Supply chain management involves managing inventory. You generally need to have some inventory so that you move fast, either to build a product or to sell something to a customer. But inventory is expensive. It ties up your money and you have to pay people to move it and protect it. It tends to lose its value over time, many products even have expiration dates and it can be damaged or stolen. So while there are good reasons to have some inventory, there are lots of reasons to keep your inventory levels as low as possible. Deciding how much inventory to order and when to order it, involves a lot of math. In particular, it requires you to use probabilities and statistics to analyze historical data and make predictions about what is going to happen in the future.
- One of the toughest parts … of any supply chain is managing inventory. … Companies generally need to have some inventory … so that they can move fast, … either to build a product … or to sell something to a customer. … But inventory is expensive. … It ties up your money, it takes up space, … and it tends to lose its value over time. … So it's a balance. … And while there are some good reasons … to have some inventory, the goal is usually … to keep your inventory levels as low as possible. … Figuring out how much to order and when to order it … involves a lot of math. … In particular, it requires you to use probabilities … and statistics to analyze historical data … and make predictions … about what's going to happen in the future. … The folks who do this work generally have titles … like demand planner, inventory planner, … or materials manager. … They run analyses to figure out how much inventory they need … and when to order it. … And a lot of this work is done in spreadsheets like Excel. …
- Explain the best approach for transitioning into a supply chain position.
- Determine the types of supply chain jobs that are the best fit for a given set of skills.
- Interpret the knowledge and skills needed for a supply chain job.
- Describe how to use resources for building a career roadmap in supply chain management.
- Identify concepts in building a professional development dashboard.