Procurement Career Paths

Job Title: Inventory Specialist

Location: [Insert location]

Reports to: [Insert name and title of supervisor]

An inventory specialist ensures the faultless condition of the product throughout the logistics process. They count products, screen them for defects, and make necessary repairs or take the product out according to the damage.

Key Responsibilities: 

• Assessing and overseeing stock rotation protocols.
• Managing warehouse space for inventory storage in the store.
• Educating store personnel on stocking techniques and product dating practices.
• Strategizing the utilization of store warehouse space.
• Initiating restock orders for inventory.
• Updating store management on inventory matters.
• Collaborating with management to address missing or damaged products in shipments.

KPIs for this role

• Inventory Turnover Rate: This is the number of times a company sells and replaces its stock in a period, usually one year.
• Days on Hand: Days on hand (DOH) represents the average number of days it takes for a company to sell its inventory. It is calculated by dividing the average inventory by the cost of goods sold per day.
• Stock-to-Sales Ratio: The stock-to-sales ratio measures the relationship between the amount of inventory a company has on hand and its sales volume. It is calculated by dividing the average inventory by the average sales for a specific period.
• Sell-through Rate: The sell-through rate is a metric used to evaluate how efficiently a company is selling its inventory. It is calculated by dividing the number of units sold by the beginning inventory, multiplied by 100 to get a percentage.
• Backorder Rate: The backorder rate measures the percentage of customer orders that cannot be fulfilled immediately due to insufficient inventory. It is calculated by dividing the number of backorders by the total number of orders.
• Accuracy of Forecasted Demand: The accuracy of forecasted demand measures how closely a company’s forecasted demand matches actual customer demand. It is calculated by dividing the absolute difference between forecasted and actual demand by the actual demand, multiplied by 100 to get a percentage.
• Rate of Return: The rate of return (ROR) is a measure of the profitability of an investment. It is calculated by dividing the net profit of the investment by the initial investment, multiplied by 100 to get a percentage.
• Product Sales: Product sales, also known as sales revenue, is the total amount of money generated from selling products during a specific period. It is calculated by multiplying the number of units sold by the selling price per unit.

Key Skills and Qualifications: 

• Demonstrates employment background as an Inventory Specialist or in a comparable position.
• At least 3 years of relevant experience.
• Strong organizational and time-management abilities.
• Proficiency in word processing, database, and spreadsheet software.
• Willingness to work occasional weekends.
• A high school diploma or equivalent is preferred.

• Assessing and overseeing stock rotation protocols.
• Managing warehouse space for inventory storage in the store.
• Educating store personnel on stocking techniques and product dating practices.
• Strategizing the utilization of store warehouse space.
• Initiating restock orders for inventory.
• Updating store management on inventory matters.
• Collaborating with management to address missing or damaged products in shipments.

• Customer Service: An inventory specialist needs to be approachable to suppliers, vendors, and customers and respond to their needs accordingly.
• Inventory Management: As an inventory specialist is in charge of inventory they have to evaluate resource needs, determine appropriate order quantities to prevent overstocking, decide on storage locations, and establish stocking methods based on the resource’s characteristics.
• Detail Oriented: An inventory specialist has to be meticulous about their inventory information to ensure accuracy in their decisions for inventory maintenance.
• Accuracy: An inventory specialist has to be aware of when inventory needs to be restocked, how much, what specifically needs restocking, etc., or else they risk being irresponsible for company funds and goods
• Communication Skills: Inventory specialists must communicate effectively with suppliers, vendors, and customers.
• Cycle Counting: Cycle counting ensures an inventory specialist’s information is always accurate.
• Vendor Management: Inventory specialists have to manage suppliers by choosing them wisely, negotiating contracts, controlling costs, reducing vendor-related risks, and ensuring service delivery.
• Supply Chain Experience: Inventory specialists need to be familiar with the supply chain and its processes to effectively take on the responsibilities of an inventory specialist.
• Compliance: An inventory specialist must ensure that all inventory management activities comply with relevant regulatory and safety requirements.

• Inventory Turnover Rate: This is the number of times a company sells and replaces its stock in a period, usually one year.
• Days on Hand: Days on hand (DOH) represents the average number of days it takes for a company to sell its inventory. It is calculated by dividing the average inventory by the cost of goods sold per day.
• Stock-to-Sales Ratio: The stock-to-sales ratio measures the relationship between the amount of inventory a company has on hand and its sales volume. It is calculated by dividing the average inventory by the average sales for a specific period.
• Sell-through Rate: The sell-through rate is a metric used to evaluate how efficiently a company is selling its inventory. It is calculated by dividing the number of units sold by the beginning inventory, multiplied by 100 to get a percentage.
• Backorder Rate: The backorder rate measures the percentage of customer orders that cannot be fulfilled immediately due to insufficient inventory. It is calculated by dividing the number of backorders by the total number of orders.
• Accuracy of Forecasted Demand: The accuracy of forecasted demand measures how closely a company’s forecasted demand matches actual customer demand. It is calculated by dividing the absolute difference between forecasted and actual demand by the actual demand, multiplied by 100 to get a percentage.
• Rate of Return: The rate of return (ROR) is a measure of the profitability of an investment. It is calculated by dividing the net profit of the investment by the initial investment, multiplied by 100 to get a percentage.
• Product Sales: Product sales, also known as sales revenue, is the total amount of money generated from selling products during a specific period. It is calculated by multiplying the number of units sold by the selling price per unit.