ILMA Compoundings October 2017 - 37

Y

ou are probably thinking "Not
another article about inventory;
I'm sick of them." The reason
there are so many articles about inventory is because it is the most dynamic and
costly asset to manage. It's also the asset
that, when managed properly, provides
the largest return on investment. It's the
only asset that we focus on every day.
Lubricant manufacturers are constantly
evaluating what to buy; what to make;
how old it is; and whether it can be sold.
I wish I could say that I have a revolutionary way of managing inventory - I
don't. What I do have are tools and
procedures that you can use to improve
your return on your inventory asset.

Inventory Management
Before you can plan what inventory
you need to make or buy, you need
to know what you currently have on
hand. This requires accurately catalog-

ing transactions in a timely manner.
Accurate inventory quantities are a
critical component in meeting the
needs of your customers. If you don't
know what you have, then there isn't
any way to determine what to make.
Most computer systems do a really
good job of adding and subtracting
numbers. The difficulty for lubricant
manufacturers is that transactions are
done in varying units of measure. A
good software system must be able
to display inventory in packages and
units. It must also be able to adjust
inventory balances by converting the
transaction unit of measure to the
inventoried unit of measure. Lubricant manufacturers also use partially
full packages in the manufacturing
process. Therefore, accurate inventory
depends on the system to account
for 30 pounds being taken out of a
50-pound bag, for instance.

Another important aspect of a good
inventory system is properly timing
the recording of data. Ultimately,
the data should be updated as the
inventory changes. When a purchase
order (PO) is received in the plant, the
on-hand inventory must be updated
immediately. Waiting a day to enter a
PO or a batch receipt will show an inaccurate view of the inventory. Proper
procedures can improve timeliness of
data entry, resulting in accurate and
truly actionable information.
However, there is always going to
be a lag when entering data manually.
Utilizing bar coding devices or tablets
in the warehouse can greatly reduce
the lag between changes in the plant
and warehouse and changes in your
software systems. These devices also
reduce errors associated with manual
entry. Proper usage of bar coding
devices can all but eliminate incorrect

Turning Your Ideas
Into Reality
With a prowess for processing feedstocks
into high-quality specialty hydrocarbon
products, Calumet is your partner
for customized base stocks,
process oils, specialty oils,
solvents and waxes.
www.clmt.com
© 2017 Calumet Specialty Products Partners, L.P.

37


http://www.clmt.com

ILMA Compoundings October 2017

Table of Contents for the Digital Edition of ILMA Compoundings October 2017

LETTER FROM THE CEO
LETTER FROM THE PRESIDENT
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
In the Know
International Insight
Market Report
BUYING OR SELLING
INCREASED LITHIUM DEMAND, SHORTAGES LEAD TO PRICE SPIKES FOR GREASE MANUFACTURERS…
MANAGING INVENTORY: WHAT’S IN YOUR TOOL CHEST?
BUSINESS HUB
COUNSEL COMPOUND
WASHINGTON LANDSCAPE
IN NETWORK
Company Callout
Member Connections
Cross Connections
PORTRAIT
ILMA Compoundings October 2017 - Cover1
ILMA Compoundings October 2017 - Cover2
ILMA Compoundings October 2017 - 1
ILMA Compoundings October 2017 - 2
ILMA Compoundings October 2017 - LETTER FROM THE CEO
ILMA Compoundings October 2017 - 4
ILMA Compoundings October 2017 - LETTER FROM THE PRESIDENT
ILMA Compoundings October 2017 - INSIDE ILMA
ILMA Compoundings October 2017 - 7
ILMA Compoundings October 2017 - 8
ILMA Compoundings October 2017 - 9
ILMA Compoundings October 2017 - WHAT’S COMING UP
ILMA Compoundings October 2017 - 11
ILMA Compoundings October 2017 - INDUSTRY RUNDOWN
ILMA Compoundings October 2017 - 13
ILMA Compoundings October 2017 - 14
ILMA Compoundings October 2017 - In the Know
ILMA Compoundings October 2017 - International Insight
ILMA Compoundings October 2017 - 17
ILMA Compoundings October 2017 - 18
ILMA Compoundings October 2017 - 19
ILMA Compoundings October 2017 - Market Report
ILMA Compoundings October 2017 - 21
ILMA Compoundings October 2017 - 22
ILMA Compoundings October 2017 - 23
ILMA Compoundings October 2017 - BUYING OR SELLING
ILMA Compoundings October 2017 - 25
ILMA Compoundings October 2017 - 26
ILMA Compoundings October 2017 - 27
ILMA Compoundings October 2017 - 28
ILMA Compoundings October 2017 - 29
ILMA Compoundings October 2017 - INCREASED LITHIUM DEMAND, SHORTAGES LEAD TO PRICE SPIKES FOR GREASE MANUFACTURERS…
ILMA Compoundings October 2017 - 31
ILMA Compoundings October 2017 - 32
ILMA Compoundings October 2017 - 33
ILMA Compoundings October 2017 - 34
ILMA Compoundings October 2017 - 35
ILMA Compoundings October 2017 - MANAGING INVENTORY: WHAT’S IN YOUR TOOL CHEST?
ILMA Compoundings October 2017 - 37
ILMA Compoundings October 2017 - 38
ILMA Compoundings October 2017 - 39
ILMA Compoundings October 2017 - 40
ILMA Compoundings October 2017 - 41
ILMA Compoundings October 2017 - BUSINESS HUB
ILMA Compoundings October 2017 - 43
ILMA Compoundings October 2017 - 44
ILMA Compoundings October 2017 - 45
ILMA Compoundings October 2017 - COUNSEL COMPOUND
ILMA Compoundings October 2017 - 47
ILMA Compoundings October 2017 - WASHINGTON LANDSCAPE
ILMA Compoundings October 2017 - 49
ILMA Compoundings October 2017 - Company Callout
ILMA Compoundings October 2017 - 51
ILMA Compoundings October 2017 - Member Connections
ILMA Compoundings October 2017 - 53
ILMA Compoundings October 2017 - Cross Connections
ILMA Compoundings October 2017 - 55
ILMA Compoundings October 2017 - 56
ILMA Compoundings October 2017 - 57
ILMA Compoundings October 2017 - 58
ILMA Compoundings October 2017 - 59
ILMA Compoundings October 2017 - PORTRAIT
ILMA Compoundings October 2017 - Cover3
ILMA Compoundings October 2017 - Cover4
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