Effective Inventory Management Process is Vital to Business

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Recommended: Explain the importance of inventory management

Inventory Management Processes
Given the core nature of the problem, it is important to take a look at the different concepts for more efficient inventory management practices in order to reduce the WIP inventory at all stages. Inventory management is one of the key concerns for manufacturing set ups in order to be successful. Manufacturers suffer from inefficient inventory management because of their business settings. Many operational and structural conditions cause inappropriate inventory management and inventory related problems surface every now and then.
Some suggested areas that can address the cause for this pile up of inventory at every stage are as follows-
Information Systems
Firms should have a good information system to view accurate demand and inventory levels and to monitor policies more consistently in order to develop an efficient inventory management system. Having a firm-wide inventory management information system could be a feasible solution as it facilitates many inventory related technology usage.
An acceptable technology, a specified and robust inventory management strategy, an adequate inventory record keeping and auditing, and specified performance measures are the most important inventory related working conditions. Management, first and foremost, must give priorities and expectations that are necessary for accurate inventory records.
There are various reasons for incorrect records. (Among the reasons of inaccurate inventory recordkeeping are products coding mistakes, counting mistakes, taking a wrong product from stocks, not keeping record of defective inventories, communication lags leading to late update, etc.).The more capital is invested towards information systems, the lesser will be the potential...

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...in expediting their production process so as to reduce the work in process inventory[9].
These managers have the responsibility of managing (and growing) their firm’s relationship with major clients, coordinating professionals across the various disciplines of the firm and often across geographic boundaries. The role of the key account manager remains a complex and often ill-specified responsibility because geographic or discipline groups are frequently made up of separate profit centers. Places where such positions have existed for many years, there continues to be frequent change and significant experimentation as client needs and the required response from firms continue to evolve.
This concept can be used for the firm to focus more on these important accounts and thereby help in expediting their production process so as to reduce the work in process inventory.

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