Tracking physical goods.
WHAT INVENTORY MANAGEMENT MUST TRACK
What is held Where it is What it cost What is committed to orders What is on order
WHY COMMITTED STOCK MATTERS
Available stock is what is held minus what is promised.
WHAT COSTING METHODS EXIST
First in, first out Weighted average Standard cost, with variances
WHY THE CHOICE MATTERS
It determines reported profit and inventory value.
WHAT TO ESTABLISH
Which method, agreed with your accountant, consistently applied.
WHAT STOCK COUNTS VERIFY
That records match reality.
WHY THEY ALWAYS DIFFER INITIALLY
Theft, damage, miscounting and unrecorded movements.
WHAT CYCLE COUNTING PROVIDES
Continuous partial counting, rather than one disruptive annual count.
WHAT REORDER POINTS AUTOMATE
Purchasing when stock falls below a level.
WHAT THEY REQUIRE
Accurate lead times and accurate stock records.
WHY ACCURACY IS EVERYTHING HERE
Automated ordering on wrong data orders the wrong things.
WHAT MULTI-LOCATION SUPPORT REQUIRES
Stock tracked per location, with transfers recorded.
WHAT SERIAL AND BATCH TRACKING PROVIDES
Traceability of individual items or batches.
WHERE IT IS REQUIRED
Regulated goods, warranties, and recalls.
WHAT TO CONSIDER LOCALLY
Import lead times, which make reorder points longer than defaults assume.
