cash flow
What does “effective inventory management” mean?
Let us analyze this phrase in parts: stocks, management, efficiency.
Inventories (stocks – eng.) – these are the supplied raw materials, materials, components, work in progress from them, finished products, purchased goods, means of production and objects of labor stored in the enterprise. They are formed every time when incoming or outgoing material resources are not used at the enterprise, although they are available. A stock is a material flow that has stopped its movement, temporarily or permanently (forever). Without stocks, at least minimal, it is impossible to manufacture finished products, works, services, trade in goods is impossible. Therefore, any company has stocks in one or another quantity. Continue reading
Practical sense to know the basics of effective enterprise stock management
What is the role of effective inventory management for enterprise logistics?
This is a question of what is primary and what is secondary in the logistics of an enterprise. Or, in other words, where the horse should be: in front of the cart or behind it.
The logistics function “Inventory management” is a “horse” in relation to all other logistics functions of an enterprise that are “cart”. The role of effective inventory management for the enterprise’s logistics is the master or the leading one: first, a decision on effective inventory management must be made (designed), and then this decision must be “recalculated” into the content of other enterprise logistics functions, including “Warehousing” and “ Management of transportation of goods in the input and output logistics of the enterprise “. Continue reading
Basics of Effective Entrepreneurship
How does optimal stock management and effective inventory management compare?
Optimal inventory management is SKU inventory management that meets any criterion (rule) of optimality, i.e. the best fit rule. The criterion of optimality consciously or unconsciously selects the subject of management, for example, a specialist in inventory management. Consequently, the correctness or inaccuracy of the choice of inventory management criteria determines the optimality or nonoptimality of their management.
The criterion for optimizing the inventory management of an enterprise should best suit its marketing, production, logistical and financial situation and the highest economic goals of the enterprise. Continue reading
