by Inventory Software Consultant
Inventory Management and Inventory Control are required in order to keep capital costs low while maintaining production lines.

Reasons for maintaining stock:
A company requires to maintain adequate inventory of crucial items for two basic reasons:

1. Lead Time between placing an order and delivery to your site. There is always a time lag in the supply chain at every intermediate stage some of which may be uncertain or difficult to estimate very accurately. This uncertainty requires inventories to be maintained as buffers

2. Bulk buying brings economies of scale because suppliers tend to charge lower per unit cost for larger quantities as their overheads in processing and delivery do not vary much with size of order.

Inventory Management and Inventory Control has to be designed to be in sync with the market situation while at the same time meet the company’s goals. The changes in the demand for the product, challenges of creating new opportunities in worldwide marketing, opportunities for global sourcing of materials and new manufacturing technology, means companies need to adapt their Inventory Management approach to the situation and change the way they manages their Inventory.

Inputs for devising an effective Inventory Management and Control system are taken from many other departments:

Marketing or Sales Departments who forecasting demand for your productProduction and Operations Department who estimate the demand for the inputs required in the assembly lines to keep them going smoothly.

This helps to plan material requirements in advance and keep inventories low.

How much each factor effects to evaluation procedure and the importance to be assigned to each factor will vary from case to case depending on the type of company and the proximity and response time of its suppliers as also the market demands for its products. Each contributing factor will need to be assessed for its impact on the evaluation process in order to have a successful Inventory Management and Control procedure in place.

For over 20 years ASAP Systems has been providing proven solutions for automated data collection and tracking of assets, items and inventory to some of the world’s premier enterprises.http://www.asapsystems.comCall or e-mail us for a free evaluation of your Inventory Management and Inventory Control concerns.

Article Source: Inventory Management and Control