Inventory ageing

Days since a SKU's last issue at a site, banded, with value per band per site. Days since last issue, not since receipt, because a slow line that issues weekly is not aged. The same SKU aged at one site and issuing at another is a transfer; the bands above the policy's age are the write-down exposure.

DefinitionDays since a SKU's last issue at a site, banded, with value per band per site. Days since last issue, not since receipt, because a slow line that issues weekly is not aged. The same SKU aged at one site and issuing at another is a transfer; the bands above the policy's age are the write-down exposure.

Transfer with the usage check

Moving a year of stock to a site that uses a month's worth is the same problem elsewhere.

The identity

Value in every band per site sums to the inventory ledger. The ageing table is the balance sheet cut by time.

How it is computed

Days since the last issue of each item at each site, banded, with stock value per band.

Example

A site holds $1.1 million with no issue in over 180 days, 22 percent of its stock. Thirty items forecast high every month account for $640,000 of it.

Where it goes wrong

Aged by receipt date. An item received last month and not issued for two years before that looks fresh.

Articles that use this term

Board and management reporting · Supply chain

Inventory ageing by site: the stock with no movement in 180 days, and the sites that hold it

How a supply chain team reads inventory ageing per SKU per site from the stock and movement files: days since last issue, value in each ageing band, the sites where aged stock concentrates, the SKUs aged at one site and moving at another, the transfer that releases the cash, the write-down exposure at stated bands, and the identity that aged plus moving stock equals the inventory ledger.

16 Sept 20263 min read Board and management reporting · Supply chain

Ten questions a chief operating officer asks about supply and service, and the table that answers each

The ten questions a COO puts to the supply chain and service functions, which suppliers are deteriorating, where is single-source risk, what is the lead time really, where is inventory ageing, which sites are short and which are long, is the demand plan biased, what are we paying early for nothing, which accounts consume the most service, are we meeting the SLAs we signed, and what changed, each with the computed table, the identity behind it, and the answer a COO should send back.

16 Sept 20263 min read Alternatives and comparisons · Supply chain

How to choose analytics software for supply chain: questions, data and traps

How supply chain teams should choose analytics software: start from the questions, check the data you hold, ask vendors ten questions, avoid the traps.

24 Sept 20264 min read Board and management reporting · Supply chain

KPIs for supply chain teams: ten measures that matter, each with its formula and the export it comes from

The ten KPIs a supply chain function should run on, each with its formula, the export it comes from and what it tells you: supplier OTIF against each supplier's own baseline, lead time variability, customer OTIF under each customer's rule, forecast bias by SKU and site, inventory ageing, single-source exposure, days of cover against target, expedite cost, supplier deterioration watch, and cause of service misses. Also the three measures most teams miss, the figures to drop, the identities, and who owns what.

17 Sept 20264 min read Coverage and territory · Industrial distributors

Lost lines on ten order lines: the whole arithmetic on one page

The complete lost-line calculation on ten order lines from three accounts at one branch, small enough to check by hand: the order and fulfilment exports joined on order and line, each line's state, shipped in full, short, cancelled for stock, or substituted, lost value at the line's price, lost rate per account, the item that recurs, the account whose order frequency fell after the run, and the assertion that every line is in exactly one state, so a reader can reproduce every figure and then run it on their own exports.

17 Sept 20263 min read