Q: What is the difference between Order Fillrate (First Fillrate) and Service Fillrate? As an Inventory person which one should be important for me? A: In my experience the terms Order Fill rate, First Fill rate, and Service Fill rate are not universally defined. In many companies they can mean the
Will an inventory turnover >1 be practical?
Q: I would like to take your opinion on the target for inventory turn over particularly for the industrial warehouse like ours, where around 80 to 85% of the materials stocked with us are maintenance spares /materials and many out of them are recommended by the OEM’s as 3-5 years
How do we measure reduction in consumption of MRO?
Q: A question I have is how do we measure reduction in consumption of MRO? It seems a highly problematic area (to me at least!). We have a complete data set of usage and spend for the past 12 months and are seeking to measure the impact of control systems
Inventory Statistics Aren’t Analysis
Have you ever thought about the mind numbing array of statistics that sports commentators go through during just about any sports telecast? It seems that for every position or every action there is a raft of different stats that someone, somewhere seems to think matters. I guess that the commentators have
Stock Turn Measurement – Four Common Problems
This 2-Minute Tutorial explains the calculation of stock turns and presents 4 common problems with both calculation and interpreting the stock turn ratio. Click here for information on our Practitioner Playbook. Posted by: Phillip Slater
The Stock Out Metric
The stock out metric is one of the most popular ways to monitor spare parts inventory. A ‘stock out’ occurs when there is demand for an inventory item but there is no stock available. The Stock Out metric is a curious measure and as with all metrics one needs to
The Right Spare Parts Metric – Accuracy Vs Precision
Performance measurement with the right metric is the cornerstone of all improvements efforts. If you don’t or can’t measure where you are now versus where you were before, then how do you know if you have improved? Just as importantly, however, is knowing if your measure actually reflects your current