The inventory management

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The inventory management by Mind Map: The inventory management

1. Definition

1.1. supervision of goods

1.2. monitoring of all the processes that the items or goods have to follow for them to be ready to be given to the customers or storehouses.

2. Function

2.1. To monitor goods all over the process since they go out of the factory to the final location

2.2. Also to keep a detailed register of all related to the factory items or goods such as serial numbers, location numers, date of frabrication, etc.

3. Benefits

3.1. 1 it increases sales by managing a good inventary

3.2. 2 it increases the data transparency: in terms of knowing when the items are shipped, packed and picked.

3.3. 3 it allows a shorter lead time.

3.4. 4 Low prices: effective inventory allows non necessary processes which reduce prices.

3.5. 5 it improves the delivery performance by having a better flow of goods to the customers.

3.6. 6 It increases the employees efficiency: less time spent on non necessary processes can be inverted in productivity.

3.7. 7 It helps you follow a plan step by step having clear the next movements that must be applied.

3.8. 8 It decreases stock-outs

3.9. 9 Increases customers loyalty: knowing what they want and having a guide that help you identify the customers necessities and they will love that, which will rise their fidelity.

3.10. 10 increase inventory turn-over: having all items and goods in movement will allow a great flow of both new and returned or damage products in the factory.

4. Tips for improving your inventory

4.1. * Do not miss sales due to out of stock items: the inventory helps you know the items that are sold faster and which ones are missing.

4.2. * Do not waste cash in overstocked inventory: you just need to know what to buy and what is not that necessary.

4.3. * Improve your counting and profit reporting: it is impotant to have a guide of all what you buy or invert in the items on the balance sheet.

4.4. * identify problems before they appear: a good inventory will help you know what are those possible troubles you will face up. Which having them clear, you can solutionate them as soon as possible.

4.5. * Customer service: a good customer service is gotten by checking the proper lead time and not having any obstacle with item delivery. All this is possible by having a great inventory.

4.6. * Effective reordering: with a good inventory, your ordering process will be easier and more valid.

4.7. * Decrease thefs and cost: with a constant inventory you will give low oportunities for thiefs and also you will identify damaged products which will reduce costs.

4.8. * Trust your information system: try to have a software up to date for you to have a have a reliable system in which you can trust.