The inventory management determines the management of the strategies of a company, in the presentation of services and the production of goods. The activities corresponding to this type of administration are related to the determination of the methods of registration and rotation points, the classification type and the re-inventory model provided by the method of control.
The base of the commercial company is directly related to the purchase and sale of goods and services, it is from there that the importance of the organization's inventory management arises. This management facilitates good physical and accounting management and thus the company can maintain a favorable management, as well as the knowledge of their activities and the state of their economic situation at the end of the period.
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In this article you will find:
Objective of inventory management
The main objectives of inventory management They are:
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- Continuously guarantee the supply of raw material, as it is a priority in the advancement of production processes.
- Ensure that the raw material has not exceeded the time of use. This could cause the loss of large amounts of resources that would allow irreparable damage.
- Provide auxiliary materials that facilitate the production of products in case of incidents.
- Reduce order and storage costs.
Inventory management benefits
A proper inventory management, offers greater profitability and benefits in the inventory management system as detailed below:
Improved cost management
Effective inventory management improves logistics related to replenishing existence by maintaining the corresponding levels of raw materials and products elaborated.
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The issuance of orders generates costs for paperwork, shipping, receipt of orders, telephone calls, payments, transfers and warehouse disposal. This system analyzes the replenishment rotation, allowing various proposals for the issuance of orders in large quantities that optimize the association of costs.
Appropriate levels and reorder points
Like logistics, maintenance and inventory shortages involve costs that generate opportunities and risks. This system calculates the precise moment that an order has to be placed to prevent the missing ones that are known as reorder points, as well as the size of the order to be perform.
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Control and monitoring of existence
An administrative system like this one focuses on tracking and recording. In addition, it allows the exploration of merchandise, which is very important for companies, especially for retail businesses. The merchandise scan system is used to monitor executed orders and delivery, as well as shipping schedules.
With this level, the company will always know where its inventory is and what it costs. With barcode scanners, products can be tracked and allows for highly efficient transportation and logistics in real time.
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Ease of access
In industrial production organizations, when your workers need various parts to carry out carry out your assembly and transformation activities, ease of access should be implemented righ now.
The standardized locations and the traceability record of an efficient management system, provides a good economy and gives workers to locate and distribute parts properly and with speed.
Standardization allows workers to spend more time on worthwhile activities, rather than wasting time trying to put parts in a messy place.
Integration
The integration makes it possible to synchronize the management system, to achieve integration with other software such as resource planning and accounting systems. In the same way, it allows to know the value of existence that is available at any time and thus facilitate the management of accounting and the administration of assets.
Tips for efficient inventory management
So that a inventory management be efficient, the following tips should be taken into account:
People
Appropriate people, collaborators with a spirit of leadership must be sought. There are many companies that strive to find a good work team that always stays motivated and knows how to handle the competition for the good management of the entire company.
Processes
It is necessary to take into account the main processes that determine the stocks and obtain an efficient execution. The results must be verified by means of performance indicators and the practice of improvement programs.
Correct execution of processes is very important, even when moments of difficulty arise, since that, if there is inattention in the processes, the efficiency of the management.
Procedures
Implement and monitor procedures, ensure that workers execute processes effectively. In this way, you can be sure that all physical and virtual movements are effectively carried out. Therefore, all system transactions must be recorded at the time they are executed.
Prosecutions
The processes of the transactions that are linked to the stock must be carried out immediately, taking into account all the inputs and outputs of the processing.
Shelving planning and control
It is important to supervise the shelves and the facilities in general in the stock areas, in this way you can have knowledge of their physical organization. Those companies that have difficulties with stocks, mostly present a great disorder in their organization.
Currently in the financial world, it is necessary to determine the appropriate amount to invest in an inventory, where the manager is It is interested in covering the raw material that is needed for production at the time it must be processed and so that the sales agents can know the number of units they have to cover the demand, in addition to the efficiency of the administration that helps the company.
