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Inventory Control

Inventory Control

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nventory Control is designed to support the requisition processing, inventory management, purchasing, and physical inventory reconciliation functions of inventory management through a set of highly interactive capabilities.


Overview

  1. To provide information on the availability of stocked items and the status of stocked requisitions
  2. To facilitate timely requisition processing
  3. To automatically record and service backorders
  4. To help minimize inventory investments consistent with service objectives by basing purchasing decisions on usage history
  5. To provide automated tools to assist servicing, purchasing, and management of the inventory
  6. To improve financial control of the inventory by chargebacks to the user organizations
  7. To improve financial control of the inventory by periodic reconciliation of the inventory balances with the physical counts

The Inventory Control module for the Sage Business Works Accounting system provides this level of control by offering high-end features normally reserved for large companies, including light manufacturing capabilities, serial number tracking, and multi-warehouse support. Inventory Control even features an image library that allows you to assign a picture to each part. Improved customer service leads to increased profitability. And, when integrated with the Accounts Receivable and Order Entry modules, Inventory Control can significantly boost your customer service levels while operating as the cornerstone of an effective manufacturing or distribution solution. For more complex project management, Inventory Control can be coupled with the Job Cost module to help track all inventory-related expenses for a project. Inventory tracking is enhanced even more when integrated with the Custom Office module, which creates detailed spreadsheets to provide further analysis of inventory performance. The Inventory Control system offers comprehensive reporting capabilities to keep you on top of inventory status. It can help you bring about the creation of new or improved purchasing policies, sales policies, pricing methods, and even enhanced customer service. By leveraging Sage Business Works, you have the tools to create an inventory system with the depth to meet your requirements.

An inventory control system is an integrated package of software and hardware used in warehouse operations, and elsewhere, to monitor the quantity, location and status of inventory as well as the related shipping, receiving, picking and put away processes. In common usage, the term may also refer to just the software components. Modern inventory control systems rely upon barcodes, and potentially RFID tags, to provide automatic identification of inventory objects. In an academic study performed at Wal-Mart, RFID reduced Out of Stocks by 30 percent for products selling between 0.1 and 15 units a day. Inventory objects could include any kind of physical asset: merchandise, consumables, fixed assets, circulating tools, library books, or capital equipment. To record an inventory transaction, the system uses a barcode scanner or RFID reader to automatically identify the inventory object, and then collects additional information from the operators via fixed terminals (workstations), or mobile computers. An inventory control system may be used to automate a sales order fulfillment process. Such a system contains a list of order to be filled, and then prompts workers to pick the necessary items, and provides them with packaging and shipping information. Real time inventory control systems use wireless, mobile terminals to record inventory transactions at the moment they occur. A wireless LAN transmits the transaction information to a central database.

Inventory management

Inventory management 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 there 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

Supply Chain Inventory management

A supply chain consists of three parts - procurement of raw materials and semi-finished products, converting them into finished products, and distributing them for sale. In this context, supply chain inventory management implies that the inventory should be managed in such a way that the supply chain can function without any shortages or excess burdens of large supplies.

Supply chain inventory management starts with the chain of suppliers who supply raw materials and semi-finished products. A person who is managing the supply chain is supposed to forecast

The demand and supply of various products of the firm; the inventory management is done accordingly. If the forecast indicates a higher demand in the near future, greater supplies of raw material and finished products have to be procured. Also, the process must be completed in time and without resulting in cost overruns.

A crucial part of supply chain inventory management involves managing warehouses. It helps in the proper storage and transportation of raw materials to production units, as well as the distribution of finished products through a chain of retailers and wholesalers. Supply chain inventory management ensures that the finished products are delivered at specific locations according to the pre-determined schedule. Keeping in view the dynamic state of markets all over the world, supply chain inventory management has become a crucial factor in deciding the overall profits of a firm. Poor supply chain inventory management could spell disaster for any company. The higher the inventory investment as a percentage of total assets of a company, the higher the damage caused by poor inventory management. To ensure that this doesn't happen, there are various software tools available in market to help in supply chain inventory management. They are cost-effective, easy to use, and expedite various processes involved in supply chain inventory management. Thus, they are increasingly becoming popular. One can get customized software to suit one's specific needs also.