Inventory is one of the most tangible and costly aspects of doing business. It must be managed to reduce operating expenses and maximize profits. Successful inventory management balances the costs of inventory with the benefits of inventory. Implementing Inventory Management practices helps an organization to answer difficult questions such as:

• How do we keep stock low without sacrificing service or performance?
• How do we obtain lower prices through volume purchasing without maintaining too much low-volume inventory on-hand?
• How do we keep stock on-hand without getting caught with obsolete material?

In order to answer these questions, RNR Consulting approaches inventory management through a four step process:

1. Data Collection and Analysis
2. Inventory Management Assessment
3. Recommendations
4. Training

During the data collection phase, RNR Consulting reviews SOP documentation, shadows inventory processes and interviews staff. The inventory management assessment includes activities such as conducting an ABC and XYZ analysis, determining reorder points and Economic Ordering Quantity, reviewing the existing inventory numbering system, evaluating the inventory tracking system and performing an inventory count. Following the assessment, RNR Consulting documents findings and recommendations along with a detailed action plan on how to accomplish the recommendations. Lastly, RNR consulting conducts training and communication sessions. Step four is often times overlooked but it is here where an organization can begin holding employees accountable to the inventory management system as well as beginning to monitor and track performance.

Sample Case Studies:

Cleveland Public Power - Inventory Management Assessment

Gwinnett County Department of Water Resources - Inventory Management Assessment

Northeast Ohio Regional Sewer District - Inventory Counts

Toledo Area Transit Authority - Inventory Assessment and Maximus Training