What is Reorder Quantity Formula?
What is Reorder Quantity? Reorder Quantity (ROQ) is the inventory amount needed when stock reaches a certain threshold, balancing demand, average lead time, and safety stock. The Reorder Quantity Formula optimizes ordering frequency, using reorder points to maintain stock levels and reduce holding costs. What is the Reorder Quantity Formula? The Reorder Quantity Formula, or […]
What is Inventory Shrinkage?
What is Inventory Shrinkage? Inventory shrinkage occurs when the physical stock on hand is less than what’s recorded in the inventory system. This inventory shrinkage definition is a crucial concept in retail inventory management as it impacts businesses relying on accurate stock counts for efficient operations, customer satisfaction, and profitability. Why is Reducing Inventory Shrinkage […]
What is Logistics Management?
What is Logistics Management? Logistics Management is the strategic coordination of goods movement and storage, optimising resources across sourcing, planning, transportation, and inventory. The logistics management meaning highlights its role in maximising profits while meeting customer needs efficiently. To learn logistics management, understanding these components is essential for seamless shipping and logistics. Importance of Logistics […]
What is Economic Order Quantity?
What is Economic Order Quantity? Economic Order Quantity (EOQ) defines the ideal order quantity that minimises the costs associated with ordering, receiving, and holding inventory. It assumes constant demand and cost factors, making it less adaptable in dynamic inventory systems like vendor managed inventory and just in time inventory. When is Economic Order Quantity High […]
What is Dimensional Weight?
What is Dimensional Weight? The Dimensional Weight (DIM Weight) meaning describes calculating shipping and logistics costs using a package’s dimensions instead of its actual weight. This approach ensures fair pricing for large, lightweight packages. A dimensional weight calculator generates the result that simplifies this process, making it essential for packaging logistics, freight transportation, and the […]
What is Inventory Audit?
What is an Inventory Audit? An Inventory Audit is a vital inventory management process verifying physical stock against financial records through a physical count. This ensures data consistency and highlights discrepancies, promoting accuracy and integrity in inventory reporting. Inventory audit procedures use standardized methods to validate stock levels. Importance of Inventory Audit: Conducting inventory audits […]
What is Inventory Accounting?
What is Inventory Accounting? Inventory Accounting tracks and values a company’s inventory throughout the production process, impacting financial health. It defines inventory in accounting as assets recorded during production, ensuring accurate logistics and financial management for reporting and tax purposes. How does Inventory Accounting work? Inventory accounting works by categorising and valuing inventory, such as […]
Supply Chain Procurement Strategies
Introduction of Supply Chain Management: Supply Chain Management (SCM) thus refers to the management of tangible goods and services from the point of production, through distribution to the customer. Sourcing involves all the processes in sourcing raw materials until the final product is delivered to the customer at the lowest cost and time possible. SCM […]
What is Freight Forwarding?
Freight forwarding is the overall process that involves the systematic arrangement and shipment of goods from place to place on behalf of a customer/shipper. It manages the entire logistics process, including transportation, documentation, and customs clearance. Understanding the Role of Freight Forwarding: The core responsibility of freight forwarding is establishing an arrangement with companies, importers, […]
Global supply chain Management
What is Global Supply Chain Management: Global Supply Chain Management encompasses the operations involved from transferring products and services across international borders to perfecting last-mile delivery and achieving an optimal level of customer satisfaction. This means carefully coordinating the logistics of raw materials, production, and shipping, ensuring that all steps align to meet demands on […]
