Good distribution management includes effective inventory management. And, inventory management is very determining whether or not a production process smoothly storage facilities. For this reason, this inventory must be managed properly, even based on information technology systems. The use of 儲存倉 is sometimes not matched by careful planning.
There are several considerations of the company when managing inventory. Among others, to anticipate the risk of delays in the arrival of goods, to anticipate material orders that are not by what is needed by the company so that returns must be done, to ensure the smooth production process. However, the main purpose of inventory management is to maintain a balance between the amount of stock of goods to be at a safe level and the ability to ensure goods that are available in the warehouse will arrive at customers in good condition.
The ability to maintain an equilibrium inventory is important because if inventory in the warehouse is excessive it will have a high cost. Among others: storage costs, interest costs, and the high risk of damage to goods. Meanwhile, if there is too little inventory, there is a risk of obstruction in the delivery of goods to the customer. This means there is a potential loss of sales and customer dissatisfaction because the goods received are not timely.
Conversely, if the stock in the warehouse is always maintained (buffer stock) so that customer needs can be met properly, then the risk of lost sales can be avoided, and inventory costs will be small. Besides, adequate inventory will also reduce the risk of switching barriers, i.e. the likelihood of customers switching to competitor products.
Good and effective inventory management also allows the process of shipping goods to customers faster. There is very little possibility of the wrong item. And, the position of the stock of goods in all locations can be known quickly and precisely. Of course, this condition is very influential in making estimates (estimates) of supply and demand for goods to suppliers or principals.
So, how to effectively manage the stock of goods in storage?
First, recording data accurately regarding: input in and out stock.
Second, after having accurate data, the next step is to make an inventory forecast of how much inventory is needed this period. This is not an easy stage if the company has a large and diverse range of product sales. Because must determine the amount per item.
Third, arrange the inventory schedule, by determining the inventory purchase schedule and inventory schedules that will leave the warehouse.
Fourth, do inventory budgeting. This estimate is done at the beginning to adjust the company’s capabilities. Then record all cost of goods sold (COGS) and selling prices to find out what the estimated revenue would be if the goods were sold out.
Fifth, determine the right way to save. In addition, you also need to think about the expiration period. So every inventory or stock of goods must be recorded expiration date.