Program Overview
This practical program provides supply chain, stores, and inventory professionals with proven frameworks to manage stock effectively using classification techniques like ABC (value-based), FSN (movement-based), VED (criticality-based), SDE (scarcity), and HML (cost-based). The course focuses on choosing the right mix of control strategies depending on the business context—whether it’s production support, maintenance inventory, or finished goods. Through real-life examples, analytics dashboards, and group exercises, participants will learn how to design replenishment policies, set review frequencies, and minimize carrying cost while ensuring availability for operations.
Features
- Classify inventory using ABC, FSN, VED, and hybrid models to prioritize controls
- Design dashboards and policies for inventory monitoring and control
- Apply differentiated stocking, review, and procurement strategies
- Reduce inventory carrying cost while improving availability and service level
Target audiences
- Inventory Controllers
- Warehouse Managers
- SCM Analysts
- MRO/Spare Parts Managers
Curriculum
- 5 Sections
- 26 Lessons
- 1 Day
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- The Strategic Role of Inventory Control5
- 1.1Concepts: Why control matters – availability vs cost, risk vs responsiveness
- 1.2Keywords: Inventory Turnover, Stock Accuracy, Obsolescence, Non-Moving Items
- 1.3Situational Focus: High inventory value with frequent material shortages
- 1.4Real-life Case: Engineering firm reduced working capital by 14% via classification-based stocking
- 1.5Exercise: Map inventory pain points across key functions (purchase, planning, finance)
- ABC Analysis – Value-Based Classification5
- 2.1Concepts: Pareto Principle (80/20), Value Consumption Segmentation
- 2.2Keywords: A-class controls, Safety stock logic, Review frequency
- 2.3Case Study: Auto component maker moved from blanket MRP to A-class tracking
- 2.4Toolkit: Excel-based ABC analysis simulator – import value data & auto-classify
- 2.5Discussion: How ABC drives procurement priority, stock checks, reorder planning
- FSN Analysis – Movement-Based Classification5
- 3.1Concepts: Fast, Slow, and Non-moving segmentation based on issue frequency
- 3.2Keywords: Zero-issue tracker, Inventory Aging, Dynamic Review
- 3.3Situational Focus: Cluttered store with unknown non-moving SKUs
- 3.4Real-life Case: Paint industry firm flagged redundant inventory via FSN cleanup
- 3.5Exercise: Run FSN classification on a given transaction log – decide action per class
- VED Analysis – Criticality-Based Classification5
- 4.1Concepts: Vital, Essential, Desirable classification – impact of stockout
- 4.2Keywords: Stockout Cost, Downtime Sensitivity, Priority Replenishment
- 4.3Case Study: Power plant spare part classification reduced unplanned outages
- 4.4Toolkit: Create a VED matrix for sample MRO items (engineering, chemicals, tools)
- 4.5Discussion: How to merge VED with FSN/ABC for multi-factor classification
- Combined Classification & Control Policy Design6
- 5.1ABC–VED matrix (Value vs Criticality)
- 5.2FSN–VED (Movement vs Risk)
- 5.3XYZ–HML/GMROII (optional advanced)
- 5.4Keywords: Multi-axis policy, Dual control zone, Cycle counting focus
- 5.5Real-life Insight: Aerospace stores used triple classification to plan inspections & reviews
- 5.6Exercise: Design stock review policy using a combined classification matrix
Instructor
