Key Responsibilities and Required Skills for Inventory Planner

🎯 Role Definition

The Inventory Planner is responsible for maintaining optimal inventory levels across assigned product portfolios to balance service levels, working capital, and operational constraints. This role combines demand forecasting, replenishment execution, SKU rationalization, and close collaboration with procurement, operations, sales and finance to deliver on customer service and financial targets. The Inventory Planner uses ERP/MRP systems, advanced Excel, and BI tools to analyze trends, make replenishment decisions, and drive continuous improvement in inventory processes.

📈 Career Progression

Typical Career Path

Entry Point From:

Inventory Analyst / Inventory Control Specialist
Supply Chain Analyst / Demand Analyst
Procurement Coordinator / Planner Assistant

Advancement To:

Senior Inventory Planner
Demand Planning Manager / S&OP Manager
Supply Chain Manager / Head of Planning

Lateral Moves:

Procurement / Category Buyer
Logistics / Distribution Planner
Operations Planning or Production Scheduling

Core Responsibilities

Primary Functions

Develop and maintain accurate short-, medium- and long-term demand forecasts using historical sales, seasonality, promotions, new product introductions, and market intelligence to drive replenishment decisions and minimize stockouts.
Create, review and execute replenishment plans (PO creation, reorder point review, min/max levels) to ensure on-time product availability while minimizing excess inventory and obsolescence across warehouses and retail locations.
Set and manage safety stock, reorder points and service-level targets per SKU/category based on service objectives, supplier lead times, forecast error and business priorities.
Run and validate MRP/DRP planning cycles in SAP, Oracle, NetSuite or equivalent ERP systems; resolve exceptions and drive timely action to close gaps between planned and actual demand/supply.
Conduct SKU segmentation (ABC/XYZ) and lifecycle management to prioritize planning effort, identify candidates for SKU rationalization, and optimize inventory investment.
Monitor and report inventory KPIs including days of inventory, inventory turnover, on-time fill rate, stockouts, backorder levels, and excess & obsolete inventory; provide weekly/monthly business reviews and recommendations.
Coordinate with procurement and suppliers to secure capacity, reduce lead times, negotiate order quantities and implement vendor-managed inventory (VMI) or consignment where appropriate.
Manage promotions, new product introductions (NPI) and end-of-life (EOL) transitions with cross-functional teams to ensure appropriate safety stock, staging plans and markdown strategies.
Analyze root causes of stockouts, overstocks, and variances; lead corrective actions, process changes, and supplier performance improvements to prevent recurrence.
Maintain and audit master data accuracy (lead times, lot sizes, pack quantities, lead time variability) and collaborate with master data teams to ensure planning inputs are current and reliable.
Collaborate closely with Sales and Customer Service to balance customer commitments and inventory realities; participate in S&OP processes to align demand plans with supply and financial targets.
Lead cycle count programs and physical inventory reconciliation support; investigate discrepancies and recommend inventory controls or process changes.
Prepare purchase order recommendations, expedite critical orders, and manage order release cadence to align procurement actions with warehouse capacity and transportation constraints.
Implement inventory optimization techniques (min/max modeling, multi-echelon inventory optimization, safety stock algorithms) to reduce working capital and improve fill rates.
Use advanced Excel, SQL and BI tools (Tableau, Power BI) to create dashboards, perform ad-hoc analysis, and present actionable insights to stakeholders and senior management.
Partner with manufacturing/production planning to synchronize finished goods inventory with production schedules and raw material constraints.
Monitor supplier on-time performance and lead time variability; work with suppliers to implement corrective actions, buffer strategies, or alternative sourcing to improve reliability.
Develop and execute inventory reduction or buy-down plans for excess and obsolete stock including promotions, liquidation, and return-to-vendor options in alignment with commercial and finance teams.
Drive continuous improvement projects (Lean, Six Sigma tools) to optimize inventory flow, reduce cycle times, and simplify replenishment processes.
Ensure compliance with internal controls and audit requirements related to inventory transactions, receiving, and shipping processes; support external audits and month-end inventory close.
Communicate inventory risks and opportunities proactively to leadership, recommending re-prioritization of capital, freight spend or production to mitigate supply disruptions.
Train and mentor junior planners or cross-functional colleagues on inventory best practices, ERP/MRP basics, and forecasting methodology to build team capability.

Secondary Functions

Support ad-hoc inventory data requests and exploratory analyses to answer stakeholder questions and support strategic initiatives.
Contribute to the organization's inventory strategy and roadmap including automation, multi-echelon optimization, and digital planning tools adoption.
Collaborate with IT and data teams to translate planning needs into system requirements, reporting enhancements and MRP parameter changes.
Participate actively in S&OP, monthly business reviews and cross-functional working groups to align inventory decisions with demand, supply and financial plans.
Assist in vendor relationship management by participating in supplier business reviews focused on inventory performance and replenishment reliability.
Help define and document standard operating procedures for replenishment, cycle counting and inventory reconciliation to strengthen governance and repeatability.
Support pilot implementations of new planning tools or processes, providing subject matter expertise and validating business rules.
Provide input and analysis for capital and budgeting cycles as they relate to inventory investment, warehousing needs, and logistics costs.
Engage in continuous professional development related to forecasting, inventory optimization and supply chain analytics to bring best practices to the organization.

Required Skills & Competencies

Hard Skills (Technical)

Demand forecasting methods (time-series, causal, promotional uplift) and practical experience applying them to SKU-level forecasts.
Advanced Excel (pivot tables, INDEX/MATCH, array formulas, Power Query) for modeling and scenario analysis.
ERP/MRP system expertise (SAP APO/IBP, Oracle, NetSuite, Microsoft Dynamics) including MRP runs, exception handling and parameter tuning.
Inventory optimization techniques (safety stock calculation, min/max policies, multi-echelon inventory concepts).
Experience with planning and supply chain applications such as Kinaxis, Blue Yonder (JDA), Manhattan, or Logility.
SQL for data extraction, cleansing and joining large datasets to support planning analyses.
Business Intelligence tools (Power BI, Tableau, Looker) for KPI dashboards and presentations.
Statistical tools and programming basics (Python, R, or forecasting libraries) for advanced forecasting and anomaly detection.
Familiarity with procurement and PO lifecycle management, vendor-managed inventory (VMI) and consignment models.
Knowledge of SKU rationalization, lifecycle management, and excess/obsolescence mitigation strategies.
Understanding of logistics and lead time management including inbound transportation, cross-dock, and warehouse receiving flows.
Basic accounting/finance acumen as it relates to inventory valuation, working capital, and P&L impacts.

Soft Skills

Strong analytical and problem-solving ability with an aptitude for turning data into actionable decisions.
Excellent written and verbal communication skills; able to explain complex inventory concepts to non-technical stakeholders.
Collaborative team player who can influence cross-functional partners (procurement, sales, operations, finance).
Attention to detail and process orientation to maintain data integrity and reliable replenishment decisions.
Time management and prioritization skills in a fast-paced environment with multiple competing demands.
Adaptability and resilience when managing supply disruptions, promotions, or rapid demand shifts.
Customer-service mindset focused on balancing service levels with cost efficiency.
Strong organizational skills for managing multiple SKUs, product families and replenishment calendars.
Critical thinking and decision-making under uncertainty, including trade-off analysis and risk assessment.
Continuous improvement mindset with experience driving process change, automation or root-cause corrective actions.

Education & Experience

Educational Background

Minimum Education:

Bachelor's degree in Supply Chain Management, Business, Operations Management, Industrial Engineering, Finance or related field.

Preferred Education:

Bachelor's degree plus professional certification (APICS CPIM/CSCP, ISM CPSM) or Master's degree in Supply Chain/Operations.
Coursework or certificate in data analytics, statistics, or business intelligence tools.

Relevant Fields of Study:

Supply Chain Management
Operations Management
Industrial Engineering
Business Administration
Finance / Economics

Experience Requirements

Typical Experience Range: 2 - 5 years in inventory planning, demand planning, supply chain or related roles.

Preferred: 3 - 7 years of hands-on experience in inventory management or planning within retail, distribution, manufacturing or consumer goods; proven experience with ERP/MRP systems, forecasting, and inventory optimization projects.