Developing an Inventory Control (I/C) System
Posted by Steven in Developing an Inventory Control (I/C) System
Inventory is an asset that is by nature always in movement – or the company may not have long to worry about it! So, its sometimes difficult to create an effective inventory control system to keep track of everything everywhere as it moves through the channels. But approach it logically and all the elements should fall in to place. And with current computer technology, inventory tracking can be managed as effectively as your budget will allow.The first reason to develop an inventory control system is to track the inventory as it progresses through the process and to assess its value. That may be relatively simple for finished goods- basically a matter of counting boxes, cans, or kegs. The true challenge of inventory is to measure its increasing value as it goes from, say, a pile of oak lumber to a chest of drawers. Inventory control systems help companies understand and measure that value.
The more common use of inventory control is to keep a constant count of finished inventory for sale. More so than the pile of lumber, the finished chest of drawers and other items with retail worth can be better leveraged for financial purposes, have greater market value, and offer a truer picture of a company’s net worth.
