What is the significance of inventory management?

Inventorycontrol, also known as inventory management, is to manage and control all kinds of commodities, finished products and other resources in the whole process of manufacturing or service industry production and operation, so as to keep its reserves at an economic and reasonable level.

The contents of inventory management include warehouse management and inventory control. The content of warehouse management refers to the scientific storage of inventory materials, reducing losses and facilitating access; Inventory control is to control a reasonable inventory level, that is, to maintain a reasonable inventory with the least investment and the least inventory management cost, so as to meet the needs of users and reduce the loss of shortage. The contents of inventory management: material in and out, material movement management, inventory counting and information analysis of inventory materials.

The significance of inventory control:

(1) The role of inventory control

Mainly: under the premise of ensuring the production and operation needs of enterprises, keep the inventory at a reasonable level; Grasp the inventory dynamics, place orders in a timely and appropriate manner to avoid inventory backlog or shortage; Reduce the occupation of inventory space and reduce the total inventory cost; Control the occupation of inventory funds and speed up capital turnover.

(2) Reasonable control of inventory

Problems caused by excessive inventory: increasing warehouse area and inventory storage cost, thus increasing product cost; Occupy a lot of working capital, resulting in sluggish funds, which not only increases the burden of paying interest, but also affects the time value and opportunity income of funds; Causing tangible and intangible losses of finished products and raw materials; Causes a large number of idle enterprise resources, affecting its rational allocation and optimization; It covers up all kinds of contradictions and problems in the whole process of enterprise production and operation, which is not conducive to improving the management level of enterprises.

Problems caused by too little inventory: the decline of service level, affecting sales profit and corporate reputation; Insufficient supply of raw materials or other materials in the production system, which affects the normal production process; Shorten the ordering interval, increase the ordering times and increase the ordering (production) cost; It affects the balance of production process and the integrity of assembly.