10 key issues for evaluating inventory

1. Forecasting process. What is the current forecasting process and who is involved in setting targets?
2. Information technology. Identify the current IT system(s) employed by the company and are regular upgrades and improvements taking place with partners?
3. Collaboration. How much does collaboration take place between the various internal and external partners?
4. Items overstocked and out of stock. Which items are over and out of stock and what are the reasons? Is there a pattern emerging in the data?
5. Expired and out of date. What are the current product shelve life’s and what is the affect on the forecasting?
6. Safety stock factor. Are you using a safety stock factor and is it the same for all product SKUs and classes?
7. Product life cycle. What is the current product life cycles and how do the various SKUs differ from one another?
8. Lead times. Identify the product lead times and are there potential bottlenecks?
9. Process flow and visibility. Do you have a clear understanding of the inventory flow and are there potential opportunities to reduce time wastage?
10. Continuous evaluation. Is continuous evaluation and tracking taking place and what are the required KPIs?