Poor inventory accuracy prompts planning problems

25 June 2013

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25 June 2013 | Andrew Allen

A white paper advising companies how to avoid typical mistakes in distribution requirements planning (DRP) and material requirements planning (MRP) has been published.

Supply chain management software company e2b teknologies published 23 Common (and Critical) DRP & MRP Mistakes and How to Avoid Them.

Author James Mallory said: “Distributors and manufacturers have a very hard job balancing supply and demand. There are so many inputs into the logic that companies frequently make mistakes when determining what they need to buy (or make), when, and how much.

“Some mistakes can’t be avoided, but some can be. This white paper was written to help supply chain management professionals make decisions to minimise cost while meeting or exceeding customer expectations.”

For example, the report cites poor inventory accuracy as one of the most frequent problems in MRP and DRP systems.“Make sure you conduct physical inventory counts frequently to ensure that your inventory stocking information is accurate,” it advises.As a best practice, many distributors and manufacturers conduct physical inventories more frequently on high volume or high ‘hit’ items that are frequently ordered.”

A full copy of the white paper is available here

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