Tips For Better Inventory Management

Inventory Management Tips:

At time of delivery:

• Verify count -- Make sure you are receiving as many cartons as are listed on the delivery receipt.
• Carefully examine each carton for visible damage -- If damage is visible, note it on the deliveryreceipt and have the driver sign your copy.
• After delivery, immediately open all cartons and inspect for merchandise damage.When damage is discovered
• Retain damaged items -- All damaged materials must be held at the point received.
• Call carrier to report damage and request inspection.
• Confirm call in writing--This is not mandatory but it is one way to protect yourself.
• Carrier inspection of damaged items
• Have all damaged items in the receiving area -- Make certain the damaged items have not movedfrom the receiving area prior to inspection by carrier.
• After carrier/inspector prepares damage report, carefully read before signing.

After inspection:

• Keep damaged materials -- Damaged materials should not be used or disposed of without permissionby the carrier.
• Do not return damaged items without written authorization from shipper/supplier.
  
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Developments In Inventory Management

In recent years, two approaches have had a major impact on inventory management:

• Material Requirements Planning (MRP) and
• Just-In-Time (JIT and Kanban).

Their application is primarily within manufacturing but suppliers might find new requirements placed on them and sometimes buyers of manufactured items will experience a difference in delivery. Material requirements planning is basically an information system in which sales are converted directly into loads on the facility by sub-unit and time period. Materials are scheduled more closely, thereby reducing inventories, and delivery times become shorter and more predictable.

Its primary use is with products composed of many components. MRP systems are practical for smaller firms. The computer system is only one part of the total project which is usually long-term, taking one to three years to develop.

Just-in-time inventory management is an approach which works to eliminate inventories rather than optimize them. The inventory of raw materials and work-in-process falls to that needed in a single day. This is accomplished by reducing set-up times and lead times so that small lots may be ordered. Suppliers may have to make several deliveries a day or move close to the user plants to support this plan.

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