Stock Inventory Management
Inventory is one of the most interesting, intriguing and misunderstood business phenomena. The root of the misunderstanding is the various perspectives on what inventory represents. Inventory is the current asset. In particular, inventory represents tangible personal property which is held for sale in the ordinary course of business; are in process of production for such sale; or are to be currently consumed in the production.
Inventory control has a body of techniques and knowledge that differentiates the professional from the DIY enthusiast. This expertise is the result of 100 years of development and refining. There are still colleagues who believe that inventory can be managed using a clear brain, good communication and common sense. It is unlikely that they would be happy with the same competency in their doctor or financial advisor. Many executives are unaware that inventory expertise even exists and so miss out on operating excellence.
The strategic view of inventory management is that it exists to cover up the mismatch between supply and demand processes, to minimise the risk of failure to supply and to minimise the overall costs in the supply chain. Inventory separates demand from the supply so that users are not affected by the limitations in the supply chain.
Inventory management must be designed to meet the dictates of market place and support the company’s strategic plan. The many changes in the market demand, new opportunities due to worldwide marketing, global sourcing of materials and new manufacturing technology means many companies need to change their inventory management approach and change the process for inventory control.
Inventory management system provides information to efficiently manage the flow of materials, effectively utilise people and equipment, coordinate internal activities and communicate with customers. Inventory management does not make decisions or manage operations; they provide the information to managers who make more accurate and timely decisions to manage their operations.
We at Fox Procurement will help you manage your inventory to ensure the optimal amount without sacrificing your bottom line.