Before defining Inventory Management, it is helpful to review the definition of inventory.
Inventory is the raw materials, components and subassemblies used to support the manufacture of products. But inventory can also include maintenance, repair and operating supplies needed to support the business operation.
Different Names, but Still Inventory. It is important to realize that many things happen before, during, and after inventory is transformed into a saleable product.
So, it is important to include these issues when working on inventory management, e.g., non-conforming raw materials, customer or product returns, product expiration (be it a raw material or finished well), etc. So, these additional inventory classifications, especially the Excess and Obsolescence (E & O), affect the company’s bottom line.
Inventory Management. So, inventory management is the work of controlling and managing ‘all’ inventory at every stage of production, i.e., before, during, and after product transformation.
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Inventory Management. “Can You Avoid the ‘Deadly Sins’ of Inventory Management?” The purchase and storage of raw materials typically represents the single largest investment for a manufacturing company. To learn more, please follow this link.
Purchasing Requisitions Systems: The ‘EZ Requisition Program.’ Does your company have a purchasing requisitions system that is simple, convenient, and easy to use, yet allows procurement to get the job done quickly? For more on this topic, please follow this link.
Supplier Sourcing. Companies rely on the revenue streams generated by their product lines. The expectation of better than market pricing for these products and services can depend heavily on the development and execution of the company’s supplier sourcing strategies. For more on this topic, please follow this link.