There are many software available in tracking the stocks movement and doing the logistics planning. The software not be feasible or cost-efficient to small-sized company, while it is absoultely suitable for medium-sized company. Logistics planning is an important part of Wal-Mart success.
A very good software we have used is SAP software, which is essentially a well-developed inventory management software to plan the logistics flow of the Company.
Sunday, September 28, 2008
Tuesday, September 23, 2008
#4 Inventory Management- Obsolete Stocks
Quantity of obsolete stocks could be controlled or managed via:
1) emphasizing quality checked on stocks received and returned the goods to suppliers by adhereing to quality policy of the Company
2) order minimal amount of stocks based on sales forecast, rather than purchasing a huge sum of stocks on hand.
We want to emphasize on point 1 that, company should have a clear inventory checking policy and forming a culture of adhering stocks' quality policy. Damanged stocks/ faded stocks have to be returned to suppliers immediately. Besides that, SME entrepreneur should communicate the policy to suppliers, in order to acknowlege the suppliers in respect of the quality policy of the Companies
1) emphasizing quality checked on stocks received and returned the goods to suppliers by adhereing to quality policy of the Company
2) order minimal amount of stocks based on sales forecast, rather than purchasing a huge sum of stocks on hand.
We want to emphasize on point 1 that, company should have a clear inventory checking policy and forming a culture of adhering stocks' quality policy. Damanged stocks/ faded stocks have to be returned to suppliers immediately. Besides that, SME entrepreneur should communicate the policy to suppliers, in order to acknowlege the suppliers in respect of the quality policy of the Companies
Monday, August 18, 2008
#3- Inventory Management ( Post II)
In #2, we mentioned a few common inventory problems faced by Small and Medium Enterprises. And we intended to summarize the solutions in this post and a few coming positngs.
The very basic solutions are to have a proper stock records, that have keep tracked on the following:
1) Stock Balance information
2) Recording of stock-in
3) Recording of stock-out
We noted that most of the SMEs do not have a proper stock records, and some of the enterprises do not even know the stocks on hand. A proper stocks record enable the owner of the SMEs to develop an understanding on the stock turnover of every single stocks. With such information, the manager is allowed to monitor the purchase more accurately, or even forecast the seasonal sales pattern of respective stocks.
Accumulation of excess stocks represents a cost ( finance cost, maintenance cost), a proper stock movement allow the manager to forms a fundamental basis of developing the Company's purchase pattern without bias (as the manager will be assisted by numerical data).
The very basic solutions are to have a proper stock records, that have keep tracked on the following:
1) Stock Balance information
2) Recording of stock-in
3) Recording of stock-out
We noted that most of the SMEs do not have a proper stock records, and some of the enterprises do not even know the stocks on hand. A proper stocks record enable the owner of the SMEs to develop an understanding on the stock turnover of every single stocks. With such information, the manager is allowed to monitor the purchase more accurately, or even forecast the seasonal sales pattern of respective stocks.
Accumulation of excess stocks represents a cost ( finance cost, maintenance cost), a proper stock movement allow the manager to forms a fundamental basis of developing the Company's purchase pattern without bias (as the manager will be assisted by numerical data).
Wednesday, August 13, 2008
#2 SME Issues I- Inventory Management
We noted the following current issues faced by SME with respect to Inventory Management:
- Slower inventory turnover, compared to industry standard
- Accumulation of stocks due to lower sales
- High % of obsolete stocks on hand
- Declining market value of stocks on hand
- High maintenance cost, interest expense on inventory
- No proper record of stocks movement, and stock balance
Inventory management plays a vital part of business operations management in business, especially in trading and manufacturing industry. The issues mentioned above have resulted in SME's declining profitability. What are the solutions available ?
- Slower inventory turnover, compared to industry standard
- Accumulation of stocks due to lower sales
- High % of obsolete stocks on hand
- Declining market value of stocks on hand
- High maintenance cost, interest expense on inventory
- No proper record of stocks movement, and stock balance
Inventory management plays a vital part of business operations management in business, especially in trading and manufacturing industry. The issues mentioned above have resulted in SME's declining profitability. What are the solutions available ?
#1 Introduction of Small and Medium Enterprises Blog
The ultimate objective of this blog is to:
- identify contemporary issues faced by SME
- construct a comprehensive analysis of the issues
- recommend solutions on the SME issues
- sharing other SME- related informations
- answering queries from reader (our email a/c: mysmeblog@gmail.com)
Should you have any queries or anything to share with all the readers. Kindly email us at mysmeblog@gmail.com.
- identify contemporary issues faced by SME
- construct a comprehensive analysis of the issues
- recommend solutions on the SME issues
- sharing other SME- related informations
- answering queries from reader (our email a/c: mysmeblog@gmail.com)
Should you have any queries or anything to share with all the readers. Kindly email us at mysmeblog@gmail.com.
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