implement scanning tools and reduce mis-picks.

• Real-Time Visibility – Covers dashboards and mobile tools for live inventory updates. Promotes informed decision-making through data-driven insights.

• System Integration – Describes how inventory connects with ERP, POS, and eCommerce tools. Emphasizes the importance of seamless flow between sales, purchasing, and warehouse modules.

MODULE 7: LEAN INVENTORY & ALTERNATIVE MODELS

• JIT Inventory – Discusses how to reduce stock and rely on timely deliveries. Helps reduce carrying cost while improving responsiveness.

• Vendor Managed Inventory (VMI) – Introduces supplier-managed stock replenishment. Encourages collaboration with key suppliers to improve lead times and visibility.

• Buffers and Decoupling Points – Teaches where to place inventory to absorb uncertainty. Supports production stability and smoother flow of materials.

• Lean Inventory Tools – Shows how to apply lean thinking to minimize waste. Tools include 5S, Kanban, and value stream mapping for better inventory discipline.

MODULE 8: INVENTORY STRATEGY, METRICS & IMPROVEMENT

• Inventory KPIs – Introduces key performance indicators like accuracy, turnover, and fill rate. Encourages use of scorecards and dashboards for visibility.

• Inventory-Business Alignment – Connects inventory plans to overall strategy and customer expectations. Encourages collaboration across supply chain and finance.

• Continuous Improvement Tools – Applies Kaizen and PDCA for long-term inventory improvement. Supports culture-building for process ownership and accountability.

• Cross-Functional Collaboration – Emphasizes teamwork between inventory, procurement, and sales functions. Drives shared targets and proactive inventory planning.