subject: Approaches For An Escalating Business [print this page] Inventory management unlike its assumed relation to invention is surprisingly related with something to do with the stocks that will necessarily do a business. Basically, inventory management refers to the process of managing products either finished, semi-finished or raw materials of the firm in order to increase the productivity and product quality. The basic advantage of inventory management is it optimises the inventory levels and investment and increases the turnovers.
All inventory management systems have different outlook towards their managing strategies depending upon the complexity of the model like an automobile inventories need 50% of the total asserts while a hotel need about 2-5%. Therefore there are many types as well as working systems for every inventory, but the work of the basic inventory management system starts as soon as the production is started.
Once, the first order has been placed, the inventory system starts working for the storing place of the delivered products. Also, then a lot of paper work and documentation must be done in order to complete the whole process.
This whole work of inventory system is achieved using different types of inventory control management systems, which are:
Since the above method has some dependencies which causes confusion as well as loss, another control method increasing its efficiency is re-order method which lay emphasis on structured and ordered planning, escalating its gain.
Also perpetual inventory control method and ABC control methods are used which divides the stock into groups and keep the daily record of the stock with the item name, cost and structure for avoiding the negative feedback from the clients.
For a business to be rationalised, systemize, and manage product distribution, a sequential supply chain solution is a crucial first and foremost step which may vary for different industries, because of the fact that the requirements of different industries vary greatly. A proper management of inventories right from the planning of delivering the products to the final target, whole can be managed by the group of logistics management. Hence arrangement and implementation of supply chain methodology is dependent over the type of company to which one is catering. The suggestion for logistic solutions consists of end to end organization and world class implementation of each system. Right from conceptualization to execution, each step must be done as per companys features. The uniqueness of every solution greatly depends on research and development which is present there behind every project. The major steps can be the same but additions which are done lately or new implementations are performed keeping in mind
Logistics is a huge industry which focuses on the cost of transportation by keeping an eye on every small calculation right from the expenditure on petrol to machinery of vehicle. Many big companies prefer roads over rails because of many reasons. Many of them may be like Railway strikes that lead to a break in the network; Commuters are greatly forgiving over Companies, Low fuel costs for trucks prior to fuel rises few years ago, Least capital investment costs in buying a fleet of trucks, Least repair costs of trucks which are robust and truck parts .There is big change which is required financially and environmentally for companies which transport the products commercially.
