As an inventory analyst, you will make sure that your organization distribution centers and warehouses maintain inventory levels necessary to meet projected sales demands, you should allow your accountant to reconcile physical stock to the inventory records, highlight variances, and identify issues with stock management and control, similarly, a classic inventory system where the inventory level is reviewed at a regular time intervals (e.g, once a week), whereupon the decision is made as to how much to order to bring the inventory level up to a given amount.
—allocations in inventory management refer to actual demand created by sales orders or work orders against a specific item, inventory management software gives you control over all aspects of stock and supplies, integrating related processes into a centrally accessible software package. And also, the returns process involves issuing the customer an authorization to returns the goods, inspection of the goods, and either removing the goods from further inventory (if damaged) or returning the inventory back into the warehouse if the inventory is still in good condition.
Cutting-edge inventory management techniques deliver results that go far beyond initial expectations, having a list and record of your inventory is vital in order to keep tab of your goods and to know which products need to be replenished. Above all, an alternative to a full physical inventory when all inventory is counted at a point in time is inventory cycle counts when you count inventory in portions throughout a year.
These include deployment strategies (push versus pull), control policies — the determination of the optimal levels of order quantities and reorder points, and setting safety stock levels, at each stocking location, otherwise known as a classical economic order quantity formula, conversely, one of the most common issues supply chain management professionals struggle with is accurately identifying the causes of inventory discrepancies.
In a continuous review inventory policy, you continually monitor your inventory and order a fixed quantity every time your inventory level reaches a preset quantity. And also, most researchers have approached the management of inventory from an operational perspective. Furthermore, although one person may be assigned to ordering and maintaining supplies, the actual inventory control is the responsibility of the entire staff.
With an effective inventory management system in place, the business can significantly reduce its various costs like warehousing cost, inventory carrying cost, ordering cost, cost of obsolescence, etc, you should have a written policy regarding the inventory count process (inventory plan, inventory instructions). For the most part, proper inventory management depends on the ability of the warehouse system and employees to process and handle products and packages.
Covering all aspects of inventory management in a policy emphasizes the new best practices approach you are taking and reflects your overall culture that is focused on continual improvement, excess inventory in a channel can also damage future sales as partners stop ordering, singularly, usually, employees in a work environment that is loose tend to steal inventory items.
Effective inventory management and control protects from incorrect or damaged goods being shipped to customers, successful inventory management helps you improve customer relationships and avoid tons of leftover goods. As a matter of fact, make sure your warehouse is organized in a systematic and orderly manner at all times.
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