| In business management inventory consists of | | | | device that can help them control and manage |
| a list of goods and materials held available | | | | their largest asset, inventory. As a result |
| in stock. Management of an inventory or | | | | several computer software companies have |
| Inventory management is all about handling | | | | developed comprehensive inventory management |
| functions related to the tracking and | | | | modules and systems. These fresh packages |
| management of material. This includes the | | | | enable the distributor to effectively manage |
| monitoring of material moved into and out of | | | | his warehouse stock.Tough the software |
| stockroom locations and reconciling the | | | | technique is a beneficial aid yet it cannot |
| inventory balances, setting targets, | | | | provide solutions to inventory management |
| providing replenishment techniques, reporting | | | | problems. In order for the inventory |
| actual and projected inventory status. The | | | | management system to live upto its potential |
| task of ABC analysis, lot tracking, cycle | | | | and perform its best, make sure that you |
| counting support etc. can even be a part of | | | | follow quite a few basic and extremely |
| inventory management.The primary and foremost | | | | significant ways of good inventory |
| step in inventory management is acquiring | | | | management.To begin with, ensure that your |
| accurate information for inbound operations. | | | | company is protected against theft. There |
| The information so gained in advance can be a | | | | should be no pilferage problem at your place. |
| crucial factor in improving the inbound | | | | While ordering, order only the amount of |
| productivity. Setting up of an advanced | | | | non-stock or special order items that your |
| inbound strategy and execution framework can | | | | customer has approved of. If you wish to add |
| be done without too much of re-engineering | | | | an inventory, you must get a purchase |
| effort for the supply chain. The perfect way | | | | commitment from your customer. Make sure that |
| to commence is to make the best use of | | | | you assign and use bin sites. Establishment |
| information available to you and establish a | | | | and usage of proper bin sites make order |
| set of rules and regulations to harness the | | | | picking a hassle free job in your warehouse. |
| information efficiently.In order to better | | | | Don't ever forget to make an entry of the |
| your work and progress further you can | | | | material leaving your warehouse. Try to get |
| conduct a survey by asking supply chain | | | | rid of the 'no charge/no paperwork' material |
| executives to name the five most important | | | | swaps. You should charge the product samples |
| area for improvement in operations support | | | | to a salesperson account until they are |
| systems. The outcome of your survey will | | | | either returned to stock or charged to the |
| reflect better inventory planning as one of | | | | customer.Effective inventory management also |
| the target areas. You must pay special heed | | | | requires paper work (picking documents to be |
| to establish an effective way to maintain | | | | filled by the end of the day, entry of every |
| inventory data integrity or setting up higher | | | | single stock receipt in computer etc.) that |
| productivity and capacity utilization. Lack | | | | is upto the mark, determination of the most |
| of efficient inventory data integrity can | | | | beneficial replenishment strategy for each |
| lead to large amount of non-productive labor, | | | | item in each warehouse, setting up some |
| underutilized distribution center capacity | | | | lucrative offers and awards for the buyers, |
| and diminished customer service levels due to | | | | specifying guidelines for setting the reorder |
| incomplete or late orders.From past few years | | | | method and setting up of an on-going dead |
| distributors were looking forward for a | | | | stock and excess inventory control program. |