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