Global Standard for Procurement and Supply

Current segment

Level: Tactical

Theme: Spend Management

Segment 4.2 Effective Inventory Control

Segment 4.2 Effective Inventory Control

Knowledge: Will know and understand Capabilities: Will be able to

The classifications of different types of inventory such as:

  • Opening stock, work in progress and finished goods
  • Safety stocks
  • ABC classifications of stock that may apply
  • Dependent demand and independent demand items of stock

Explain to colleagues and other internal stakeholders the classifications of inventories that are supplied

The direct and indirect costs of holding inventories

Explain the direct costs and the indirect costs that are associated with holding inventories and take actions to reduce costs whilst mitigating any negative impact on service levels

The main techniques associated with managing inventories including:

  • Re-order quantities
  • Re-order levels
  • MRP and MRPII
  • Just in Time

Make comparisons between and use techniques for managing inventories

The use of bar coding in inventory operations

Use bar coding to select and control the range of stock items held by the organisation

The use of forecasting for inventories to identify and resolve any problems that can affect the scheduling of supplies

Explain the use of subjective and objective methods that can be applied to forecast inventories and identify and resolve any problems that can affect the scheduling of supplies

Knowledge: Will know and understand

The classifications of different types of inventory such as:

  • Opening stock, work in progress and finished goods
  • Safety stocks
  • ABC classifications of stock that may apply
  • Dependent demand and independent demand items of stock
Capabilities: Will be able to

Explain to colleagues and other internal stakeholders the classifications of inventories that are supplied

Knowledge: Will know and understand

The direct and indirect costs of holding inventories

Capabilities: Will be able to

Explain the direct costs and the indirect costs that are associated with holding inventories and take actions to reduce costs whilst mitigating any negative impact on service levels

Knowledge: Will know and understand

The main techniques associated with managing inventories including:

  • Re-order quantities
  • Re-order levels
  • MRP and MRPII
  • Just in Time
Capabilities: Will be able to

Make comparisons between and use techniques for managing inventories

Knowledge: Will know and understand

The use of bar coding in inventory operations

Capabilities: Will be able to

Use bar coding to select and control the range of stock items held by the organisation

Knowledge: Will know and understand

The use of forecasting for inventories to identify and resolve any problems that can affect the scheduling of supplies

Capabilities: Will be able to

Explain the use of subjective and objective methods that can be applied to forecast inventories and identify and resolve any problems that can affect the scheduling of supplies

This segment was last updated on: 13th October 2014

The Global Standard for Procurement and Supply structure

Released in 2014 the Standard is a competency framework of procurement and supply skills, knowledge and capabilities that can be used by individuals and organisations to identity training and professional development needs at varying levels of competency.

The Global Standard for Procurement and Supply structure
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