Inventory Management

Inventory management is the active control program, which allows the management of sales, purchases and payments.

Inventory management also refers to the process of managing the stocks of finished products, semi-finished products and raw materials by a firm. Inventory management, if done properly, can bring down costs and increase the revenue of a firm.

How much one should invest in inventory management? The answer to this question depends on the volume and value of inventory as a percentage of the total assets of a firm. The importance of inventory management varies according to industries. For example, an automobile dealer has very high inventories, sometimes as high as 50 per cent of the total assets, whereas in the hotel industry it may be as low as 2 to 5 per cent.

The process of inventory management is a continuous one and here are various kinds of solutions available. It is advisable to employ specialized staff-for-inventory-management.
The inventory management process begins as soon as one has started production and ordered raw materials, semi-finished products or any other thing from a supplier. If you are a retailer, then this process begins as soon you have placed your first order with the wholesaler.

Once orders have been placed, there is generally a short period of time available to a firm to put an inventory management plan in place before the supplies are delivered. Inventory management helps a firm to decide in advance where these supplies should be stored. If a firm is getting supplies of small-sized goods, it may not be much of a problem to store them, but in the case of large goods, one has to be careful so that the warehousing space is-optimally-utilized.

From invoices to purchase orders, there is lot of paperwork and documentation involved in inventory management. Several software programs are available in market, which help in inventory management.

Inventory management software helps create invoices, purchase orders, receiving lists, payment receipts and can print bar coded labels. An inventory management software system configured to your warehouse, retail or product line will help to create revenue for your company. 

The Inventory Management will control operating costs and provide better understanding. There are source for inventory management information, inventory management software and tools.

A complete Inventory Management Control system contains the following components:

·       Inventory Management Definition

·       Inventory Management Terms

·       Inventory Management Purposes

·       Definition and Objectives of Inventory Management

·       Organizational Hierarchy of Inventory Management

·       Inventory Management Planning

·       Inventory Management Controls for Inventory

·       Determining Inventory Management Stock Levels.

The ultimate value of inventory management software is directly related to the integrity of the data entered into the system. If the physical goods in the warehouse do not correspond with the digital information, get ready to grit your teeth.

Effective inventory management is more than just blips on a screen ... its how those blips relate to what's actually sitting on the pallets.  Click here details: http://Infosdemocracy.com