Complete Story
10/11/2024
023. Balancing Customer Service and Your Inventory Investment While Maximizing Profitability (afternoon)
Instructors: Jon Schreibfeder
Level of Complexity: Intermediate
1:30 PM - 4:00 PM
The goal of effective inventory management is to meet or exceed customers’ expectations of product availability while maximizing your net profits. And when you stock an item, you are making a commitment to have that item available, in reasonable quantities, for immediate delivery. Unfortunately, good forecasts and lead times are not enough to ensure consistent product availability. There will always be situations where you will sell more than you planned to, or you experience a delay in receiving a replenishment shipment. But how do you deal with the exceptional expectations? In this session we will explore developing an effective balance between meeting customer expectations and maintaining a reputation as a reliable supply by effective safety stock (i.e., reserve inventory) planning.
Topics will include:
- Managing your customers’ expectations of product availability.
- Different ways of calculating reserve inventory or safety stock and determining the most appropriate method for your specific situations.
- The effect of more or less safety stock on customer service, profitability and your inventory investment.
- Determining where you can reduce safety stock without harming customer service.
- How you can increase customer service and reduce backorders at the lowest possible cost.
Learning Objectives:
- Establishing customer service level, inventory investment and profitability goals.
- Fine tuning replenishment parameters to achieve your goals.
- Understand how to monitor your performance and make appropriate adjustments when needed.
Bookstore
Value-Added Selling (4th Edition)
Paul Reilly & Tom Reilly
“Value” is about more than just price. Good salespeople understand that and know what differentiates their products from that of competitors. Developments in technology, including price comparison apps and search engines, now provide consumers with more information than ever, making it much harder to value and sell your product. Additionally, millennials, who now comprise the largest population in the workforce, prefer to do things differently than prior generations. This updated fourth edition of Reilly’s classic guide examines the latest trends and technology that have impacted the market and provides expert advice on leveraging current technology to increase sales.
Value-Added Selling, 4th edition offers proven strategies and tactics to help you not only close more sales but improve repeat business without compromising on price. You’ll learn how to anticipate the needs, wants, and concerns of buyers from the very beginning of the sales process. The book shows how to compete more profitably by selling value, not price. Visit www.TomReillyTraining.com for more information on this important message.
