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SKU Type Inventory Profile

This profile considers a variety of SKU types in one analysis – domestic vs. internationally source SKUs, warehouse-controlled vs. cross-docked SKUs, and fast vs medium vs. slow moving SKUs. The figure is an ABC Inventory Turns Profile which also categorizes items by domestic and international sourcing and cross-dock vs. traditional warehouse flow patterns.  This profile helped to identify the surprising result that domestically sourced merchandise and internationally sourced merchandise were turning at nearly the same rate, even though international vendors were located literally half-way around the world.  As our practice analysis revealed, the international vendors were consolidated into an EDI-based consolidation program managed by a large trading company.  Domestic vendors were managed with pencil and paper and with little to no automated purchase order  management.  A simple spreadsheet-based tool was developed to help double the turns of domestic A items and increase service levels.

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