Key Metrics to Measure Inventory Management Success
In a two part series, our guest post from Jon Schreibfeder, president of Effective Inventory Management, explores the key metrics used to measure inventory management success and why they are critical to your business. The main goal of any distribution business is to achieve excellent customer satisfaction by stocking the product your customers require while maintaining the proper level of inventory. This will help your industrial distribution business thrive and achieve a maximum net profit.
Jon has laid out a very clear picture of these key metrics that are most important for industrial distributors. In this series, he provides the necessary formulas to help you determine what your levels need to be and how to get there.
- In the first segment, Jon talks about the importance of measuring your customer service levels and knowing what items you've committed to stock when your customer needs them.
- What is the true value of inventory turnover? This second segment takes a good look at inventory turnover, how to calculate it, and a fresh way of looking at the process.
Jon Schreibfeder is president of Effective Inventory Management, Inc., a firm dedicated to helping manufacturers, distributors, and large retailers get the most out of their investment in stock inventory.
We are also excited to announce that he will be our keynote speaker at Tribute's Annual User Group Conference, TribNet, coming in June.
For over 20 years, Jon has served as an inventory management consultant to over two thousand firms to improve their productivity and profitability through better inventory management. Jon has designed several inventory management computer systems and has also served as a distribution industry “troubleshooter” for two major computer companies.
He is the author of numerous blog entries and a series of books on effective inventory management, including the recently published Achieving Effective Inventory Management (6th edition) and the National Association of Wholesale Distributors’ Guess Right – Best Practices in Demand Forecasting for Distributors.
