How a manufacturing company can manage its’ Inventory Stock?
Business Analyst | 17 October, 2019 (Thursday)View 2690
For a manufacturing company, controlling inventory stock is very important. Without controlling inventory stock, a manufacturing company never be able to control its’ actual business condition. In this article, it will be discussed about how a manufacturing company can manage its’ Inventory stock.
Record each & every inventory movements and generate different report
A manufacturing company must identify and record bellow of material or finished goods movements must be recorded accurately
- Receive
- Issue
- Return
- Transfer
- Shipment
By rocording those inventory movement, it can be generated bellow report to manage inventory
Material movements report
- To know all materials/goods receives, issues, transfers, returns information
Inventory balance report
- To know how much materials/goods are available in stores
Inventory order status report
- To know material/goods order quantity to suppliers, received quantity from suppliers, pending received quantity from supplier, return quantity from supplier etc.
Supplier delivery performance report
To know
- Is supplier deliver the materials/goods on time or not?
- How many orders materials/goods are delivered on time?
- How many orders materials/goods are not delivered on time?
Supplier quality performance report
To know
- How much materials/goods are quality passed?
- How much materials/goods are quality failed?
- What is the defect and passed rate?
Production follow up & control report
To know
- How much material are issued to production?
- How much material are return from production?
- Is material short or excess in production?
Count inventory stock regularly
To manage inventory stock, a manufacturing company must count the inventory stock level periodically. By this, check the recorded inventory matched with physical inventory or not and do necessary step to correct.
Develop inventory team
An inventory control team must be developed and provide responsibilities to manage the inventory stock by monitoring each & every inventory movement and generating different reports
Organize store properly
Store or Warehouse should be organized properly by Zone, Location and Racks so that materials/goods can be traced at any time without any hassle.
Use ERP technology to record all inventory data
There are hundreds of inventory transactions can be happened in a manufacturing company. If those are recorded in paper or a excel sheet, it not possible to visible to everybody and not possible to handle those data efficiently. And not possible to connect with supplier purchase order, customer sales order and production order. Therefore, a standard ERP application must be used to recorded all inventory transactions efficiently.
Train store people on Inventory control
Store people are key to control inventory by maintaining accurate data. Store people must be trained on different inventory processes. They need to be smart enough to maintain inventory accuracy.
Final thoughts
A manufacturing company must record each & every stock transaction. Other wise it’s not possible to generate inventory reports as well as can’t analyze the inventory stock. If inventory team can not analyze the stock, it’s not possible to control inventory. At the end company will get over stock day by day and lose business from the market.
