Inventory Management

Inventory Management Inventory Management A major task of logistics Dipl.-Kfm. Stefan Weid Dipl.-Kfm. Gregor Altenbernd Dortmund, August 2002 page Inventory Management Agenda: • Trends of logistics • Facts and figures about logistics and its market • Major task of logistics: Inventory Management • Procedure in Inventory Management • Importance of Inventory Management page Inventory Management European Market developed from push to pull market Starting position: Saturation of market Trends of logistic Facts and figures Inventory Management Procedure Consumer Conclusion demands Difficult to Change in consumer forecast behavior (Consumer Wider offer Pull) Inventories Shorter livecycle of Rationalisation products Product- Pressure of Differentiation innovation (Technology Push) competition page Inventory Management Logistic becomes more important Trends of logistic Functions of logistic today Facts and figures Inventory Management Core function of logistic orgininall Procedure Warehousing Conclusion Dispatch Handling Material management/stock management Since the 90´s External transport Since Distribution the 80´s Extended functions since Internal transport the 80‘ originally Intercompany transport Order processing Procurement Production planning Purchasing Modern developments since Production control the 90‘ Information and communication Quality control t source: BVL page Inventory Management The typical supply chain today Trends of logistic Facts and figures Supplier Procurement Material Program Sales Buyers Inventory Management market planning requirement planning planning market Procedure planning Conclusion Information flow (planning, offer, order) Information flow Material flow value added Procurement Production Production Distribution and stocking Planning of goods Industry and and control Customer Commerce page Inventory Management Economic frame data Germany: Share of sales of different industries in gross domestic product in Trends of logistic percent Facts and figures Inventory Management 8,8 vehicle construction Procedure Conclusion mechanical engineering 6,7 electrical engineering 6,6 information & 5,3 communication logistic 5,3 food industry 5,2 chemical industry 4,9 0 1 2 3 4 5 6 7 8 9 Within the economy in Germany the logistics sector gains in importance source: VDMA/BITKOM/Statistisches Bundesamt/Infratest Burke (own calculation) page Inventory Management Economic frame data Volume of sales of selected industries in western europe in billion € Trends of logistic Facts and figures Inventory * covers the external generated logistic services as well as the internal logistic services Management Procedure 487 500 Conclusion 435 450 400 377 350 300 229 212 212 250 200 150 100 50 0 total external vehicle chemical IT-industry telecommuni- logistic* logistic service construction industry cation industry provider Economically the logistic sector plays a leading role.