2. INVENTORIES
• Inventory is defined as the set of assets that a company
possesses in stock. Inventories in a company covers raw
material inventory, work in process inventory,
maintenance/repair and finished good inventory.
3. TYPES OF INVENTARY
• Organizations establish the functions of inventory
according to the items and purposes. PRO MILK uses
finished-goods inventory: they are products finished to
export and to be shipped to customers target market in
France.
4. INVENTORIES POLICIES
Inventories are the most complex part of the companies, due to the link it
has with the cycles that develop as the case of sales, portfolio, expenses and
income; also depends on the good management inventories that
determinates the costs of the final product. Inventory cycles involved in the
company are:
• Purchase Order Processing: are used to perform the purchasing
department enlistment for items needed for inventory. When the
inventory reaches a predetermined level the orders are placed for
materials required for a customer order.
• Receiving materials: those are inspected in quantity and quality,
quantities are verified vs. delivery note and invoice for the order to be
part of the inventory and this is supplied with the product taken. (BPM).
• Storage of raw materials, when the materials are stored in the warehouse
until required for production, that by order approved.
5. INVENTORIES POLICIES
• Processing items: is defined by the quantities to be produced, is
usually based on customer orders, sales forecasts, predetermined
levels of finished product inventories.
• Storage of finished goods: as the production department finishes the
product, pass to the warehouse or to their respective office.
To provide a fundamental basis for inventory,control lies in providing a
reliable and accurate information on existing quantities of each product
and its physical location. This information allows the analysis to other
units such as Purchasing and Production, turnover of goods with which
they can make quick decisions, and knowing at all times how many are
the assets of the company by managing all good information and by
support implementation of tools that enable better management of
inventory control.
6. INVENTORIES POLICIES
• To make it clearer to stock and by identifying inventory cycles (named on previous page), you
should structure the staff functions that are in areas where there is higher demand, so that the
work done is faster and to keep real inventory balances for decision-making in all areas of the
company, the operator that receives raw materials is not the same that dispatch and it has to
be able to implement a 15-day management stock of the references that are in greater demand
and depleted generate or delays in their respective office.
• For better planning, is necessary to keep track of inputs and outputs in the warehouses,
production and product delivered and most importantly handle cycle inventory. to establish the
exact numbers of existing assets you must assign a person who engages in perform these daily
task, for the billing department is imperative that the request is checked by the customer
performed without a hitch.
• To avoid differences in each product shipments is necessary verifications and finished product
counts, finding quantities released vs quantities listed in the bill, all recorded by a paper
delivered product, you should do the staff responsible for billing staff offices, and turn benefits
from being a point of reference for verification of product having units unlike any eventuality
to occur.
7. INVENTORIES POLICIES
• When no returns or exchanges recorded in customer presented at the time, this alters the
inventory figures both outputs (changes) as inputs (breakdowns), is essential to assign a
responsible product integrity to the company, by daily report, informing the reasons given by
the client, the status of the product, the amount received. The record output of products to
cover a shift or returns, helps to maintain an updated inventory changes that would decrease
in numbers and / or missing product for not having an updated inventory.
• The differences that can occur in an inventory can arise for typing errors, bad count, a bad
office, not to enter an invoice, mishandling reports of the personnel. Training is indispensable
constantly in each area that need to be involved to have a real inventory, both accounting and
physically, sensibilized the staff to the position, they are is assigned and always have a new
verification supervisors if any inconsistency.
• The logistics area must comply with the job of ensuring the quality of service to meet
customer needs, build on the actual information that has inventory, continuous consultations
with clients in the event that this product is sold out, all this for continuous improvement of
the company.
8. CONCLUSIONS
• Inventories are essential in a company, it is no longer storage if not constant movement of
articles, direct flow, offices, production, delivery, it is essential to inventory to be more
productive through new tools for visibility, agility and control .
• Take a good inventory management helps reduce costs, increase sales and become a more
competitive market, to identify the product that is about to expire, quality standardization, has
used space, is known accurately assets of the company, with the goods you have and how you
need and foremost with a good inventory management utilities available.
• By monitoring the inventory you create accurate, avoiding shortages and fluctuations in peak
seasons.
