Deciding how much of each item to stock in your inventory doesn’t have to be complicated—unless you make it that way!
The truth is, managing inventory can be simple with the right approach.
Unfortunately, many companies still rely on outdated inventory management methods designed for retail and wholesale businesses like Walmart and parts suppliers.
If you're using these traditional methods for spare parts inventory, you're making the process harder and less effective than it needs to be.
Classic inventory theory fails to provide realistic answers for setting Reorder Points (ROP) and Reorder Quantities (ROQ) for spare parts.
To manage spare parts inventory effectively, it's crucial to understand why these old methods don’t work—so you can avoid the trap of doing "what everyone else does."
This month, I’m sharing an article that explains a better approach and provides resources to help you take control of your spare parts inventory management.
I hope it helps those still stuck in the old way of doing things!
