Webinar Teach-In Summary: Mastering Inventory Management with Genie
During this insightful webinar, Sebastiaan Debrouwere, founder of Genie, introduced the platform and shared his extensive expertise in inventory management. Joined by David Lindahl and Yvonne Breeuwer, participants explored the challenges and best practices of managing inventory effectively while gaining a comprehensive understanding of Genie’s capabilities.
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Key Topics Covered:
Introduction and Brand Overviews
Sebastiaan Debrouwere initiated the session by encouraging participants to share their brand experiences.
David Lindahl discussed his apparel brand’s struggles with inventory management, particularly reordering and managing seasonal SKUs.
Yvonne Breeuwer highlighted her online door hardware business, operating in the DACH and Benelux regions, and her interest in improving inventory processes with Genie.
Inventory Management Challenges
Reordering Difficulties: David Lindahl highlighted challenges like managing numerous SKUs and reordering seasonal products efficiently.
Best Practices for Reordering: Sebastiaan emphasized the importance of sales data and inventory level analysis, introducing ‘days to order’ as a critical metric.
Overview of Genie and Its Features
Sebastiaan provided a walkthrough of Genie’s functionalities:
Purpose and Functionality: Simplifies inventory analysis, supports order planning, and enhances supplier management.
Supply Chain Experience: Sebastiaan shared his background in building scalable supply chains, highlighting common challenges.
Reordering Strategies
When to Reorder: He explained the importance of calculating lead times and safety stock to prevent stockouts.
Calculating Reorder Points: Detailed the formula using inventory data and sales metrics, with a practical example.
Prioritizing Reorders: Introduced ABC analysis to rank products based on revenue contribution.
Managing Seasonal Products: Suggested time-frame-specific comparisons to evaluate performance effectively.
Reordering Methodologies
Sebastiaan outlined three approaches:
Covered Until Method: Projects inventory duration but risks stockouts if demand spikes.
Fixed Reorder Point Method: Orders a fixed amount regularly but may result in excess inventory.
Economic Order Quantity Method: Balances holding and ordering costs but requires advanced analysis.
Forecasting and Demand Planning
Importance of Forecasting: Anticipating demand is vital to align supply and avoid stockouts.
Challenges in Forecasting: Adjustments are necessary during rapid growth or new product launches.
Tracking and Adjusting Plans: Regular performance reviews ensure forecasts reflect actual demand.
Inventory and Order Tracking
Tracking Shipments: Sebastiaan stressed the importance of shipment monitoring to maintain inventory levels.
Two-Dimensional Order Thinking: Balancing order management with delivery timelines ensures operational efficiency.
Payment Tracking: Monitoring costs, including customs and additional fees, aids cash flow management.
Supplier Relationships and Negotiation
Building Relationships: Collaborating with suppliers helps negotiate better terms.
Negotiating Payment Terms: Strategies include reducing upfront payments and adjusting order quantities.
Sharing Market Insights: Transparent communication fosters trust and enhances product offerings.
AI and Forecasting Capabilities
AI in Demand Forecasting: Genie’s algorithm incorporates seasonality trends across SKUs and categories.
Limitations of AI Forecasting: Human oversight remains crucial to refine forecasts.
Collaborative Forecasting Process: AI-generated numbers are reviewed and adjusted with user input.
Key Takeaways
Genie simplifies inventory management, offering actionable insights and automating complex processes.
The platform emphasizes flexibility, adapting to diverse business needs.
Strong supplier relationships and effective negotiation are critical for operational success.
Forecasting and reordering strategies, supported by data, are essential for maintaining optimal inventory levels.