Managing a company consists of various parts. Starting from managing transactions, financial statements, inventory management of inventory to managing customers. Being a business owner means you must be able to master at least the basics of it. In order to manage your business well and be able to improve company performance, you don’t need to understand it to the experts. At least when you understand these basic things, managing a company will be easier because every business will definitely deal with it. For example, for those of you who own a manufacturing company.
Having a manufacturing company certainly has more to consider. Starting from finding raw materials, processing ingredients, to selling finished products to the public. Not to mention thinking about equipment and equipment that will help the production performance process so that product quality is better.
One part of manufacturing companies is inventory. Manufacturing companies must ensure that inventory is always updated and always available. This is because manufacturing companies depend on the amount of inventory contained in the warehouse. Inventories must always be maintained so that the production process and manufacturing companies are not obstructed manufacturing.
What is Inventory Stock?
Stock or inventory is goods that are stored by the company to be sold later in the period. This inventory is not only for finished goods, but also for semi-finished goods and raw materials that are used as raw materials.
The stock of ready-made inventory held by the company will be marketed for the next period. As for the stock of goods which are semi-finished goods or mentay materials, stored by the company for later processing in the production process and become finished goods for sale by the company.
Stock of inventory in one company must always be sufficient and update the amount. In order to avoid production process and marketing process bottlenecks for this, a reliable inventory management is needed by the company. Because if it is a mess, it will result in many work processes that are hampered by the company.
How to Control Inventory Stocks
The easiest and simplest way is to group inventory. In the process of grouping these items, the company can group items according to the company’s needs. For example by classifying which items are easily lost which items are not. Then which items are quickly depleted which ones have a longer period of time. This grouping is to facilitate inventory management to manage goods based on company requirements.
· Expensive Stock
Differentiating between expensive and expensive items will also help the company’s inventory management. Goods that have high prices will be more vulnerable to loss, therefore inventory management must be very careful to control inventory. This is so the company is not disadvantaged if there are inventory items with high prices lost.
· In-stock items
Checking the stock of goods sold is also one of the activities that helps the company’s inventory management. Checking the stock of goods or stock taking can be done every day to check how many items are sold and how much stock is left. It also helps inventory management to always update the amount of goods owned by the company.
· Discipline of the Stock Process
The importance to always be disciplined in the process of recording inventory is something that must always be done during inventory management. The discipline in question is always to routinely inspect goods and group items according to their place and label. This is to reduce the condition of random inventory stock. It could be that goods will be easily lost when storage is not organized.
· Restan Goods Stock
Restan items are items or items that are no longer available or no longer displayed. These items must be controlled very well in order to avoid the occurrence of undocumented stock and loss of goods. These items must be grouped by themselves so as not to be mixed with other goods stock and can damage the company’s inventory management.
Managing inventory stock in manufacturing companies is certainly more complicated. This is because manufacturing companies have more stock of goods. For example, raw goods to be made into finished goods, then half-finished goods and finished goods. Each has its own group.
Also read: How Can Stock Out? Here’s How To Manage!
Not only manufacturing companies, other types of companies also need to stock inventory. For example, a trading company. Stock inventory of trading companies must also be thorough, because trading companies have enough products to sell to the market. So every product must be recorded and every transaction must also be recorded to avoid mistakes that are detrimental to the trading company. If something is damaged or lost and the company doesn’t record it, then financial reporting can be messy. Companies can suffer losses due to the number of lost items with unknown causes.
Inventory management is also carried out by companies to avoid losses due to damaged goods. Stock inventory of goods that are damaged and not detected can harm the company as well. Because damaged goods cannot be marketed to the public. This is because the goods have been defect and giving damaged goods to customers is a bad thing. Meanwhile, if the damaged goods are raw goods or semi-finished goods, the production process will be hampered. With damaged raw materials, of course the quality of the product becomes poor and unacceptable to the public.
Error in Stock Inventory
· Rarely Counting Stock Inventory
If inventory stocks are rarely counted, problems that occur in the company can be complicated. For example the inventory of raw materials is running low and inventory management is not aware of this, the production process will be hampered and indirectly the product marketing process will also be hampered, the profits of the company will also be increasingly late.
· Disorganized Inventory Space
One of the things that makes the inventory process complicated is the unorganized inventory space. A messy room will make inventory easily disappear without realizing it.
· Doing the Manual Method
By doing inventory management manually, the chance of human error will be higher than automatically. Human performance may experience errors when making inventory taking and items that are not recorded or lost.
Stock inventory will be very beneficial for every company. Both trading and manufacturing companies. This management will facilitate the company’s performance process and certainly improve the company’s performance. By carrying out this management routinely, the company can run smoothly without obstacles in the production process.