Best Practice (Good)
Prepare a weekly inventory “hot list” for the Purchasing Group that lists which items currently are over- OR under-stocked. Include all relevant data about these items, such as retail price, cost, lead times, demand forecasts, etc.
Typical Practice (Bad)
Determine items that are over-/under-stocked by comparing data from weekly or monthly inventory reports and demand forecasts.
Benefits: Improves storage efficiency by opening warehouse capacity for more high-value, demand-heavy materials, and greatly improves materials availability by ensuring that high-demand items are appropriately stocked.