What are the methods of enterprise inventory control

Currently more practical traditional inventory management methods

1. ABC inventory classification management method

This is a simple, practical and scientific management method. According to the value of inventory materials in the warehouse all materials are divided into three categories. The number of types of materials is small, but the value of the material for the A class, for the important materials. This type of material should focus on management, strict control of inventory, and thus reduce costs and improve efficiency; types and quantities are more, but occupy very little money for the C class materials, is not important materials, general management and control of simple; other materials are categorized as class B, the number of types and funds occupied are between the A class and the C class materials, to take a compromise management methods, general management and control.

But ABC inventory classification management method is not perfect, in actual production, the value of inventory materials is not equal to its role in production. Some materials are of relatively low value, but play a key role in production; some materials are of high value, but not a key factor in production. Therefore, according to the key factors for evaluation and management is another more effective inventory management method.

2. Key factor analysis method

According to the size of the inventory materials in the production and operation of the key, they are divided into four levels, respectively, the highest priority, higher priority, medium priority, lower priority. Different levels of different management methods,

Management points: the highest priority materials are not allowed to run out of stock, because it is a key factor in the production of occasional shortages will lead to production can not be normal. In order to ensure supply, generally and such material suppliers to sign a long-term contract, into a strategic partner. Higher priority supplies allow for occasional stock-outs because basic supplies have more suppliers in the market and the choice can be made quickly. Medium-priority materials, more important in production, but not a critical factor, so its shortage will not bring decisive impact on production, can be out of stock within a reasonable range, and its demand can be calculated according to the production schedule plan, which is also a way to reduce the cost of inventory management.

The critical factor analysis method is relatively more applicable to productive companies. For sales-oriented enterprises, such as Carrefour, Wal-Mart, critical factor analysis will need to make the necessary adjustments, can be based on the number of days of monthly sales of goods (i.e., how many days in a month such goods are sold) as the basis for division.

The ABC method of inventory classification and management and critical factor analysis both use one factor to divide the supplies in inventory. In fact, only one factor is not completely objective to reflect the role of inventory materials in production or in value. For example, there are C materials, despite its lower price, but if the risk of shortage of such materials is high, the market is not easy to purchase, and still carry out the general management control, then it may cause misjudgment and can not be supplied in a timely manner, which will have an impact on the production and operation.

Therefore, better results can be achieved if inventory materials can be divided by two indicators and managed on this basis.

3. Supply segmentation method

Two factors are used to categorize inventory materials. One is cost/value, which is used as the horizontal coordinate; the other is risk and uncertainty, that is, how easy or difficult it is to obtain this material in the market, which is used as the vertical coordinate. In this way, inventory materials can be classified into four categories.

The value is relatively low, it is easy to buy in the market. And less risky materials are classified as strategic materials. Management focus mainly on the management of cost control, need to pay attention to the management of the transaction process, focusing on the whole procurement process cost reduction. Higher value, less risky materials in the market are categorized as leveraged materials. Leveraged materials of high value, inventory costs, but the market supply is sufficient, easier to buy, therefore, the management focus should be placed on the control of inventory costs, can be considered on the basis of not affecting the supply of a variety of methods to effectively reduce the cost of direct purchases, and suppliers to sign a short-term contract, in order to be able to continue to seek, replace, and turn to lower-cost resources.

Currently more practical methods

1. EKP environment of inventory management

Enterprise Resource Planning (Enterprise Resource

Planning, ERP) is based on MRP and MRPII, supply chain management as the core of a highly integrated information system. It integrates customer demand and internal production and supplier resources through logistics, information flow and capital flow, enabling companies to effectively manage all business processes in the supply chain, such as purchasing, inventory, planning, manufacturing, quality control, customer service and so on.

ERP material management includes material procurement, quality inspection, receiving, shipping, reservation, warehouse management, material movement, inventory count, material demand planning and report query, etc. ERP establishes inventory for all materials through material master data, and is able to combine the demand of internal departments as well as the supply chain from outside the enterprise's purchase order information, customer demand information, etc., and automatically balances inventory and automatically generates inventory by MRP, and automatically generates customer demand information. MRP automatically balances the inventory, automatically generates the material procurement plan, determines when to order procurement, effectively shortens the material procurement and supply lead time, improves the accuracy of the material plan, ensures stable logistics to support the normal production of the enterprise and minimizes the occupation of the capital; in addition, the ERP system is able to dynamically adjust the inventory along with the state of the material in storage, out of storage, etc., which accurately reflects the current status of the inventory; and analyzes the reasonableness and problems of the material inventory through the report query. ERP realizes the information *** enjoyment of each department within the enterprise, can effectively reduce the inventory, save management costs, maximize the use of existing resources to achieve the maximum economic benefits of enterprises.

Inventory management in the ERP environment, mainly to the core of the enterprise's internal inventory management, to achieve the enterprise's value-added supply chain, but the lack of a holistic view, failing to take into account the supply chain chain links in the inventory of external enterprises on the internal inventory of the enterprise's impact, the lack of cooperation and coordination between enterprises, information transfer efficiency is low, etc..

2. Inventory management in the supply chain environment

Supply chain inventory management, i.e., inventory management under the supply chain management model, aims at realizing the seamless connection of enterprises in the supply chain and eliminating the phenomenon of high inventory between supply chains.

Inventory management methods and strategies based on supply chain management include JIT, supplier-managed inventory and jointly managed inventory.

The inventory management mode in the supply chain environment can integrate enterprise resources, strengthen the cooperation between enterprises, realize the comprehensive information communication between internal management and external business, monitor the supply chain in real time, make the internal and external enterprises realize the efficient cooperation and decision-making, make the inventory area reasonable, realize the shortage of goods and the inventory at the same time to reduce, reduce the duplication of inventory, save the logistics cost, eliminate the bullwhip effect The impact of the bullwhip effect is eliminated, and the competitiveness of the enterprise is improved.

With the global integration of economy and the rapid development of e-commerce, supply chain management further develops in the direction of higher level of integration, and e-commerce and supply chain management organically combine to form integrated supply chain management.

Integrated supply chain management realizes the seamless integration of external e-commerce and supply chain management/enterprise resource planning/customer relationship management (SCM/ERP/CRM) and other information systems, which forms a dynamic, virtual and global networked supply chain network, realizes the work coordination and information **** enjoyment between different enterprise members in the supply chain, and realizes the dynamic control of the enterprise and the integration and optimization of resources. Integration and optimization of resources, integration of all business activities into e-commerce, overcoming the shortcomings of inventory management under the traditional supply chain, focusing on the relationship between the total logistics costs from raw materials to the final product and the level of customer service, maximizing the overall ability to give full play to the supply chain to reduce procurement costs, speed up capital turnover and inventory turnover, reduce inventory, shorten the production cycle, and improve the response speed of the enterprise to the market and the ultimate customer demand, thereby enhancing the market competitiveness of enterprises.

The above analysis of inventory management from a single factor to multi-factor analysis, from the internal factors to the external factors of the enterprise comprehensive analysis, from the traditional manual management to information technology analysis of modern management, from the isolation of the information island to a high degree of information integration **** enjoy multiple aspects, multi-angle analysis. It is not difficult to see that both the traditional inventory management (www.chinatpm.net) approach and the modern inventory management approach of informationization have their own advantages and disadvantages. Although the integrated supply chain management in the e-commerce environment will become the development trend of modern inventory management for enterprises, it is difficult for enterprises to establish integrated supply chain relationships with suppliers of all materials because of the wide variety of materials and the highly integrated supply chain involving many enterprises. Enterprises need to be based on their own actual situation, the synthesis of the above inventory management methods, a reasonable choice of inventory management strategy, to seize the key, efficient operation, to improve the overall economic efficiency as well as social benefits.