Redundant Stock

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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Certified Inventory Optimization Professional (CIOP) is an end-to-end supply chain certification program. The certification consists of 30 modules focusing both on traditional and futuristic topics. The traditional topics are introduction to supply chain management, all about inventory, strategic business planning, forecasting, demand management, capacity management, sales and operations planning (S&OP), master scheduling (MPS), materials requirements planning (MRP) and production activity control (PAC). It also includes topics on procurement, warehousing, transportation, distribution, and packaging. The topic on the future trends such as Blockchain, Internet of Things (IoT), Robotic Process Automation (RPA), Machine Learning (M/L) and Artificial Intelligence (AI). There is a significant focus on supporting technologies such as forecasting and process mapping tools such as Microsoft Visio. In addition to the above indicated topics the participants need to master over 3000 terminologies in supply chain management.

 

In view of the growing importance of the destruction of redundant and excess inventory as a key preventative measure to prevent the proliferation of illicit light weapons, particularly in war zones, the South African Governments took another important step to counter this illicit trade by further implementing the Control and Regulation of Work in Heavy Manufacturing Sectors (CMWS). This Task Force is focused on improving the productivity of businesses that manufacture heavy material goods in the manufacturing sectors and to reduce the risks associated with acquisitions of redundant stock and excess inventory. Efforts are underway to standardise warehousing procedures across all manufacturing sectors to enhance productivity, while efforts to standardise warehousing practices across all South African industries will also contribute to reducing the risks associated with acquisitions of redundant stock and excess inventory. This initiative has been applauded by all stakeholders as an important element in the overall efforts to strengthen the Manufacturing and Process Industries in South Africa.

In line with these efforts CMWS has proposed a number of Working Party Surveys (WPS) to make use of an improved methodology to identify redundant stock as well as make use of a standardised inventory control and management system. The surveys are planned to be conducted in six phases to be concluded by the end of 2021. The initial phase of the project involves a structured surveyor visit to a warehouse of a cleared exporter for an overview of activity in terms of stocks held and cleared, inventories available and potential future demand. The second phase of the survey covers the production planning activities of exporters to identify the amount of inventory required to meet current and future requirements. During the third phase the surveyor visits a number of factories and workspaces to establish the nature of inventory workflow processes to identify which processes need improvements.

As part of the fourth phase of the project, the surveyor goes shopping around the home market to identify areas where surplus stocks are required and at what prices. A report on the findings of these visits is then compiled into a database that will be used to make informed decisions about purchasing and manufacturing capacity. These reports will also help in identifying areas of surplus stock that can be developed into new contracts by exporters.

 

The process of accounts payable collection begins with a notice of default by one or more suppliers to the enterprise. The enterprise must investigate the account before attempting to collect the outstanding balances from the vendors. The enterprise must establish both a practical and potential claim to the goods or services owed by the vendors and must be able to estimate a reasonable estimate of the loss, if any, to the enterprise due to the non-payment of accounts payable by the vendors. Once the claim has been made in good faith, the vendor will then be required to make payment in terms of cash, with funds being available for a recovery action to be filed by the supplier or manufacturers in the event of refusal to pay.

Accounts Payable collection can be used by manufacturers, suppliers, distributors, or retailers to meet their short-term debt requirements. Accounts payable collections are generally less costly to large businesses since it only involves a small amount of money to create the payment process between the supplier and the receiver of the goods, with a lesser amount of money to pay the suppliers as well. This process can be established for short-term periods, such as one month to four months, or can be extended indefinitely with a contract that allows the company to set up a revolving account that collects amounts from suppliers over time. This provides an opportunity for the business to establish a sound supply chain with its suppliers and to gain a solid credit history with its suppliers and creditors. As more companies take advantage of Accounts Payable to satisfy their supplier needs and avoid additional expense to themselves, this method of collecting overdue invoices will become increasingly popular and beneficial to all parties involved.

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Certified Inventory Optimization Professional 

CIOP is an end-to-end supply chain certification that contains 30 modules such as Introduction to Supply Chain Management, All About Inventory, Production Planning System, Strategic Business Planning, Sales & Operations Planning, Master Scheduling, Material Requirements Planning, Demand Management, Capacity Management, Forecasting, Production Activity Control, Procurement, Order Quantities, Independent Demand Ordering Systems, Warehouse Management, Transportation Management, Supplier Relationship Management (SRM), Customer Relationship Management (CRM), Introduction to Quality, Introduction to Packaging, Introduction to Process, Lean, Six Sigma, Total Quality Management, Theory of Constraints, Supply Chain Technologies, Supply Chain Techniques, Industry 4.0, International Standards and Supply Chain Risk, Safety and Security. 

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CIOP Knowledge Series

One-Minute Supply Chain Facts

The most recent video is available here. To access the past videos in the One-Minute Supply Chain Facts Series, please click the playlist icon located on the Top-Right of the video.

 

 

 

 

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