Inventory Management Software

Inventory Management - One Size Does Not Fit All

2008-02-09T01:54:00.001-08:00

If there is one great myth in inventory management it is that one single technique will solve all inventory problems. Not that people believe that one technique will solve all problems in all situations but that in any given company one approach is all that is required to manage all inventory.

For the inventory manager this is very attractive as it means that there is only one approach to manage. For the software vendor, consultant or advisor it means only one solution to sell.

There is a wide range of techniques and approaches that people use to manage inventory. These include JIT, MRP, DRP, SCM, Risk Management, safety stock and EOQ?s Sometimes they are used on a stand alone basis and sometimes in conjunction with each other. All are worthwhile techniques when used appropriately.

Problems arise however when the approach to identifying the appropriate solution starts by looking at the solution rather than the inventory. This approach starts from the assumption that because solution x works at company y it must be good. Or because the software suits our enterprise wide planning system it is appropriate. In fact it is often assumed that inventory software packages are much of a muchness. Have you ever heard someone say ?and it has an inventory module?!

The fact is that not all inventory is the same and consequently not all inventory requires the same approach to management. Without trying to be exhaustive it is easy to identify that some inventory is made to order, some is made to stock, some is perishable, some have characteristics that change with time, some are part of assemblies and sub-assemblies and some are stand alone items. These, and many other variables, lead to a huge number of different requirements for inventory management.

While the differences between inventories in different industries are well documented (for example, the requirements for managing inventory at a large retailer will be different to managing in-process inventory at a petro-chemical plant) what is not widely recognised is that the requirements for inventory management across a single business can vary significantly.

The single biggest error made in inventory management today is to select an inventory management technique and apply it universally across a business. The ?one size fits all? approach can lead to significant inefficiencies in the results of inventory management. This might not be an ?out of stock? as that situation is always dealt with urgently. More likely the result will be the holding of excess inventory and tying up valuable funds unnecessarily.

A better approach to inventory management is to start by looking at the inventory rather than the solution and identifying the characteristics of each type of inventory being held. When this is done, an approach that is appropriate to the demand, supply and cost characteristics of the inventory can be selected and the inventory holding optimized for its characteristics.

Consider a manufacturer that has a total inventory made up from raw materials, work in progress, finished goods, a distribution network and engineering spares. Applying a universal mindset or solution across all of these inventory types is unlikely to deliver an optimal result. For example, dealings involving suppliers (as for raw materials and engineering spares) provide a different range of opportunities compared to internal supply situations (WIP) and even finished goods. The ability to forecast, the ability to control the supply chain, the ability to source on consignment, the requirements for buffer stock, the impact of a stock out all vary. Unless you allow the flexibility to pursue opportunities related to different inventory types your business is likely to be over investing in inventory.

Inventory management is about more than just logistics and getting the right thing in the right place at the right time. It is also about the efficient and effective use of capital. Taking a singular approach to managing all types of inventory without fully considering the different characteristics and opportunities of that inventory leads to overstocking and obsolescence and the waste of capital resources that might be better directed elsewhere.

Phillip Slater is the author of the book Smart Inventory Solutions and the developer of the Inventory Cash ReleaseTM System - ICR?06, a world?s best practice approach to inventory management and reduction.

For more information visit his website at http://www.InitiateAction.com

Better Practice Inventory Management

2008-02-09T01:53:00.001-08:00

People are always searching for ?best practice?, somehow believing that there is a silver bullet solution that will cure their inventory problems. The problem, of course, is that what is best practice in one country/industry/business might not be best practice in another. In any case, the exalted ?best? practice might just be too much of a jump for many people to take or indeed may not be economically viable.

Interestingly, though, in my work, the question that I am most often asked is, ?what do I do with all of this excess inventory?? My answer, of course, depends upon the nature of that inventory, what it is, how old it is etc. But obviously the best thing to do is create less of the inventory in the first place!

Some might think that this requires best practice and is therefore difficult to achieve but I would argue that this really is more achievable than people think. Putting in place the right processes, polices, measures and reporting in order to limit inventory purchases to those items that are most likely to be used/sold and in the right quantity, is as important or perhaps a more important task than clearing out the old stock. This can be achieved by understanding what works well for others rather than what is best practice. I think of this as better practice.

With that in mind I recently had the opportunity to interview more than 30 people, across a dozen companies, in all Australian states and New Zealand, who were all associated with inventory creation in one way or another. There were General Managers who make the occasional big decisions that create inventory. There were inventory managers who take the day-to-day actions. There were purchasing people who order the stuff and sales people who provide forecasts. Each of these people has a role to play in the creation of inventory but interestingly only the inventory managers acknowledged that role explicitly. The result of those interviews does not constitute best practice but I think that they give some insight into better practices.

These interviews were conducted on behalf of a client so I am unable to give you all of the detail or the quantitative results. But I do have permission to tell you what we deduced in a qualitative fashion.

During the interviews we identified the following similar practices that were consistent between the companies that performed well.

Inventory decisions (range and quantity) were made at a local level. The locals were considered best placed to understand local conditions and requirements and therefore better able to get the inventory mix right. They had a better handle on forecasting because they were closer to the customer or demand. Centralized systems often missed the subtle changes or inside knowledge that helped stop the ordering of items (for example) when usage had changed but had not yet been flagged in the system.
Requisition systems were used to order items through centralized purchasing. This approach creates efficiencies in procurement and provides greater control over terms of business and logistics. The purchasing people were concerned with all the purchasing issues not just the availability.
Inventory items and codes were created centrally. This was used as a means of controlling the SKU count. Companies that did not do this experienced the ?death by a thousand cuts? associated with managing a long tail of low value SKUs
The better companies had moved to central ordering after trying local ordering. They found that this change had a positive impact on their inventory investment. The point is that they tried it one way and made a change and that this experience was consistent.
Inventory management systems and practices were standardized. Each location or department followed exactly the same process. They used the same rules for determining what they should and shouldn?t buy and had the same authorities, responsibilities and accountabilities at similar levels. Kind of like McDonald?s only not involving hamburgers! This didn?t remove individual decision making or initiative it just meant that the rules were consistent.
Most of the better companies had an inventory process ?champion? to work on continuos improvement and maintaining standardization. This person did not manage the inventory or ?own? it any way. This person ?owned? the process. I liken this to having a Quality Manager; they don?t own the production just the process used to control quality. This was not necessarily a full time role
Inventory was reported at a local level using local balance sheets. Local reporting and highlighting of inventory was seen as an important way to create visibility and therefore ownership.
The better companies were quite aggressive in inventory management, setting and achieving aggressive targets rather than ?achievable? targets. The better companies did not just want to manage availability they saw managing the cash investment as equally important and therefore set targets aimed at minimizing the cash investment without jeopardizing availability.
Internal interest charges were included in departmental P&L reports as a means of providing immediate feedback on the impact of additional inventory (these items were reversed before any corporate reporting). This helped make the cash investment important at the senior levels that had to report on their P&L Statement on a monthly basis. Companies that didn?t do this found that reporting a good profit was used to justify an over investment in inventory (that is an investment that did not really contribute to the profit). This approach forced them to mange both cash and profits.
Slow stock was identified at a higher stock turn level in the aggressive companies than it was in the others. This was seen as a way of highlighting the approaching ?cliff? of obsolescence and was used as a way to force action before accounting rules required items to commenced being written down.
Virtual warehousing was used to separate stock purchased for different purposes. This is where a different warehouse code might be used although the material was in the same warehouse as other stock. This was particularly useful when stock was bought in especially for one off projects or events such as capital works or shutdowns. This approach enabled a heightened level of visibility of who had bought what and prevented mistakes being hidden in the general inventory.

Obviously the sample for this survey was small so the results are open to interpretation. However, the actions listed are not so radical that they cannot be implemented by almost everyone that is seeking ways to improve their inventory management. The 11 actions listed above were consistent across a number of the companies that were ?doing well? and were noticeably absent in the others.

So, assuming that you want to improve your inventory results the only thing stopping you from adopting some or all of these actions is the fear of either change or loss of control. Of course you could just keep looking for ?best practice? but now that can only be seen as an excuse to do nothing!

For more information visit his website at http://www.InitiateAction.com

Why Your Current Approach To Inventory Management Is Not Good Practice And Is Costing You Money

2008-02-09T01:52:00.000-08:00

Businesses around the world spend millions of dollars on software and inventory management systems in an effort to maximise their return on investment (ROI) from inventory. Until now even the most sophisticated of these systems left businesses way short of best practice. In fact most of these systems institutionalise excess inventory.

The problem is that most software relies on optimisation and this limits the opportunity to reduce inventory because it ignores external influences. Software can only optimise the values it has, not what could be.

World's best practice inventory management demands that the ?management system? is optimised not just the inventory. Most inventory software takes today?s data and runs an algorithm to optimise holdings. What they miss are the changes in the management system that could further reduce the total level of investment. This flaw makes software systems self-limiting in their results.

Inventory management is much more than just the software system. Inventory management is the combination of know-how, process, measures and reporting that together provide the opportunity for maximizing availability while minimizing cash investment.

The five reasons why your inventory management is not best practice and is costing you money are:

1. The Responsibilities Are Misaligned

The people that make the day-to-day decisions will typically not be responsible for the working capital outcomes; they will be responsible for availability. The problem is that if you run out of stock all hell breaks loose but if you overstock there is no repercussion. This is especially the case with indirect inventory that is not subject to the usual planning scrutiny. Given this, what do you think most people do? That?s right, they over stock!

2. The Optimization Is Incomplete

Sophisticated software can track all sorts of data and in many cases the software can make optimization decisions based on that data. This can reduce your inventory but it is self-limiting. The problem is that software optimizes only on known data and ignores process and behavioural changes that can impact that data. This is software optimization not system optimization. The software should only be a tool within a bigger process of optimization.

3. It Is Managed Reactively

Inventory is often seen as ?set and forget?, that is, once the item is optimized for the current situation the requirements are not systematically revisited. It is often only when there is a ?cash crunch? or some other emergency that action is taken. Yet, even indirect inventory can represent millions of dollars of investment and deserves frequent attention. When action is taken it usually addresses the highly visible items rather than the real ?cash burners?.

4. There Is A Significant Time Lapse Before Problems Emerge

The number one question asked about inventory is ?what do I do with slow moving or obsolete stock?? Depending upon the accounting policies in your company this stock has taken 3?5 years to reach the point where that question is asked. By this time it often seems irrelevant to revisit the original decision or processes that produced this result. No one would accept this approach to quality management! No one ever asks ?how do I prevent the accumulation of slow moving or obsolete stock??

5. It Is Painful To Fix And Easy To Ignore

In most cases the removal of obsolete inventory will result in a ?hit? to the profit and loss account. However, if a reason can be found to justify it for another year then few will argue. Eventually someone is going to have to make a decision and it will be painful. For this reason, obsolete inventory decisions are often driven by the opportunism of results reporting rather than good management principles.

To truly achieve best practice your organisation must review these issues and develop systems that will minimize their impact or eliminate them altogether.

Phillip Slater is the author of the book Smart Inventory Solutions and the developer of the Inventory Cash ReleaseTM System - ICRTM06, a world?s best practice approach to inventory management and reduction.

For more information visit his website at http://www.InitiateAction.com

World's Best Practice Inventory Management

2008-02-08T00:11:00.000-08:00

In almost every endeavour it is difficult to determine what constitutes ?best practice?. Businesses around the world spend millions of dollars on software and advisory services and often don?t know whether they are ?best practice? or just somewhere in the pack.

Many companies will say, ?why does it matter just as long as you keep getting better?? The stark reality is that inventory requires the investment of cash. The items need to be purchased and stored and this ties up cash. This working capital can be a significant burden for many companies and if freed up can provide significant cash resources that can be used for other more productive purposes.

For many companies the key issue is availability and so long as they have an item when it is required they care little about the cash investment. However, this approach will not maximise your ROI and, in almost all cases, cannot be financially justified on any level. This is because the excess inventory investment that this approach generates provides little or no value to your business. The excess is invested in inventory that does not move or becomes obsolete.

World?s best practice inventory management demands that the ?management system? is optimised not just the inventory. It is in this field that best practice can be both easily identified and readily achieved.

Each level on the ladder to world?s best practice provides a greater degree of control and management but is only at Level 5 ? System Optimization that the management system is optimised. By reaching this level companies can reduce their inventory investment, freeing up cash, AND achieve their desired availability levels.

The five levels to world?s best practice inventory management are:

Level 1 ? Ad Hoc: Purchases are made on an ?as needed? basis. At this level there is little control necessary as inventory is expensed when purchased and used immediately. While this may seem to reduce the cash investment it may not reduce the total cash expenditure. This approach can only be viable if the items are available ?instantly? and the cost of a ?stock out? is negligible.

Level 2 ? Storage: Inventory is expensed when purchased and stored for use but not strictly controlled. Similar to above except that items are stored because of the cost of a stock out. This approach appears to solve one problem but it raises two others. Firstly, total expenditure is likely to increase as items are purchased in ?economic quantities?. (See my free e-book ?5 Myths of Inventory Reduction?) Secondly, without controls there is little opportunity for review and development.

Level 3 ? Capitalisation: Inventory is capitalised and subject to some level of control, either manual or software based. This approach is by far the most popular as it appears to provide the required mix of availability and control. Unfortunately, most organizations use their software solely for counting and accounting. There is a strong reliance on human calculation of inventory requirements but often little review of outcomes. The result is likely to be good availability but a significant over investment in inventory and high levels of obsolescence.

Level 4 ? Software Optimisation: Inventory is capitalised and stock levels are optimised based on a risk/return algorithm. This is the basis of most software solutions. Most software packages will incorporate the ability to automatically adjust the required stock levels based on the history of demand and supply. Very few companies actually use this feature because they know that they cannot trust the results. This is not due to a software flaw but because the supply and demand may not represent typical usage. (This is explained further in the book Smart Inventory Solutions.)

Level 5 - System Optimisation: Inventory management minimises the overall cash investment without an increase in risk. This is world?s best practice. At this level, all of the factors that influence the actual inventory investment are reviewed on a regular basis. This review is manageable because it is limited to the ?vital few? items that have a real impact on the level of investment. Inventory levels are adjusted to take account of changing needs and this minimizes the likelihood of obsolete inventory.

Any company that already has the software required for Level 3 can achieve Level 5 ? world?s best practice. What is needed is the know how, policy development, measures and reporting required to take a company to Level 5, not more software. Once these key issues are addressed you are implementing a true management system. Software only goes to level 4, it is the management system that provides the bridge to Level 5.

For more information visit http://www.InitiateAction.com

For more information visit his website at http://www.InitiateAction.com.

Inventory Management - Good Practices And Benefits

2008-02-06T22:59:00.000-08:00

In every kind of business, inventory management or management of the inventory consists of a series of processes on the multiple functions with reference to the tracking, handling and managing of goods and materials that are held in stock.

Efficiency in effective inventory management will always give a competitive edge to the business, regardless of its nature. With effective control and management over inventory stock, as well as accurate visibility and fast efficient fulfillments, comparative pricing can be given on a customer-to-customer basis.

In addition to cutting down on operating costs, it will also bring satisfied customers back for more businesses in the near future. However, modern day management of the inventory is usually not as simple as the contemporary practices of just keeping abreast with inventory standards and expenditures.

Most businesses, especially those in the process and manufacturing industries, will require varied sets of both simplified as well as complex integrated inventory management controls. Such regulations are streamlined for effectiveness in compliance and distribution as well as making provision for further improvement on software and other protocols.

Primarily, the first and most important step to commence in inventory management is to acquire accurate data in terms of facts and figures. Next, a set of rules and regulations is set up to protect and guard the information efficiently. Such information may become a crux factor in the improvement of inbound operations, strategies and productivity.

In addition to the physical monitoring of materials being moved into and out of the stockrooms and drawing up reconciliations of the inventory balances, other tasks involved in inventory management may include tracking and reporting of replenishment techniques, analysis on the actual and projected inventory status as well as setting periodic targets and re-engineering the execution framework.

Although having proper management of the inventory may create a great difference in attaining and retaining a competitive edge in the sales markets for certain products of any businesses, it remains an integral and essential effort of a company to reduce its inventory management costs.

As a result, several computer software companies have since developed a standardized set of comprehensive inventory management systems to help businesses control and manage their inventory stock.

Aside from certain specialty features, the requisite module should be able to integrate into the pre-existing software system of the business. In addition to providing a quick and easy access to detailed inventory and ordering information, the new inventory management software should also give accurate and timely data.

Although the inventory management system is a beneficial tool, there are some basic and extremely significant points to ensure an effective and proper flow.

These will include good practices like making accurate entries on every stock receipts into the computer, setting up a replenishment strategy on all items in the stock houses and drawing up specific guidelines on the control of excess inventory as well as on-going dead stock. Such effective inventory management habits will give any kind of businesses a superior competitive advantage over their competitors, especially with an easy-to-use stock analysis tool that delivers quick and accurate information.

Ske Chay of www.trade-opportunities.com Providing some comprehensive information on inventory management at www.inventoryanalytics.com

Inventory Management

2008-02-05T23:13:00.001-08:00

Inventory Management when implemented correctly, saves your company time and money! Keep track of your company's products and materials and know not only exactly what you have, but exactly where it is, how old it is, how much you paid for it, where it came from, where it is going and more.

Inventory Management is an ongoing process of keeping track of everything needed to run your operation and keep it running. Proper Inventory Management will keep your business flowing from the time an order is placed right down to the point your product gets into your customer's hands. Track your materials, your products during manufacturing, your ready to ship products, and your products in transit and on store shelves.

With today's technology this can be accomplished right from your desk! No need to go out and count everything anymore! Today we have bar code scanners to read labels on boxes of supplies and finished products. We have RFID Tags to track our products, shipments, supplies, orders in transit and more. This new technology allows us to even know where the final product ends up right down to the street and house number where the final user resides!

RFID is playing a bigger and bigger part in today's Inventory Management. From drug stores, retail outlets, libraries, and even credit cards to name a few, this RFID technology will soon be used to track people with their diver's licenses! RFID Tags are found in almost every product already and more products every day are using RFID Tags and RFID Readers. These RFID Readers are hooked up to Inventory Management Software that allows the user to track it during every step of the manufacturing process and depending on the method of delivery, tracks it to the end user.

Today's Supply Chain Inventory Management Software is just incredible with everything it can do! What i huge time saver and asset for businesses. Microsoft is even getting in on it with their Great Plains Inventory Management Division. They strive to give companies the best possible Inventory Control along with real time Inventory Information. This helps to reduce the cost of doing business and saves companies time and money. The Inventory Management Software in use today does several important things. It prepares invoices, keeps an up to date database of your clients, automatically reorders stock (if desired), maintains the balances of your inventory and many more crucial time saving functions.Inventory Management Today, Engineering Today, as well as Warehouse Spot where he provides detailed and informative articles, tips, and advice on Inventory Management along with other great Manufacturing and Storage Information.

Inventory Management Software

2008-02-05T00:47:00.001-08:00

Effective management of finished product inventory is quite essential for running a business efficiently and profitably. Inventory strategies and decisions become particularly important in businesses where inventory costs form a sizeable part of total marketing costs.

Carrying inventories becomes inescapable in most businesses, because the producing activities and consuming activities take place at different times, in different locations and at different rates. Inventories are made up of several elements: operational stocks kept for meeting the ready demand at different consumption centers. Some stock will be in transit at any given point of time, while other stock will be awaiting shipments. Finally, there are kept for meeting emergencies. All these make up the total inventory.

While discussing inventory management software, it is important to keep an eye on the elements of inventory costs. A variety of costs are incurred in carrying the inventories. They include interest on capital tied up in the inventory, warehouse rent, staff salaries, insurance, rates and taxes, stationery, postage and communication charges, administrative overheads, costs of handling, unloading and stacking, loss due to damage and deterioration while on storage and cost of order processing.

In businesses where the turnaround of inventories is rather slow, interest on the capital tied up in the inventory becomes the most significant element of the total inventory carrying costs. In fact, inventory cost causes the most worry to manufacturers today. Increased competition has resulted in the accumulation of stock in a number of industries. Inventory carrying costs are on the increase not merely because of increased level of inventories. Every increase in the price of the products pushes up the inventory carrying costs as the value of the locked up product goes up in the process. Similarly, every increase in the interest rates also pushes up the inventory carrying costs.

Home Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Home Inventory Software is affiliated with Fleet Maintenance Software Reviews.

The Bargain Hunter's Key To Incorporate A Business

2008-02-04T00:42:00.000-08:00

If you are a small business owner, you may have considered at one time or another whether to incorporate your business or not. Sure, you are tempted by the tax advantages and risk protection that incorporating a company brings, but the costs of a traditional incorporation with an attorney can be prohibitive.

Well, times have changed, small business owner! It is time you reconsider incorporating your business because the Internet has made the whole incorporation process a lot simpler and a lot cheaper.

Incorporate a Business ... or Not?

One of the most important decisions that you will have to make as a business owner is how your company should be structured. This decision will have long-term implications so you'll want to be sure that you are well-informed when you select the type of ownership that is right for you. When making the choice, you will want to consider the following:

* Your vision of the size and nature of your business.
* The level of control you want.
* The level of structure you are comfortable with.
* The business' vulnerability to lawsuits.
* Tax implications of the various ownership structures.
* Expected profit (or loss) of the business.
* The level of investment and reinvestment of earnings into the business.
* Access to income out of the business for yourself.

Did you know - According to a 1997 report of the U.S. Census Bureau, 17 million small, non-farm businesses in the US comprised 99.7 per cent of all employers, employing 52 percent of the private workforce and approximately 51 percent of sales. Small business-oriented industries provided 11.1 million new jobs between 1994 and 1998, which was virtually all of the new jobs created during that time. As history has dictated in the past, small businesses continue to be the most likely source for generating jobs and opportunity, nearly 67 percent of first jobs and 55 percent of innovations.

Just a Click Away

You may find much of what you need to incorporate a business with just a few clicks of your mouse. For instance, many online sites now offer sample articles of incorporation forms or templates for a nominal fee. Simply go to your favorite search engine and search for ?incorporation template,? ?incorporation form,? or ?sample articles of incorporation.? You?ll find a number of choices with prices ranging from free for sample ?articles of incorporation? to $50 for a customizeable template. Although the price may be right, be advised that this satisfies just one part of the process when you incorporate a business. To be sure, it does not address filing fees (how much and where to file), franchise fees, whether you need a business license, how your state treats foreign corporations, etc.

Alternatively, once you decide in what state to incorporate a business, all you need to do is visit the Secretary of State section of that state?s government website. Most of these websites have sections called Corporate Bureau, Corporation Commission, Bureau of Corporations, or something similar. There you will find the forms you need for incorporating a business along with complete instructions on what is needed to incorporate a business in their state. And many states now offer online incorporation! What?s easier than that?

To incorporate a business can be an overwhelming decision for many business owners, but it is often the wise one. Not only does incorporating a business provide risk protection to its owners, it also provides many tax advantages that other business structures simply do not. Nevertheless, whether to incorporate a business or not must be an informed decision so make sure you do some research on the process. You'll find much of what you need on the Internet. And, nowadays you have many more options than the traditional one using an attorney. What type of incorporation (C-corp, S-corp, LLC)? Will you use an incorporating service or do-it-yourself? Answers to these questions and more will help you choose the option that best suits your business and whether incorporating a business is right for you.
Nate Smith is one of today's premier experts in saving you time and money on common legal matters. Forget the huge attorney fees, Nate will show you how you can incorporate, create a will and more while saving your hard-earned dollars in the process (http://legaldocumentsweb.com).

Aggregate Inventory Management

2008-02-01T23:22:00.000-08:00

This article is also available on our website: PROACTION Generating Best Practices. I

Overview

In spite of the great advances in industrial management in areas such as JIT, Flow Manufacturing, Lean Manufacturing, MRP/MRPII, ERP and Supply Chain Management, and now, Electronic Commerce, inventory investment management continues to be a major issue for many organizations. Installing the latest software and mouthing the most popular buzzwords is no guarantee of good inventory management. As with almost all Best Practices, it is the effective use of available tools by properly educated and trained people that creates the desired result.

This paper covers how to set up and maintain Aggregate Inventory Management for improved investment and operations management. It is a macro, top-down approach that complements a companys micro SKU (part number) level management techniques.

Definition, Goal and Objective

Definition-- the APICS Dictionary defines Aggregate Inventory Management as Establishing the overall levels of inventory desired and implementing controls to ensure that individual replenishment decisions achieve this goal.

It includes:

How to assess overall investment levels and set targets.
How to identify inventory investment level drivers and help control them
How to link aggregate inventory management macro strategy to micro controls and develop accountability
Performance measurements
Specific techniques, such as ABC analysis, control parameters, inventory buildup charts, and input-output control.

Goal-- Helps manage assets and make money.

Objective-- Optimize inventory levels within the parameters of service, cost, logistics, process and investment objectives/constraints. Inventory management should be exercised to keep the lowest level of inventory consistent with achieving the objectives. Too much inventory reduces Return on Investment and Return on Assets (lower profits). It also tends to increase expenses, in the form of interest payments, handling and storage, management, damage, loss, obsolescence, tracking, taxes, insurance, etc.

Although most managers, accountants and taxing authorities regard inventory as an asset, treating it as such for operational purposes may create liabilities. You have probably heard stories about factories working to keep people busy or maximize efficiency and other similar nonsense. If they are making inventory that is not needed now, they are often wasting money. If they work just to keep people busy, they are still consuming material, energy and other resources that may not earn adequate profits. They may use resources that could better be used for more immediate and profitable needs. If inventory is deployed improperly, it may create liabilities. A customer of one of our clients had branch managers who would hoard products at their remote branches so that they wouldnt run out. This created an excess of material in the wrong places.

How to Assess Inventory Investment Requirements

Survey

First, understand market, customer needs and service expectations; your own company needs, expectations, process, abilities; supplier abilities and mindset; industry norms and mindset; world-class best practices.

From this, you should learn how fast and reliably customers expect to get their shipments, what is involved to get raw materials and production completed, what the best in the industry are doing and plan to do, and what might be possible. For instance, if all competitors are shipping from stock, then you will either need to duplicate that feat, or determine how to manufacture very fast, or convince customers that your product is so great or so cheap that it is in their interest to wait while you make it to order. Or, you might figure out how to procure better or manufacture better in a way that allows you to carry less inventory.

The result of this step is to establish what industry inventory standards might be and what is possible. Make sure you have an apples-to-apples comparison: there may be significant differences among companies. For example: One company might stock finished goods, another one may sell it to another division or to a distributor.

Measure Current and Historical Inventory Levels and Performance

Measure current and historical company inventory levels and performance, not just overall statistics, but broken down into levels of responsibility, commodity, area, type (raw material, work-in-process, finished goods, consignment) and market. Do this to help isolate figures down to levels of accountability and to show inventory investment performance by market, process or even product line. You may find that your systems are unable to do that, meaning that it is past time to make changes to them, whether that be to replace them, modify them or put in separate inventory tracking and control systems (recommended as a last resort).

The result of this step is to establish how your own company is doing and has been doing with inventory management.

Establish Performance Metrics

Establish performance metrics - Inventory is usually measured in currency value, such as U.S. Dollars ($USD). Another, complementary way is to measure it in velocity. For example, you might measure it in turns which relates to how many times it moves or turns over per year. For example, if there was an average of $100 in inventory in the last year and annual cost of sales for the last year was $2000, that would be calculated as cost of sales ($2000)/average inventory ($100)= 20 turns.

More turns (or turnover) is usually good, provided that cost, service or quality arent unacceptably affected. If they are, the answer is not simply to increase inventory, but to try to improve the underlying drivers influencing it instead, if possible and cost-effective. There are variations of the turnover (this term should not be confused with the European turnover, which usually refers to total sales for a period) formula, mainly in addressing how to calculate average cost of goods sold or inventory.

Sometimes, turns are calculated by comparing full sales value with average inventory cost or even equivalent sales value. To maintain easily comparable figures, state all numbers in fully burdened costs, using industry standard overhead/burden calculations, unless this is contrary to the standards of your industry or locality. Hopefully, future standard world accounting practices may help to reduce confusion in this area.

It is becoming more common to measure inventory performance in days coverage instead of turnover. People seem to relate to it better.

Inventory and sales may also be commonly measured in more industry-friendly terms, such as tons (steel), bushels (corn), housing units (construction or real estate) or ounces (gold).

A further refinement is to stratify the inventory by Quality, as asserted by Gary Gossard of IQR International. The idea of classifying inventory as active, slow-moving or obsolete has been around for a long time. Constantly track it, to highlight any change in inventory quality or condition, such as a new requisition for an item which is already in excess or obsolete. The active, weighted good inventory not exceeding your days coverage target, divided by the total inventory, multiplied by 100, it equals the Inventory Quality Ratio (IQR) number. 33-40% is typical for mediocre companies. 66% is considered pretty good.

All of these numbers can be time-phased, to show changes over time, due, for example, to seasonal supply and demand changes, or planned improvements. These can then be applied in still more detail to the appropriate organizations, product lines, trade channels, warehouses, planning groups or other responsible entities and then monitored for results.

The numbers should be capable of being drilled down or up, from the entire enterprise level to an individual SKU (Stock-Keeping Unit) transaction or part number. Managers or employees should be able to look at total figures for their areas of responsibility and readily identify specific problem areas down to lower levels and finally to specific items, policies, orders and decisions that accounted for them.

Here are typical Inventory System Metrics, which should be broken down by organization/responsibility, area, type, commodity, market/product, and time phased, with targets and actual values:

Inventory Turnover or Days Coverage
Inventory value or other unit of measure, such as tons
Inventory Quality, including IQR and summaries of amounts of each type
Customer service level, expressed how the CUSTOMER perceives it

ABC Analysis

Perform an ABC analysis, a simple, common and powerful tool for inventory management. It is based on Paretos law of 80-20. The most common approach is to calculate demand in units, preferably for future periods, then calculate the total usage value at cost for each item (total cost of sales multiplied by units required) for a given future period. If future demand data are not available, the next best thing is to use history, but this wont work well for items with major swings in demand over time. Sequence these in descending value. Typically, the top 10 to 15% of items account for 75-85% of value (A items), the next 20-30% account for 10-20% of value (B items) and everything else accounts for the rest, about 60-70% of the items, usually about 5% of the total value (C items). Your inventory should be less than these percentages for the A items, because they are much more tightly controlled and a little higher for Bs and significantly higher for Cs.

Then compare the list to actual values in inventory, plus actual and planned commitments. The answers will often suggest immediate corrective actions!

An ABC list suggests what to concentrate on to control most of the inventory investment. What it doesnt tell you is that being short of a $.10 screw might prevent the shipment of a $5,000,000 radar unit, so ensure that there are control systems for all items, just control the expensive ones much more carefully. Err on the side of caution for the cheaper items, allowing a safety stock coverage or two bin approach to avoid stock outs, but keep inventory from getting out of control.

Create an Inventory Buildup Chart

Another good analysis tool is the inventory buildup chart. Use a standard x-y coordinate chart. Plot the cost build-up over time, by product group, with cost on the y (vertical axis) and time on the x (horizontal) axis. Normally, raw material cost accumulates first over time, followed by labor and overhead application. Allow for safety stocks, lot size inventory, transit stock, defects/rework/scrap, and normal finished goods and distribution pipeline stocking. Show the affect of consignment arrangements. Some people also treat accounts receivable as sort of a de facto inventory, until it is paid for. Once this chart is completed, show it around for shock value. Presented correctly, it will really make people think about the effect of constraints and decisions (just another form of constraint) on inventory. Then, work on changing the rules!

One company had a 14 month buildup curve, which was reduced to 4 months. At another company, the longest lead time material item accounted for only 20% of the product cost, so stocking only that item, instead of finished goods or instead of only reacting to orders, enabled them to radically reduce the response time for orders by 70%. It also added the flexibility of being able to use that raw material to make a number of different end items.

How to Identify and Control Inventory Drivers

Inventory drivers are things that tend to make inventory go up or down. Identify them and you will have some clue of why inventory changes. Understanding them is the beginning of gaining control. Ive stated things that would drive inventory up, e.g.: more SKUs. I refrain from stating the obvious: doing the opposite would reduce inventory. e.g.: reduce SKUs to reduce inventory.

Key Drivers are covered briefly, as follows:

Number of SKUs

The more items you have, the more inventory you will need, in most cases. If you sell 500 widgets a year of A, then replace it with 250/year of A and 250 of B, you will probably need to carry more inventory. Why: demand and supply variability and total economic order quantities are likelier to be higher for 2 items than for one.

The more SKUs in a product, the harder it is to bring matched sets of parts together at the same time. Because there are multiple items, with multiple vendors, kept and routed through multiple places or paths, with more opportunity for delays, defects, etc, more inventory will be needed.

The more operations there are and the longer that they take, the more inventory you will tend to have. More operations mean a longer supply chain. It may also mean differing lot sizes per operation and more places for delays and defects to occur. Process simplification helps reduce inventory.

The more facilities that inventory passes in and out of, the further apart those are and the harder they are to reach and pass material in and out of, the more inventory you will tend to have.

The more times inventory passes from the control of one system or organization to another and the less efficient the transfer is, the more inventory you will tend to have.

Lot/Batch Sizes

Lot/batch sizes greater than customer order delivery sizes tend to increase inventory. If customers order a product one at a time, but economics, handling or process considerations suggest that you make 1000 at a time, then you will have more inventory available than will be consumed per order, resulting in an accumulation of inventory. If you need to order things in cases, dozens, carloads, tons or weeks supply, but they are needed downstream in the supply chain in smaller increments, you will tend to accumulate more inventory.

The longer the lead time, the more inventory you tend to have. If something takes 16 weeks to get instead of 16 days, there is more inventory needed in process to cover the pipeline time. Whether it belongs to you or your vendor, it is increasing somebodys cost, which ultimately will affect your cost and your customers cost. Longer lead time also means more chance of running out or having something go wrong out while waiting for it, which is usually dealt with by having additional inventory.

Carrying cost

This refers to the cost of owning inventory. Lets look at what goes into inventory cost of ownership, frequently called the carrying cost and expressed in terms of percent cost of inventory valuation per year of ownership. For example, a 25% carrying cost (typical) would indicate that it costs about $.25 to own each $1.00 of inventory each year. These costs consist of:

Cost of money The cost of capital to the company or, in some cases the opportunity cost or return that might be earned on the money by applying it productively elsewhere. The cost of money has ranged anywhere from 6% to 18% in the USA in the last 25 years. Obviously, this has a very significant impact on investment strategy.
Obsolescence The risk of inventory never being used, or needing rework to make it usable, needs to be factored into the cost of owning INVENTORY. In theory (and practice), the larger the inventory is, and the longer it is held, the more likely engineering changes, customer preferences and technological changes will render that inventory unusable. In the clothing industry, it is not uncommon to see inventories depreciate as much as 90% when styles change. Certain portions of the electronics industry have problems with inventory becoming obsolete very quickly, due to technological changes.
Shrinkage A portion of inventory becomes unavailable to the owner due to loss, damage, theft or spoilage. The longer inventory is there and the more there is, the more likely this is to happen. Steps to prevent it only raise carrying costs in other areas, such as security, climate control, better control systems, recruiting policies, etc.
Quality Factors Allowances for yield, attrition, scrap and rework. This is really more of a function of the process than the amount of inventory invested and is more related to throughput, but is sometimes included as part of the aggregate inventory carrying cost.
Technological or Price Obsolescence Prices dont always go up. In fact, in industries such as electronics, prices often plummet due to constantly improving designs, product and process technology improvements. Therefore, it is desirable to minimize inventories in high-risk areas.
Taxes There are two dimensions to this: 1) in some areas, a tax is levied on inventories, so the more inventory, the more tax is paid. 2) inventory is regarded as an asset by most accounting and tax rules. Therefore, increasing inventories shows profits and profits are usually taxed, usually by multiple government entities.
Insurance The cost of carrying insurance on inventory needs to be considered, as well as insuring the space, equipment, people and other resources needed to control it.
Space Costly storage space sometimes occupies 25-30% of the total facility, when one considers raw material warehouses, stockrooms, work-in-process storage, receiving, shipping, outside warehouses, MRB and residual storage areas. Inventory reduction campaigns can help companies avoid the need to move to large facilities, or permit them to shut down or cut back existing facilities.
Manpower All of this inventory needs people to order, receive inspect, record, move, count, store, retrieve, post it to the ledger, etc. People are the largest or second largest expense (behind material) for most manufacturers.
Record Keeping Systems Software, procedures, equipment and paper must be used to track and control inventory.
Material Handling/Storage Equipment Conveyors, fork lifts, bar code readers, scales, automated storage and retrieval systems, trucks, carts, bins, racks, shelves must all be purchased, leased, maintained and cared for.
Physical Inventories, Reconciliations Must be conducted to ensure that inventories are properly accounted for and maintained.
Transportation Must be provided to move inventory in and out of the facility, to vendors, within the facility, to different workstations and storage areas.
Energy Heat, light, humidity control, air conditioning, refrigeration and fuel must be consumed to make all this happen.
Inappropriate Lot Sizing - In inventory formulae, the carrying cost of inventory is often expressed as a flat percentage of the inventory value, for convenience of computations, but that is an oversimplification of reality. For instance, consider material handling/storage costs. Just because a dollar of inventory is added, doesnt mean that carrying costs go up, say, $.02. In reality the costs would not usually go up in a direct proportion at all, but only when we had to pay for an additional expense, or make the next capital investment in equipment or space to accommodate the inventory. So actually, most of these costs are step functions, rather than continuous curves.
We urge caution in the use of so-called EOQ (Economic Order Quantity) formulae in planning. While these can be useful guidelines in some cases, they can easily go awry and are hypersensitive to changes in carrying costs and order costs, which are usually no more than guesstimates, at best. We smile in amusement at PhDs made or lost on the study of such arcane calculations, often failing to consider basic realities such as; how much space and money do we have, anyway You can refer to Pauls book, Production & Inventory Management in the Technological Age, pages 137 to 139 for a detailed explanation of why this lot sizing method is weak and should be used with caution.

Supply variation-- refers to the reliability of the supplier to deliver the desired units in the needed quantity, at the right time, at an acceptable quality level. If this cant be done reliably, then companies tend to carry a buffer (safety) stock to make up for the deficiencies in the supply system.

Demand variation - refers to the ability to reliably forecast what the customer will require (whether that is an internal or an external customer). Lower reliability tends to encourage buffer (safety) stocks.

Defects Extra inventory is often carried to allow for probable rejections. This is just a specialized form of safety stock for supply and demand buffering.

Logistics constraints/transportation costs - This also sometimes falls under the heading of supply and demand variation and it certainly can affect it. For example, one of our clients transports parts by ocean freight to a plant in Portugal, or at least they do that if they dont have to ship by air to get them there faster. Because ships traveling between economical ports only leave every few weeks, a 20 or 40 foot long container is the most practical shipping size. A certain amount of time is required for packing, transportation to the terminal, Loading, transport, unloading, customs and transport to the consignee. These are very real logistics constraints that must be built into the pipeline portion of the inventory model.

Another company studied ships fresh flowers from Latin America to the U.S. Air freight is the only feasible way to handle shipment, due to shelf life and care issues. It results in a shorter pipeline and higher transportation costs, which end up either directly costed to inventory, or get rolled into overhead, or cost of salessame ultimate effect.

As unit costs rise, so will inventory, but the turns, or days coverage, will remain the same.

How to set Inventory Targets

After considering the current situation, drivers, and external situation, estimate what inventory levels should be, given certain sets of circumstances. There are impressive supply chain modeling tools to help you do this. Our experience is that developing an accurate detailed inventory behavior model is quite a chore to create and a major task to maintain, so we usually dont. Normally working on projects with limited budgets, we study past behavior and focus on the main drivers, seeking to change a few with the greatest potential impact to achieve assigned objectives- sort of a delta approach.

Dont let us talk you out of sophisticated modeling tools, though. They have their place. When there are very large amounts of money involved and/or tricky constraints to work around, modeling tools will sometimes help. Many of the detailed control methods presented below contain elements of modeling.

Warning: Calculating or modeling inventory behavior solely by using the rules and parameters will nearly always be wrong. Why: If, for example, you assume that inventory will be an average of times the order quantity plus safety stock, youll most often be wrong. Actual supply and demand variability will differ. Defective items/customer returns may result in buildup. Unmatched sets of parts due to shortages will result in buildup. Generally, it is higher than the model would indicate.

Even the best laid plans can go off track if something changes unexpectedly- a major customer cuts orders, unexpected defects occur, requiring ad-hoc reaction, rather than careful, deliberate, advanced planning.

There are two major directions to approach inventory management from-- Top-Down and Bottom-Up. Most successful companies use a combination of both.

Top-Down this is the macro approach. Start with a goal, objectives, ABC (Pareto) analysis of estimated or historical usage, knowledge of overall processes and lead times. Set overall targets, by business unit at a minimum, preferably at a lower level, so that middle managers or even individual supervisors, work teams or administrative control personnel might be held more accountable. It takes more effort as the control is moved to a lower level.

Establish a tracking system, such as actual inventory versus target level. Compare numbers to actual sales, forecast. Monitor commitments and production plans against targets... Hold managers accountable for results and make them come back with reasons why targets cannot be met and solutions to the problems. Motivate them to solve underlying problems. Help them with problems outside of their scope of authority.

Another good tracking tool is Input-Output Control. Simply build a time-phased table of planned starting and ending inventories, showing starting, input, output and results. Then task employees to make the deltas happen and track the actual values per period.

Bottom-UpLook at each item- determine cost, lead times, supply and demand reliability/variability, defect rate, transportation, storage, set-up/batch size considerations, buffers, process, handling considerations. Then set the proper planning methods and control parameters, to either default down from the enterprise, product line, commodity or department level to default down, or just establish them at the item/part level.

This takes a lot more effort than merely exercising Top-Down control, but it can deliver better results.

Educate and train people in inventory management and control approaches.

How to Control Inventory

After you do all your research and analysis, set targets and establish your control system, then you get to the hard part - actually making it happen.

Quick hits - Simply establishing the aggregate targets, understanding drivers, educating and training, setting up responsibility, establishing accountability and tracking results usually has significant effects. I have seen greater than 50% reductions from this alone. This can be the cheapest, fastest way of making some change happen, but it has a limited effect, because the approach lacks detail and wont make major permanent changes in the ways that the business works without additional actions.

What is Control - Control means to make something happen or to know why if it doesnt, so that something might be done about it. Using that definition, there is no such thing as an uncontrollable situation. Someone once told me that he couldnt control service inventory, because of unreliable vendor lead times. Nonsense! Unreliable lead times might be controlled by several strategies, such as: multiple sourcing, re-sourcing, safety stock, exhorting supplier to improve performance, ordering sooner, improving your own planning and reaction times, changing designs, alternate routing, training customers to order differently, having vendors stock raw materials. At least some of these would work in almost any situation.

Detailed Control Methods

Most of the detailed control methods that follow have some inventory management rationale built in, but it must be properly set-up and tuned for best use. Provide and implement control tools such as:
Order on demand- Order only to fill customer orders. This is the most direct, intuitive method and tends to avoid excess inventory. It will only work if it can meet customers lead time and cost expectations. It works best for custom ordering and when it will result in delivery service meeting customers expectations.
In most cases, organizations must anticipate customer wishes to be successful. This often involves committing inventory in advance, to be able to deliver in time and to produce in economical quantities. So other techniques are often used, such as:
Reorder point- Keep a certain amount available and on order to help ensure that it is available when needed, but not in excessive quantities.
Min-max- This is a modified form of order point, with upper and lower limits established.
Kanban- This is a more sophisticated type of reorder point. Instead of having a single order point, with a relatively large and lumpy order quantity, one replenishes a smaller quantity every time it is consumed. This method was popularized by its success at the Toyota Motor Company in Japan.
MRP (Material Requirements Planning) - formalized in the 1950s by Dr. Joseph Orlicky, MRP uses a master schedule developed from a demand analysis of orders, forecast and production plans. It then considers available inventory, parts requirements calculated from the bill of materials, then factors in open purchase orders, lead times, logistical considerations, safety stock and other ordering rules, to develop a materials purchasing and factory schedule to meet planned and actual demand.
In current times, a companys MRP system is often a subset of its ERP (Enterprise Resource Planning) or Supply Chain Management System, which incorporates MRP as only one portion of an overall Enterprise level system. MRP is not always the most appropriate approach for all environments. In recent years, it has been modified successfully, by incorporating techniques of Kanban, JIT, Lean Manufacturing, Repetitive Scheduling, Theory of Constraints and others.
DRP (Distribution Requirements Planning) this is a specialized form of MRP, for distribution networks. It uses the same principles, but may also consider the dynamics of multi-level distribution networks, service level planning, cross-docking, shipment staging, truck loading, inventory deployment optimization and other considerations.
Supply Chain Planning/Optimization- This is the next level of sophistication for MRP and DRP. It creates a model of the supply chain, which may include suppliers, manufacturing, various levels of distribution and even monitoring of inventory through one or more levels of customer ownership.
Repetitive scheduling- Designed for continuous flow production.
Process monitoring/control - Control of an ongoing, often continuous, process, usually by monitoring and controlling process parameters, such as raw material properties, desired attributes, temperature, pressure, speeds, viscosity, finish, byproducts, etc.
Safety stock/safety lead time - Most of the above techniques might be enhanced by building in supply and demand buffers to allow for fluctuations/uncertainty of what will be needed and when and what supply will arrive and when. It can be done by adding on a fixed quantity or time coverage. The trouble with this approach is that people tend to make the wrong allowances, usually on the high side. This inflates inventory, may actually confuse priorities and use up needed capacity, by working on things not actually needed. The best approach is to try to reduce process variation for supply and demand, so that less safety stock is needed.
Vendor-Managed Inventory - a form of delegation that is proving to be quite popular and sometimes very successful. One provides the supplier with demand and logistics data and makes him responsible for ensuring that the right quantities are available at the right time and place for you to meet demand. It needs cooperation, monitoring and common interests and objectives to be successful.
Input/Output - Dont forget to implement the input-output method, described earlier as a tool to help make reductions.

Pitfalls of using control parameters

With the use of MRP, MRPII, ERP and now Supply Chain Management systems, there are more opportunities to improve inventory management, but also more chances to lose control! Unless there is a clearly stated Aggregate Inventory Management approach imbedded in the system, through education, training and parameters, yes- I said parameters!, you will likely fail.

War story from George Miller: Years ago, I worked for a specialty niche MRPII/ERP company. After I left for the consulting world, a customer of that company called to inform me that the software wasnt working and summoned me to come and help them. After only a day on site, I told them that the problem was that the system was carrying out their instructions at the speed of light, spewing forth recommendations to acquire inventory, based on their unrealistic parameters. You see, most of these systems have various gauges and levers, to set control parameters to tailor the operation of the system to the company, products and process. These might be set, for example, system-wide, but can usually be overridden at the business unit, plant, department, product line and/or part number level. Each level normally defaults down to the lower level, unless you override it.

For example, they used unrealistically long process times in the item master planning records and had safety stock and scrap factors planned at multiple levels in the bill of material, pyramiding (increasing) demand calculations considerably. No surprise then, except to them, that they were well upon their way to doubling their inventory investment in record time, without significant benefits. The prescription was:
1. The management team to get personally involved in setting the system parameters.
2. Educate employees in inventory management concepts and train them in proper use of system tools.
3. Establish and monitor a special report to assess the effect of order modifier parameters, such as safety stock, scrap and attrition factors, order planning method, order quantity rules, order multiples, lead time, review time, inspection time.
Conclusion: Inventory can be systematically managed. It doesnt happen on its own. Needed is a rationale, a plan, education, training, organization, tools, policies, procedures and management willpower.

References:

1. APICS Dictionary, 7th Edition, APICS, Falls Church, VA
2. Production and Inventory Control, Second Edition, George W. Plossl, Prentice Hall, 1985 (originally 1967)
3. Production and Inventory Management, Second Edition, Fogarty, Blackstone, Hoffman, Southwestern Publishing, Cincinnati, Ohio, 1991
4. Inventory Reduction, George Miller, 1990.
5. IQR Manual, IQR International (Proprietary document), San Juan Capistrano, CA

Purchasing Inventory Management Software for Process Manufacturing Businesses

2008-01-31T00:58:00.001-08:00

Reducing inventory management costs is an essential and integral part of any business, but none more so than in the process manufacturing business. Proper inventory management can make a real difference in obtaining and retaining a competitive edge in the sales markets for the particular products a company offers. Modern inventory management is often much more complicated than the once standard practice of simply keeping abreast of inventory levels and costs. Today's process manufacturing businesses need integrated inventory controls that are streamlined for effective operation with distribution, compliance and other software protocols. Often, because of the discrepancy between prices for large vs. small orders, volume pricing controls are necessary. Process manufacturers may also need to set complex pricing structures based on differing sales stratagems for wholesale, retail or online sales. Consideration should also be give as to whether or not automation applications should be inherent in the inventory management software itself. For larger companies, software that can not only keep track of stock levels but also relay ordering notification information is a necessity. Aside from specialty features, inventory management software should offer almost unlimited capabilities to assign categories departmentalize and compartmentalize various incoming and outgoing resources. As process manufacturing is one of the most challenging industries in regard to inventory (and in general), the level of complexity necessary to effectively keep track of resources is substantially high, and must be reflected in the abilities of the software. Additionally, inventory management software must be integrated into an organizations pre-existing software or must be offered as part of a fully encompassing business solution system that incorporates applications for all aspects of the process manufacturing business. Because most inventory management software applications are offered as part of a larger financial, distribution and general process manufacturing application, knowledge with the software offerings available to the industry as a whole is highly recommended.

To learn more about Inventory Management Software or to purchase visit http://www.summitt-biz.com/ Visit Submit Solutions to learn more about Inventory Management Software or to purchase.

Manage your Inventory by using Inventory Management Software

2008-01-31T00:57:00.001-08:00

If you have a company that handles large amounts of inventory you're going to want to have a system in place that lets you manage your inventory in a way that you always know exactly what you have on hand, what has been sold and spoken for, and what stock you have arriving. Managing the fulfillment of your orders is very important so that you don't run out of inventory. Running out of inventory can mean losing sales and this is a scenario that you want to avoid. Inventory management can be made easy with the use of inventory software that is available to do all the work for you. No more papers lying around waiting to be filed.

Inventory software is easy to use and will most times come with a tutorial to help you get started. You'll be able to keep track of the inventory that pertains to your business without ever having to second guess yourself again. As well as an accurate record of what inventory you have on hand you'll also be able to keep track of your costs, expenses, and debts. Most inventory management will also let you keep track of the equipment that you have that is used as your business capital. If you have any equipment that is depreciated you'll be able to tell at a glance what the value is. With all the functionality of an inventory software program you may be able to reduce those other types of business software that you're using to keep records and information about other aspects of your business.

There are many different types of inventory software on the market. If you're unsure about what management system to buy you can check reviews of software in many business magazines and journals. Many software companies will offer their software with a trial version so you can use they program for a couple of weeks or will give you an extensive online overview of their product before you decide to buy.

James Hunt has spent 15 years as a professional writer and researcher covering stories that cover a whole spectrum of interest. Read more at www.inventory-management-center.com

Lean Manufacturing and the ERP Inventory Management Software Solution

2008-01-29T01:29:00.001-08:00

Since the introduction of the lean system of continuous improvement manufacturing (CI), the desire has always been for inventory management that minimizes stock on hand, if not fully eliminating it. True to lean principals, by eliminating waste at every turn in the manufacturing process quality is improved while production time and costs are reduced. As one of the ?seven wastes? in lean philosophy, inventory proves to be inefficient when a plant maintains more on-hand inventory than is minimally required to produce products in the immediate time frame. Rather than the batched, push-production system where large inventories are maintained for the potential of future sales or supply chain problems, lean methods employ a pull-production system where orders are pulled from customers and raw material as inventory is maintained only long enough to be swept into production?just in time (JIT), so to speak.

Certainly, manufacturers today are seeking to be more productive and less wasteful with regards to inventory management. For example, there is a train of thought that by decreasing randomness in the manufacturing process, you also decrease inventory. From this thinking has emerged the notion of total enterprise resource planning (ERP). Here concepts such as system flow, quality of performance, labor productivity, purchasing and materials management, inventory, and shipping are all integrated in terms of procedure and communication. With the real-time data available through ERP software, plant departments are integrated and coordinated toward the goal of decreasing randomness in the production process.

With a robust ERP software package, lean inventory management is facilitated in all aspects of the operation and should include the important functions of: cycle counting, supply & demand, and turnaround/turnover. In essence, it is this sort of inventory management and efficiency tool that is at the heart of the building and utilization of successful CI systems today.

For example, in the cycle counting mode, inventory managers can run inventory audit lists tagged to any period of time to answer the question of why there are discrepancies in inventory numbers. As for turnaround/turnover, ERP inventory management software is suited as an assessment tool for gauging how JIT any manufacturing system really is through the number of turns the inventory takes; and of course, increased turns is the desired result of a lean system eliminating waste by the reduction of on-hand inventory.

Regarding supply and demand chains, inventory management through ERP software is able to review key time-critical data to balance the time phasing requirements of materials, parts, and tools. That is to say, with a robust ERP manufacturing solution, inventory managers are in the position to make informed decisions concerning demand chains and supply chains. This is especially true in the newly emerging vendor managed inventory systems (VMI) that are increasingly seen as the logical extension of lean manufacturing methods and JIT inventory management.

These aspects of inventory management are vital elements for inclusion into any robust ERP software package seeking the leaning of manufacturer operations. With the knowledge gained through the real-time data available in ERP, inventory management becomes a central point of analysis for finding additional efficiencies in the system flow. It is in this way that efficiencies in manufacturing eliminate waste in the process. By offering the user a complete inventory management package that interconnects with all other shop areas in the production process, integrated ERP software builds a CI environment that enhances both productivity and profits.http://www.globalshopsolutions.com/optimized/erp-software/erp-materials-management.asp

Dusty Alexander is the President of Global Shop Solutions. Global Shop Solutions is the largest privately held ERP software company in the United States.

Inventory Accounting Software: A Must Have In For Business Entities

2008-01-28T01:17:00.001-08:00

Establishing optimum inventory is the most important thing for any organization. For, optimum inventory is the level that is sufficient to meet the projected demand, but not enough to erode the projected profits.

But managing a modern inventory itself requires dealing with many things like identification of the functions performed by the inventories, establishment of correct relationship between inventory functions and inventory levels. Thus, to keep inventories at optimum level various strategies have to be worked upon. And inventory accounting software comes handy for it.

You have lots of options to choose from in case of inventory accounting software. The different options before you range from a basic wholesale distribution ERP program to full-featured, professionally-developed inventory management software.

For your inventory control and management needs, you naturally want to choose the best one. But the question is how? Luckily for you, it is quite possible today to choose a professional, customizable, inventory accounting software which is affordable as well as efficient for your business.

Take for example, if you have a distribution company, then wholesale distribution management and warehouse automation are central to the company. Herein, you should look for an inventory accounting software tackling all these.

An inventory accounting software is widely applied in different industries to track a wide range of inventory types. An inventory accounting software provides the flexibility and depth of functionality required to maximize both your profit and customer service.

Precise inventory control and accurate ERP/MRP information must be at your fingertips to run your business smoothly all the time. Overstocked inventory as well as out-of-stock items can be ruinous to your bottom line and reputation. In fact, it is possible for your company to take a nosedive to bankruptcy due to inaccurate inventory control. Inaccurate inventory counts could happen due to shipment delays, lost sales and excuses.

So management in the company needs to look out beyond survival in today's fiercely competitive business world. An excellent inventory control software solution with advanced features like kitting, serial number tracking, complete sales and purchasing functionality as well as ERP automation that is dependable and robust is critical in the quest for market leadership.

One such inventory accounting software is Microsoft Business Solutions Great Plains Inventory Control which is aimed at mid-size companies. Great Plains Inventory comes with numerous features. Great Plains Dynamics / eEnterprise is developed with clear ERP work-flow. Inventory control has a connection to General Ledger and interacts with Invoicing, Sales Order Processing, and Purchase Order Processing later.

One thing which you should remember while purchasing inventory accounting software is inventories have to be priced shorter than net realizable value, barring a few exceptions. The inventories of by-products, consumable stores, non-reusable and reusable waste constitutes the exception. You can determine the historical cost of inventories using LIFO (last in first out) or FIFO (first in first out), average cost formula.

Source: Free Articles from ArticlesFactory.com

The author writes articles on different topics. To get more accounting software articles visit http://www.managemyaccounting.com/

Inventory Software: What It Is And How It Can Benefit Your Business

2008-01-24T23:30:00.001-08:00

When a small business owner shops at a retail chain store, he or she might be a little green with envy, seeing how well the inventory control system works at that store. If an employee is asked how many of a certain item the store has on hand, that worker can find the answer by simply scanning a bar code. Many small or medium businesses do not have that capability, but wholeheartedly, wish that they did.

That envious color of green can actually become ?tickled pink,? even for a small business owner who thinks inventory tracking is beyond his competitive and financial reach. This is because inventory software is now available in affordable price ranges, with right out of the box, ready-to-use, capture and tracking systems. Inventory control software provides the business owner with programs and solutions to manage any type of product inventory. Items can be checked in or out. Products can be located with ease, and an up-to-date inventory is constantly maintained. All of this is accomplished within minutes of the initial start-up!

Since the small business market place is growing at a record pace, it is only natural that inventory software for this market area should keep up with that growth. The small business owner would be wise to take advantage of these new advances. A small business? inventory may be tracked in a number of ways, including by serial number, lot, pallet, purchase order, or date code. Inventory labels and custom labels can be created and printed with barcode label software that is included in the inventory control solution. Countless reports to help you better manage your inventory can also be generated with user-friendly inventory tracking software. All of these benefits to a business can be achieved at a surprisingly low cost.

The greatest advantage of inventory software is its ease of use. Small business owners rarely have any extraneous minutes in a day to devote to a new product, let alone to a new inventory system. That?s why inventory control software is such a plus for the small or medium sized establishment. It saves time immediately. Improved inventory control frequently translates to increased sales and more revenue, particularly in today?s electronic age, which has elevated client expectations for immediate delivery. Maintaining up-to the minute inventory control, knowing where inventory is located, on or offsite, and what the on-hand amounts are improves distribution and customer response time. A good user-friendly system will feature a graphic-oriented, simple-to-use interface that makes the whole process a snap.

High-tech inventory control, with all of its labor, time, and money-saving devices, is no longer exclusive to large companies. The small or medium sized business entrepreneur need not be envious any longer. It behooves smaller business owners to check out the latest inventory software packages , to see for themselves what advances have been made in technology. In just a few minutes of time, a business can make that huge leap from the twentieth century to the twenty-first!

By a freelance writer for WaspBarCode.com/: http://www.waspbarcode.com providing Inventory Software. Article reproductions must include a link pointing to http://www.waspbarcode.com/ .

Warehouse Inventory Software

2008-01-24T23:29:00.001-08:00

Warehousing is the second major component of physical distribution. When talking about warehouse inventory software, it is necessary to understand warehousing management. It has two distinct and equally important parts. First, there is the physical job of creating and running the network of storage points. Second, there is the managerial task of controlling the inventory levels. Though interrelated, they require separate and detailed discussion.

Like transportation, warehousing vests the products with time and place utility. In the case of some commodities, they also form utilities as well. It is common knowledge that a certain level of storage of products is an inescapable part of marketing. And, for products with a high degree of seasonality, larger scale storage is a must. In some cases, sub distribution or transit bottlenecks and increased lead-time of delivery necessitate extra storage.

Usually a product flows from the factory to the consumer through a long winding chain, consisting of multiple tiers of warehouses. In designing a warehousing system, it is necessary to raise and answer the following basic questions relating to this flow:

How many warehouses should we have?

Where should we locate them?

What should be the size or capacity of each of them?

While developing warehouse inventory software, the firm should remember that once the warehousing system is designed and put into operation, it becomes a partly fixed and partly adjustable entity. This is so because with most products, the demand in a given marketing territory consists of an average/constant component and a transient component. As a result, warehousing will have a constant component and a variable component. This automatically means that some adjustment is feasible in warehousing depending on market behavior. Generally speaking, the fewer the number of warehouses in the marketing territory, the lower the cost of warehouse inventory software.

Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Inventory Software is affliated with Fleet Maintenance Software Reviews.

Small Business Inventory Software

2008-01-23T02:03:00.000-08:00

Producers normally use a number of marketing intermediaries for taking their products to market. It is more significant in the case of small business inventory software. Marketing intermediaries bear a variety of names such as sole selling agents, marketers, wholesalers, distributors, stockists, franchised dealers, retailers, authorized representatives, broker, commission agents and jobbers. All intermediaries constitute the distribution channel in small business inventory software.

Distribution channels play a pivotal role in the successful marketing of most products, especially consumer products. Distribution channels bring together the makers and the users in an efficient and economic manner. It is not practical for any manufacturer to organize a network of his own selling points and sell his products directly to consumers totally avoiding outside distribution channels. Just like mass manufacturing, mass distribution needs resources in like money, materials and men.

No manufacturer can easily command these resources. Assuming that the resources can be found, the question arises whether it would be advantageous for the manufacturer to carry out the distribution function himself and totally avoiding marketing intermediaries. Analysis shows that there are more disadvantages than advantages to working independently. If intermediaries are not there, the firm will have to make direct contacts with far too many customers. Marketing intermediaries minimize the number of contacts the firm has to make to sell its products.

In other words, intermediaries offer a firm the vital advantage of distributional efficiency. Distribution channels at small business inventory software combine the products and components manufactured by different firms and offer them in an assortment that are convenient to final users. The final users, in most cases, prefer an assortment of items, and they do not prefer to shop at outlets that fail to provide an assortment of all the products that they require.

Home Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Home Inventory Software is affiliated with Fleet Maintenance Software Reviews.

Restaurant Inventory Software

2008-01-19T00:35:00.001-08:00

Marketing is the buzzword when talking about restaurant inventory software. Marketing starts with the determination of consumer wants and ends with the satisfaction of those wants. The concept puts the consumer both at the beginning and at the end of the business cycle. It stipulates that any business should be organized around the marketing function, anticipating, stimulating and meeting customer requirements. The customer, not the corporation has to be the center of the business universe.

Restaurant inventory software cannot succeed by supplying products and services that are not properly designed to serve the needs of the customers. It proclaims that the entire business has to be seen from the point of view of the customer. In a company practicing this concept, all departments will recognize that their actions have a profound impact on the company?s ability to create and retain a customer. Every department and every worker and manager will ?think customer? and ?act customer?.

The other distinguishing feature of restaurant inventory software is integrated management action. Integrated management action simply means that all the different functions of the business must be tightly integrated with one another, keeping marketing as the pivot. This is essential because every function has a bearing on the consumer, and the aim is to see that all the functions lead to a favorable impact on the consumer. For this to happen, all functions have to be integrated and properly aligned with marketing.

In organizations that do not practice integrated management, the different functions of the organization are preoccupied with the optimization of their specific activities, often at the cost of optimization of the overall result. Consumer satisfaction, which is a major theme of restaurant inventory software, is again not an end in itself. The concept does not preach that a firm must generate consumer satisfaction and forget the other goals of the organization. Instead, it treats consumer satisfaction as the pathway to the attainment of all the goals of the organization.

Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Inventory Software is affliated with Fleet Maintenance Software Reviews.

Inventory Software

2008-01-19T00:34:00.000-08:00

To understand inventory software, it is important to take a close look at the main issues involved in managing inventory. First, there has to be correct identification of the functions performed by the inventories. Second, there has to be an establishment of the right relationship between inventory functions and inventory levels that decides the optimum level of inventory. Finally, strategies have to be worked out to keep inventories at optimum level.

Of these, the most important issue is defining what the optimum inventory is. In simple terms, it is the level that is sufficient to meet the projected demand, but not enough to erode the projected profits. The firm has to determine at what inventory level it can avoid lost sales due to stock out situations. Lost sales are a relevant concept in inventory management from more than one angle.

It is quite easy for any firm to totally avoid stock out situations and the consequent risk of lost sales by maintaining a very high level of inventory incurring a heavy cost. Sound business calls for optimization of inventory levels and costs subject to the condition that the forecasted sales are realized from the relevant territory. Reducing the inventory levels can reduce inventory costs. Obviously, one must assess the probability of run-out and the effect on sales and profit and offset the costs of holding the stocks against the profits accruing from holding the stocks and realizing the sales.

Since the task is basically one of offsetting the costs of holding the inventories against the benefits derived by holding the inventories, inventory management is essentially a balancing act. Inventory is primarily a function of the customer service level fixed by the firm. And the customer service level in the physical distribution context is primarily a function of the ability to meet a demand at the retail outlet level as and when the demand arise from the readily available stocks without having to generate a back order.

Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Inventory Software is affliated with Fleet Maintenance Software Reviews.

Inventory Tracking Software

2008-01-18T01:37:00.001-08:00

In view of the close interrelation between inventory level and customer service level, inventory control definitely involves a compromise between cost and service. These two factors are the main ingredients of inventory tracking software.

The different functions of physical distribution such as transportation, handling, warehousing and inventory management interact constantly with one another. As the functions are interdependent, the costs are also closely interrelated. Very often, one function offsets the other. For example, if the firm is prepared to incur increased cost on transportation, it may be in a position to reduce its warehousing/inventory cost. This is because when there are no curbs on transportation costs, the firm can use faster modes of transport and rush the stocks to the desired warehouse, and thereby keep inventory at reduced levels. The opposite is also true when warehousing/ inventory holding is unlimited, slackness in transportation does not cause damage to sales.

This means that none of the physical distribution functions can be handled in isolation. They have no separate identities. They need a high degree of coordination and common direction. If the functions are scattered in an arbitrary manner among different departments of the company without a common direction, control will become fragmented and effectiveness will be adversely affected. In fact, under such a situation, the very objectives of inventory tracking software get fragmented and distorted. The different functions would pull in different directions. The transportation people would go all out to reduce the cost of transportation unmindful of the effect of such a policy. They would settle for less reliable and slower modes of transport. The sales people, on the other hand, would opt for large inventories in several locations with a view to maximize customer service.

Home Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Home Inventory Software is affiliated with Fleet Maintenance Software Reviews.

Inventory Management Software

2008-01-17T02:21:00.000-08:00

Inventory Accounting Software

2008-01-13T23:10:00.002-08:00

When talking about inventory accounting software, barring a few exceptions, inventories should be valued lower than historical cost or net realizable value. The exceptions are the inventories of consumable stores, by-products, reusable waste and non-reusable waste.

For the purpose of comparing historical cost with net realizable value, each item in the inventory may be dealt with separately, or similar items may be dealt with as a group. The historical cost of inventories should normally be determined by using the FIFO (first in first out), average cost or LIFO (last in first out) formula.

The specific identification method may be used for inventories of items that are not ordinarily interchangeable or for goods manufactured and earmarked for a specific purpose. Under the specific identification method, specific costs are identified with goods segregated for a specific purpose. The adjusted selling price may be used in retail business or in businesses where the inventory comprises items whose costs are not readily ascertainable. Adjusted selling price method is also used by some manufacturing organizations for valuing the inventory of finished products held against forward sale contracts.

The standard cost method of valuing inventories may be used if the results approximate consistently with results obtained in accordance with FIFO, average cost or LIFO formula. Overheads, other than production overheads, should be included as part of the inventory cost only to the extent to placing inventories in their present location and condition.

The accounting policy adopted for the valuation of inventories, including the cost formula used, should be disclosed in the financial statements.

Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Inventory Software is affliated with Fleet Maintenance Software Reviews.

Home Inventory Software

2008-01-13T23:10:00.001-08:00

We have seen that a business can take its products to users in more ways than one. It can use different types of tools and structure its channel into a single tier, double or triple tier outfit. However, it cannot easily determine which one is the best. Home inventory software is designed to help businesses decide how best to run its business successfully.

A business is faced with a number of questions: Should create its own channels or use conventional intermediaries? How many wholesale points should it have to ensure satisfactory market coverage? Where should these wholesale points be located? How many retail points should a business have? Where will these retail points be located? The firm has to make a careful analysis and then select its channel design.

The main steps involved in developing home inventory software are formulation of channel objectives, identification of channel functions, analyzing the product characteristics and linking channel design to the product. In addition, evaluation of the distribution environment, including legal aspects, evaluation of company resources and matching the channel design to the resources is also very important when talking about home inventory software.

Formulation of channel objectives is the first step in planning and designing home inventory software. The objectives clarify the end result. Basically, any business firm seeks to cover a target market through its channel. The goal is to make sure that the consumer goes through minimum exertion to procure the product. Formulating objectives also plays a pivotal part to ensure that the firm is able to carry on with its manufacturing activities and remain confident that the channel will take care of the distribution job. In each of the above areas, the firm specifies the precise level it seeks to realize. The intensity of market coverage sought, the service level to be maintained and other objectives that will naturally vary from firm to firm.

Home Inventory Software provides detailed information on Home Inventory Software, Inventory Accounting Software, Inventory Management Software, Inventory Software and more. Home Inventory Software is affiliated with Fleet Maintenance Software Reviews.

Purchasing Inventory Management Software for Process Manufacturing Businesses

2008-01-11T00:42:00.000-08:00

To learn more about Inventory Management Software or to purchase visit http://www.summitt-biz.com/ Visit Submit Solutions to learn more about Inventory Management Software or to purchase.

Manage your Inventory by using Inventory Management Software

2008-01-11T00:33:00.000-08:00

James Hunt has spent 15 years as a professional writer and researcher covering stories that cover a whole spectrum of interest. Read more at www.inventory-management-center.com

FBI and Their Super New Warehouse Database; Should We Be Impressed; Woooo!

2008-01-09T00:13:00.001-08:00

The Federal Bureau of Investigation is out doing public relations and press releases again? Oh no, what did they do wrong this time? One hates to think. Will the FBI and their Super New Warehouse Database finally protect the American people? Should We Be Impressed; Woooo! Well unfortunately my thoughts on this are;

We simply cannot trust the FBI or little humans who WILL use such a system for their personal rise to power. Question; is this the same FBI that failed us on 9-11, spent 500 Million on a new system and scrapped it and Now? Now they have it all figured out by Golly? Sure? Space us the BS and Press Releases. Show Us.

The United States Government's job is to protect the American People. The FBI has failed their responsibilities and NOW? Now, they purport to have it all under control? I am not buying it one bit. How much of that data is utterly bogus BS, collected from sources, without knowledge that the data is correct? How many Americans will they harass, attack, label, with their garbage in - garbage out NEW Trusty Data Base?

Sorry folks, the FBI has done a piss poor job in the past, cried wolf at every turn and before every major Senate appropriates International Terrorist funding bill vote? And now you want all of us to trust the United States Justice Department's little FBI agency? No way, Jose. Trust yourself, buy a gun and protect your family.

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is a guest writer for Our Spokane Magazine in Spokane, Washington

Warehouse Management

2008-01-09T00:12:00.000-08:00

Warehouse management is the technique of supervising the receiving, handling, storing, moving, packaging, and distributing of materials in and around the warehouse. They deal in finished goods and involve functions such as cross-reference lists and warehouse master records. On the other hand, there are other tasks such as allocation of the goods, transfer in process, safety of stock, acquiring statistics by location, and safety of stock, also maneuvered by the warehouse management. To supervise all the above functions, a warehouse manager is appointed, who is required to record and supervise deliveries and pickups, keep an account of the tracking systems, loading and unloading supplies and other materials. Amongst all the responsibilities, distribution of necessary stock to required places at accurate times is the most important task of the warehouse manager.

Warehouse managers must have appropriate knowledge of inventory measures and control, warehousing systems, material storage, unloading and loading techniques and mathematical knowledge. The warehouse management is an essential constituent and deals in effective distribution chain management system solutions. Today the term warehouse management also deals in accounting systems, transportation management, light manufacturing, and order manufacturing - apart from the traditional role of storage and delivery. Warehouse management systems (WMS) help to increase correctness by reducing the cost of labor and achieving greater ability to serve the consumers.

WMS, however, does not serve greater storage capacity or inventory decrease, and may not affect leading factors such as lot sizing, demand variability, and guide times. Various developed enterprises have emerged in the field of warehouse management, which provide software for development solutions that help manufacturing and distribution industries.

Various guidelines regarding the warehouse management are also available on the Internet. These sites are dedicated towards explaining the concept of warehouse management and making customers as well as warehouse owners understand the growing need for them. Detailed features of the warehouse management systems are discussed with apt case studies for better illustrations and comprehension of the customers. WMS software can also be downloaded either for free or a minimal cost from certain websites, thus, facilitating easy acquisition of the latest management tool.

Warehouse provides detailed information on Warehouse, Warehouse Management Software, Tire Warehouse, Furniture Warehouse and more. Warehouse is affiliated with Contract Warehousing.

Warehouse Management Systems

2008-01-06T22:20:00.001-08:00

Warehouse management involves physical warehouse infrastructure dealing with receipt, storage and movement of goods within an operation and then process the associated transactions. Knowledge about inventory control and warehousing systems, transport management, order management, mathematical calculations for optimum storage, risky goods management and entire accounting system.

A Warehouse Management System (WMS) is an important part of an effective Supply Chain Management system. Implementation of WMS along with data collection will increase accuracy, efficient labor utilization to save costs without affecting goods movement cycle.

Implementation of a WMS:

The basic logic of any WMS software is combination of items, location, quantity, unit of measure, order information, where to stock, to pick up from and in what sequence to perform these operations. It is all about directed movement before you set up the extensive warehouse system by assigning specific logic to the various combinations of item/order/quantity/location and information in correct sequence.

• Location Sequence: Define the pick up flow through the warehouse and assign a sequence number to each location.

• Zone Logic: It designates an area; combine this with exact location logic within the zone to direct picking, put away, replenishment to and from specific areas of the warehouse.

• Fixed Location. It uses pre-determined fixed locations per item piece picking, case-pick operation, put away and replenishment.

• Random Location: It generally refers to areas where products are not stored in fixed locations. With combination with other logic, exact location can be determined.

• FIFO: Directs picking from the oldest inventory first. First-In-First-Out.

• LIFO: Last-In-First-Out is very relevant for overseas customers because of longer transit time. Especially useful for distribution of perishable goods for both domestic as well as overseas customers.

• Quantity or Unit of Measure: Allows you to pick directly the same item based upon the quantity or unit-of-measured order from different primary picking or reserve storage locations.

• Few Locations: This logic is primarily used for productivity. It determines least number of locations needed to pick the entire quantity or to stock the entire quantity. The only drawback of this logic is poor space utilization.

• Pick-to Clear: Great for space utilization as it directs pickings to the locations with the smallest quantities on hand.

• Reserved Location: It predetermines specific location to move inbound or outbound shipments, even to an awaiting outbound trailer.

• Nearest Location: This directs goods for picking/put away to the closest available location to that of previous set up.

• Maximize Cube: Slightly impractical, but uses unit dimensions to calculate cubic inches per unit to cube capacity of the location. Units can then be stacked in a manner that it fills every cubic inch of available space.

• Consolidate. It creates additional moves to consolidate, such as, products stored in multiple locations.

• Lot Sequence: This logic uses lot number or lot date to determine locations to pick from or replenish.

Other Functions/Considerations of WMS:

• Activity-based costing/billing for shipment, storage or transaction
• Labor tracking/ Capacity planning in manufacturing
• Yard management for cross docking of trailers
• Slotting of packages in best locations
• Pick cartons is best for similar size and weight cartons
• Cycle counting for operational functionality
• Advanced shipment notification to automate receiving process
• Automated data collection with bar codes
• Task interleaving and order picking to obtain maximum productivity
• Combine multiple logic methods to determine best location for pick up, put away to optimize space utilization and productivity.

The functioning of WMS has many operational constraints, but is essential to serve the customers better and maintain the competitive edge.

Alexander Gordon is a writer for http://www.smallbusinessconsulting.com - The Small Business Consulting Community. Sign-up for the free success steps newsletter and get our booklet valued at $24.95 for free as a special bonus. The newsletter provides daily strategies on starting and significantly growing a business.

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Warehouse Management Software

2008-01-06T22:19:00.000-08:00

Managing a warehouse is not necessarily a very easy task. To be highly successful in this dynamic and exciting market and business environment, it is very crucial to evaluate each and every function of the business. The company must arm itself with state-of-the-art warehouse management systems. The warehouse management system must quickly and cost-effectively integrate the functionality required to solve the challenges of the business, with the ability to adapt to changing requirements and technologies. The warehouse management systems help in various aspects like picking, packing, receiving, shipping, inventory control and audits.

The warehouse management system must provide best-of-breed solutions to maximize operational efficiency and increase output. It must reduce costs to improve the bottom line. Today's warehouse management systems must have intelligent work direction modules compatible with RFID technology to provide reduced labor costs, increased productivity, better space utilization and great accuracy.

The next must-have module is accurate real-time inventory management. This module helps to facilitate better decision-making and reduce safety stock, shrinkage and spoilage. Thus, it helps reduce the inventory carrying cost.

The warehouse management system must have a detailed audit trail module. It must measure performance levels objectively, and ensure employee accountability and easy trace of material flow.

The warehouse management system must be compatible with the company's current information system. The company can order a customized solution tailored to its needs, or it can go for readily available and cost-effective solutions. The companies also look for security measures for the warehouse management systems. Many software solutions come with built-in security measures.

Warehouse provides detailed information on Warehouse, Warehouse Management Software, Tire Warehouse, Furniture Warehouse and more. Warehouse is affiliated with Contract Warehousing.

Warehouse Management Guide

2008-01-03T00:46:00.001-08:00

Warehouse management is the art of movement and storage of materials throughout the warehouse. Warehouse management monitors the progress of products through the warehouse. It involves the physical warehouse infrastructure, tracking systems, and communication between product stations. Warehouse management deals with receipt, storage and movement of goods usually finished goods and includes functions like warehouse master record, item/ warehouse cross-reference lists and such things as on hand, allocated, transfers in process, transfer in process, transfer lead time, safety stock, fields for accumulating statistics by location.

A warehouse manager needs to perform several crucial functions such as overseeing and recording deliveries and pickups, loading and unloading materials and supplies, maintaining inventory records and tracking system, determining appropriate places for storage, rotating stock as needed and adjusting inventory levels to reflect receipts and disbursements. An individual handling the warehouse management needs to have knowledge about inventory control and warehousing systems, loading and unloading procedures, risky and materials storage and mathematical knowledge.

A warehouse management system is a critical component of an effective overall supply chain management systems solution. Warehouse management system began as a system to control movement and storage of materials within a warehouse. Today it even incorporates tasks such as light manufacturing, transportation management, order management, and entire accounting systems.

Implementation of Warehouse Management System (WMS) will provide you an increase in accuracy, reduction in labor costs if the labor employed to maintain the system is less than the labor saved on the warehouse floor and a greater ability to service the customer by reducing cycle times. WMS may not serve you with inventory reduction and greater storage capacity. An increase in accuracy and efficiency receiving process might lead to reduction in level of safety stock required. But the consequence of this reduction will hardly be visible to the overall inventory levels. WMS might just not affect the factors (lot sizing, lead times and demand variability) controlling the inventory levels. However WMS is instrumental in more efficient and organized that leads to increased storage capacity.

Lately in the field of warehouse management, Infor, the largest global enterprise software provider is developing solutions for the manufacturing and distribution industries. Infor’s management technology is meant for enterprise resource planning (ERP) system. Infor technology can be used for single as well as multiple warehouses. It allows manufacturers and distributors to perceive and monitor the location of particular items within the facility. The technology is also extremely beneficial in ascertaining the size and weight of incoming shipments to set up the perfect way to transport and place them in the warehouse. The professional experts at Infor are planning to integrate it into Infor’s Microsoft.Net based ERP system for manufacturers.

Mansi Aggarwal recommends that you visit Warehouse Management for more information

Microsoft Great Plains Logistics & Warehouse Management - Implementation & Customization Highlights

2007-12-30T22:47:00.001-08:00

Logistics automation is often considered as barcoding extension to Sales Order Processing, Purchase Order Processing, Inventory Control modules. Software extensions makers may disagree with this simplification, but budget solution works exactly like barcoding extension and is usually done via Great Plains Dexterity, Modifier with VBA and SQL stored procedures. If your company is looking for implementing automated inventory bin/item pickup and conveyer – then you need specialized software. However if you just envision your warehouse workers with barcode scanners – then read this article to understand your options with Microsoft Business Solutions Great Plains.

• Warehouse Automation. When you are looking for warehouse management automation – you should research supply chain management applications available on the market. Usually they are expensive and targeted to large logistics clients. You can use Microsoft Great Plains inventory module features, such as locations or sites, serial/lot number tracking, inventory count, inventory transfers and combine these with simple VB-based barcoding to feed documents from your barcode scanners to Great Plains directly.

• Random Weight. Food distribution – you might be purchasing food in cases or other variable weight units and resell them in pounds or kilograms to end customer. So – you need parallel quantities tracking with probably serial numbering for each case. This is typical customization for Inventory, Sales Order Processing (SOP) and Purchase Order Processing (POP) modules in Great Plains. It should be done in Great Plains Dexterity to provide seamless interface for GP users. In addition to parallel weight measures (cases and pounds) you may also need average weight control to prevent issues with your warehouse workers

• Recurring Customer Orders. You may figure out that majority of your customers order the same items each time with regular intervals. In this case you can have customer typical order screen to automate order taking. Plus – you may have associated and replacement items logic incorporated in this screen.

• Automated Shipments. If you sell on consignment – you may simply send trucks to your customers every day with recommended combination of items, based on historical data – day of the week, holidays, seasonal variations, etc. And barcode could help you in automatic picking ticket printing and allocation

Good luck and you can always seek our help in customization, implementation, integration and support. Call us: 1-866-528-0577 or 1-630-961-5918, help@albaspectrum.com

Andrew Karasev is Chief Technology Officer in Alba Spectrum Technologies – USA nationwide Great Plains, Microsoft CRM customization company, serving Chicago, California, Arizona, Texas, Florida, Georgia, New York, Australia, UK, Canada, Continental Europe, Russia and having locations in multiple states and internationally ( http://www.albaspectrum.com ), he is Dexterity, SQL, C#.Net, Crystal Reports and Microsoft CRM SDK

Inventory Stock Control Software

2007-12-27T23:28:00.001-08:00

Inventory management and control is an integral part of a business- either a manufacturing firm or a service-firm. Efficient inventory management is absolutely essential, not only to keep the firm running smoothly, but also to represent professionalism and profitability to potential customers and investors.

Inventory stock control is a part of inventory management that relates to maintaining stock levels effectively. Inventory stock control software is a tool that helps in inventory tracking and controlling stock levels, real-time as well as batch. It proficiently deals with order entry, point-of-sale (POS) invoicing, quotation generation, invoice generation, preparing purchase orders, dealing with recurring invoicing, and handling multi-job service orders. The software has intelligent interfaces that can determine when stock needs to be reordered, giving the user complete control over the inventory cycle. This helps keep the inventory always stocked up so that the user does not lose an order due to insufficient stock. The software can also identify and remove dying stock. It can track sales trends over a period of time and report on expected orders. Other useful features include barcode generation, customer and supplier database management, email support, multi-user interface, reorder management, group inventory, and generation of custom reports.

Integrated Inventory Management Software from NetSuite, XpertMart from Dinari Systems, Inventory Strategy Manager from Entalysis, iMagic Inventory Software from iMagic, Inventory4000 from Real Asset Management and STOCK.NET from Xpress Data Systems are some of the products available. Inventory stock control software can be bought for $199. There are many advanced versions also available, for a higher price. Most providers also offer free demo versions for a limited period. The minimum system requirements for installing this software are: an Intel Pentium processor, Microsoft Windows 95 OSR 2.0/ Windows 98 SE/ Windows Millennium Edition/ Windows NT 4.0 with Service Pack 5/ Windows 2000/ or Windows XP, 32 MB RAM and a 24MB space in the hard disk.

Inventory Control Software provides detailed information on Inventory Control Software, Manufacturing Inventory Control Software, Free Inventory Control Software, Inventory Stock Control Software and more. Inventory Control Software is affiliated with Auto Dealer Inventory Management Software.

Stock Management is an Art - Not Just a Science

2007-12-26T22:33:00.001-08:00

The demand profile of products that have been on the market for a while, using tried and tested supply routes, can be forecast with reasonable accuracy, allowing inventory levels to be lowered to healthy levels. In an ideal world, the manufacturer will produce the right quantity for the demand that is out there and each point in the chain, through importer, wholesaler and retailer, will draw as much stock as they need on a just-in-time basis. In reality, of course, most products have not had years to mature in a tried and tested supply chain. There is no art to setting a computer system to count 'em in and count 'em out again and tell you how many more to order. There is art and almost beauty in a system that can:

1. Take into account the forecast temperature and other weather variables

2. Take account of local, regional, national and world festivals and events that skew demand

3. Use fuzzy logic to mix in this time-yesterday, -last week, -last month, -last year parameters

4. Take account of pricing of the product, including opposition pricing

5. Include related product performance (if you are selling tinned peaches and a load of low priced fresh peaches come onto the market, you may need to trim your forecasts)

6. Fluctuations in currency values and the economy in any given location

7. Demand variations caused by tv shows or films. Product marketing is usually well co-ordinated with a film producer, for instance, but there are often side-effects: some products that were not purposely placed in the film will still see a spike in demand (or even a fall in demand in some cases). Also, competitors may have been caught sleeping, simply unaware of the placement. That brings us to no.8....

8. Market intelligence. What are your competitors up to, or more importantly, what will they be up to?

The above just deals with the demand side. On the supply side of things you may also want your system to take account of optimum production runs, cubing in shipping containers and other vehicles, factory shut-down times, industrial disputes etc etc.

There are systems that can do some of the above. There are also systems that claim to do the whole lot. You will understand, though, that stock management is still very much a human-led activity. A real person needs to see the quantities that the computer has decided to order. There always must be an override facility. Somewhere in the chain a human being must take responsibility for the amount that is ordered. There must always be a watching brief over the variables that any system uses. Most stock management systems are self-correcting. Even the most crude operations have a self-correcting feature where, for instance, out of stocks result in an increased order quantity next time and over-stocks will obviously see a downward adjustment. And that illustrates the point of this article. No system is perfect. Demand and supply patterns do not follow predictable paths - forecastable perhaps, but not predictable. There will be overstocks and out-of-stocks.

The answer? Well this depends on the product's profitability and how critical it is to your business. If a product is very profitable then it would be a crime to run out of stock. You must maintain stock quantity at well above comfortable levels. The high profitability will pay for the extra costs of storage and even pay for write-off or write-down costs if the product suddenly becomes obsolete (it happens!). On the other hand, a low profit product can easily be tipped into a loss-maker by adding overheads that it cannot sustain. High volume products are high volume for a good reason and they are probably being worked in a very competitive environment. The only long terms answer is to drive down supply costs. A way of mitigating the situation is to get the marketing people to find some space between your product and all the others out there. You need an edge so that volumes can go even higher, thus allowing a pro-rata reduction in costs or even so that you can eventually raise the price of your product to match its perceived higher value (I admit that this is simply unthinkable for some products, whatever marketing you throw at it). Just bear in mind that a small operating loss is just the flip side to a small operating profit. Do not panic. On the other hand, it could take weeks or even months to recover from an out-of-stock. The loss of goodwill could be a major blow. You need to be in profit for longer periods than when you are in loss, so tweak the controls and don't take an axe to stock inventories if an overstock has temporarily drawn your product into a loss. The important thing is the long term requirement that you keep the customer supplied and maintain - and grow - demand. High volume demand is a valuable thing. It may seem like you are the busy fools, but you have volume and goodwill, and most companies would do anything for that.

When all is said and done, most points in the chain will keep strategic stock. Some will keep investment stock. Some stock, whether planned or otherwise, will be held for long periods of time. Take, for instance, Christmas lines. Many do not suffer from changes in fashions. The same product will sell year after year. It makes sense, therefore, to mothball some Christmas lines for most of the year until their time comes round again. Did I say mothball? This is apt, of course and brings me on to my last point. If you plan to keep stock for a long period, either intentionally or otherwise, don't forget that it needs some looking after. So, if it is clothes, beware of moths! If it is food, beware the sell-by of use-by date. And for EVERY product, and for everyone out there, beware of DUST!

It simply amazes me that products can come out of storage complete with an added layer of dust. Even well packaged products suffer as the dust finds its way to the primary product. Before I open a tin of beans, I will always wipe off any dust, as this may otherwise find its way into the food. Expensive items - take electrical goods, for example - can be affected to the point that they may need to go back to the factory for a clean up. The worse thing, though, is that customer perception will be damaged. Pallet covers are inexpensive and add only the tiniest percentage to costs. They cover the tops of pallet - where most dust will settle. Pallet shrouds cover the sides as well. They will provide even greater protection not just against dust but also against water from overhead sprinklers.

If you are in the business of stock management, then you will know that the human being is an essential part of the process. There is no computer system out there that has ever been able to do all of it on its own. After all the number crunching has been done - and that is the scientific bit - it is time for the experienced and skilled stock manager to weave his or her magic - and that is the artistic bit. Stock management is more than just looking at numbers. Computers see numbers. People see products and customers.

Vernon Stent is the content writer to http://www.5es.co.uk who proudly sell pallet covers and pallet shrouds.

Restaurant Inventory Software - Made For The Restaurants

2007-12-21T22:24:00.000-08:00

You can get the right restaurant inventory software for your restaurant online. The advantage of buying your software online is that most of the software vendors are able to provide better service over the internet. In the case of the restaurant software too, there are a lot more software available over the net than what you find over the counter at a store. It is also common to find restaurant inventory software to match the most common needs of every restaurant.

The inventory management in a restaurant decides whether that is going to make a profit or not. The healthy running of the restaurant hinges on the fact that the material are optimally used and that there is no wastage. Wastage could happen by over cooking or over estimating the needs and preparing for a sale that might not occur. Or in some cases, there is just no proper control of material issue and usage. The first one is more a managerial decision and if there is a mistake in the planning, then the restaurant has to incur that loss. But then, in the second case, that is not so. You can bring in proper control on the material issue and also maintain a clear percentage ration between what is produced and what is consumed. This would help the restaurant to ensure that it is not spending too much on an item and there is profit in every one of the job that is done. Restaurant inventory software would help you do just that.

The restaurant inventory software would be able to control what is issued and how much it is issued. It will also be able to monitor against which order it is issued. This way, the quantity issued for every order is noted and this would help in identifying and working out a standard for consumption. This consumption pattern would also help in pricing the product if wrongly priced. Or else, can also optimize the price if there is a buffer in the price should there be a competition. Under all these circumstances, the restaurant inventory software would help you arrive at the right figures systematically and not by using any thumb rule.

There is restaurant inventory software available on the internet. You will have to find the one that matches your requirement. Since, you need to find the one that matches your inventory needs as well as billing needs, you can even combine a software that does both the jobs. If you are lucky you might get the software that matches your needs for free. If not, pick up one that is closest to your needs. Download demo software and try out all the features that you want. If everything is comfortable and is in line with your expectations, then you can go ahead and buy the same. All the best to you!

Francisco Segurata owns and operates http://www.inventorymanagementsoftware2000.com and Inventory Management Software

Finding an Inventory Software Solution that Fits Your Business Needs

2007-12-19T23:25:00.001-08:00

If you're looking for an inventory software solution, a simple Web search gives you a myriad of options. It's difficult to know which inventory management software will fit your needs, so here are some tips to find the system that is right for you.

Choose an Industry Leader

Inventory control software is too important to leave to companies that haven't proven their mettle. The best products come from companies that have deployed their software in a wide variety of industries, from aerospace and apparel to manufacturing and sporting goods.

Look for Robust Functionality

The best inventory software solutions provide you with Enterprise Resource Planning (ERP) that integrates solutions for all aspects of your business. Features to look for include:

Analytics: Information is critical to managing and growing your business, but you need more than numbers on a page to transform data into actionable information. Robust inventory control software will give you a range of customizable reporting options, including advanced analysis for the decision makers in your company.

Expiration Date Tracking: If your inventory includes time-sensitive products, your inventory software should track expiration dates from the moment they are received until they are shipped. Because expiration-related issues could crop up in the future, the software should also include the ability to track historical expiration date data.

Manufacturing: Smooth production cycles depend upon sound management of resource planning and production. The right software can allow you to gain a competitive advantage because it gives you the ability to respond quickly to the needs of your customers.

Remote Data Collection: The top inventory software providers can combine software and hardware solutions that will allow you to remotely access vendor and customer data, track inventory and fixed assets, and issue sales orders and receive purchase orders.

Retail Management: If you have retail locations, look for an inventory software solution that can increase the productivity of your employees, adjust inventory at point-of-sale, and automate purchasing.

And, of Course, Inventory Control

The inventory software solution that you choose should have the ability to track serial number, print barcodes, and store item images. It should allow you to define automatic reorder points, the purchase currency and cost, and the sales currency and cost. If you have unique pricing requirements, the software should allow you to assign different price points to the same item. It should also allow for manual counts and adjustments, as well as provide an audit trail for inventory adjustments.

Flexibility is Key

An inventory software solution should be robust, but it should also be flexible. If, for example, you deal in apparel, a module that tracks color, size, and style should be available. If your company provides service and returns, you may need a module that allows you to issue return merchandise authorization numbers, receive replacement items from your vendors, and issue replacement items to your customers.

Whichever inventory software solution you choose, make sure that it has both the features you need at the present time, and those that you may need in the future. In today's competitive marketplace, you can't afford not to have the most up-to-date information available in a form that enables you to make decisions in response to market demands.

Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web. Learn more about Inventory Software Solution or Majon's Business and Entrepreneurs directory.

Improving Efficiency With Warehouse Inventory Software

2007-12-18T22:09:00.000-08:00

There are many benefits to using different software programs in the business world. The computer has opened up more options regarding technology and has made many business practices better, especially when dealing with warehouse management. Technology can mean loads less of paperwork, less time spent doing inventory and most importantly - less money out of a company's pocket! When it comes to warehouse inventory software, a company can handle products goods in a more efficient manner and ship accurately. There are not as many chances for mistakes as when manual labor is in charge because computerized software means no workers getting tired or paid overtime for doing tedious work that they neither want to do nor do you want to pay them to do!

What else does warehouse software improve? These systems are effective the minute you integrate them into your business because they are easily applicable and they are easy to manage for your current staff. There is not that high of a learning curve so adapting to new software isn’t too difficult even for not that tech savvy of employees. It becomes easier for your staff to manage different products as well because with each part of your warehouse separated into ‘bins’ employees only need to look at the database to accurately locate certain things. When you have the need to pick up items from one of your specific warehouses you need only to check the integrated database for a complete listing of current and expected inventories. When you receive goods into your warehouse, your warehouse management software automatically guides you through organization processes so that you can put items away where they should go, and where it will be easiest to get back out in a timely manner.

These organizational systems are flexible for easy to manage product changes. Say you have to adapt to changing products and you want to adjust your database for the changes. With the better and more flexible options of system management this is possible with just a few clicks on the main database. With an integrated system this will then change all the warehouses that are set up in unison with the main office. The main office is the hub, if you will, of your operations. The hub is where all the major changes are made and all other warehouses adapt according to the settings of this warehouse.

Maximum efficiency is only possible through one solution; all warehouses that are under the same company need to be integrated. Above you have read the importance of integration; about how it can save time and money for a busy company but integration is also the key component to supreme organization. Integration is simply giving all the warehouses the same data access. While you will certainly take advantage of having one ‘main docking center’ you will be a stronger company when all warehouses have similar access to product lines and inventory.

Businesses can win out largely when using good warehouse software because software makes day to day operational tasks easier to do and much easier to manage.

Kelly Hunter is an a keen writer for http://www.warehouse-management-help.com about warehouse management with several years experience.

Bar Code Inventory Software

2007-12-14T22:53:00.001-08:00

All products are labeled with bar codes these days. Even the smallest retail items, like chocolates or pencils, have a unique bar code to identify them accurately. Bar codes have specific symbology that is defined in the height and width of the bars as well as the spacing between the bars. Each of these bars might represent numeric data, alphanumeric data or character data, depending on the type of symbology being used.

Each bar code has a start bar and an end bar to allow the scanner to read the data precisely. Some bar codes have another bar before the end bar, known as the checksum bar code. After the scanner calculates the sum, the same is verified with the value of the checksum bar code for accuracy. This ensures exact calculation with minimal errors.

Bar codes help during data collection, inventory tracking, and other asset tracking. They keep accurate records of all the items scanned, and so are a big help keeping track of inventory.

Specific bar code software called inventory software is the best option to keep track of inventory. This software is more complex than the data collection software that keeps records in databases. Inventory software can keep track of various items simultaneously, so that the software would be able to record the number of items in each category in a company. This software is particularly useful in warehouses and wholesale storage places wherein the company needs to have an idea of the number of items of each category owned at a specific time. The number of items being supplied to the retailers would get stored in the database by the software, to minimize the chance of errors.

Blood banks, pharmacies, and other manufacturers that mass-produce a variety of products would find this inventory software a boon. Inventory software, like the regular bar code data collection and tracking software, come with a number of utilities to make work easier. Report creation tools, databases, data entry tools, printing tools, and other functional software comes as part of the inventory software suite.

Bar code inventory software can be used with any scanner technology. It depends on the affordability and the customer’s preference.

Bar Code Software provides detailed information on Bar Code Software, Bar Code Scanner Software, Bar Code Printing Software, Free Bar Code Software and more. Bar Code Software is affiliated with Retail POS Software.

Manufacturing Inventory Software

2007-12-12T23:10:00.001-08:00

Manufacturing inventory software is an excellent solution for the tracking and controlling of inventory effectively. This provides better control on spending, reduces inventory costs and increases productivity. This software manages the inventory in ware house inventory, logistic inventory and stock room inventory. The manufacturing inventory software can manage inventory in process manufacturing with or without the tracking and the expiration dates. Supply chain management can be done using manufacturing inventory software. Inventory software can help in ISO certification and can meet other quality requirements. Advanced manufacturing software provides additional functionality in distribution using the global trade item number. This software also provides help during data conversion and customer and supplier listing.

Manufacturing enterprises face many problems such as increased inventory carrying cost, higher premium freight charges, decreased customer satisfaction, diminished asset utilization, decreased supplier performance etc. Many benefits can be achieved if the enterprise improves the management of its supply chain and inventory flow. The manufacturing inventory software provides the benefits such as inventory reductions throughout the networked supply chain, premium freight reduction, improved transportation utilization, increased service levels from suppliers, reduced administrative effort, improved quality levels etc.

Manufacturing inventory software combines several inventory based processes by gathering, compiling, analyzing, and storing essential inventory data in an intelligent manner. Some important features of inventory software include payable and receivable accounts, point of sale, sales order, purchase order, quotations, shipping, receiving and inventory data analysis. This program helps when there is more than one location storing inventory by tracking lot numbers, barcodes and serial numbers. Many companies set special days every year to gather inventory information. This software can increase the productivity of these inventory days and make sure that the recorded data remains accurate throughout the year. The manufacturing inventory software generates inventory reports and so the numbers are available at any time of the year.

Manufacturing Software provides detailed information on Manufacturing Software, Manufacturing Inventory Software, Manufacturing Business Software, Manufacturing Management Software and more. Manufacturing Software is affiliated with Free CAD Software.

Indian Livestock IndustryOpening up of the Indian economy to the world market,

2007-12-07T22:11:00.001-08:00

Indian Livestock IndustryOpening up of the Indian economy to the world market, in the era of liberalization, has certainly boosted the trade in several livestock products of the country. Successful negotiations of GATT have provided India an opportunity . Opening up of the Indian economy to the world market, in the era of liberalization, has certainly boosted the trade in several livestock products of the country. Successful negotiations of GATT have provided India an opportunity of competing on an equal footing in the world livestock trade.

Cattle population in India is increasingly viewed as just an economic resource to earn optimal returns, a transformation that's hugely influencing the conventional farm-life. Indian Livestock is considered to be in close proximity to human, as they're a vital component of the life system of Indians. Women provide livestock farming labor and more than 90% of work related to care of animals is rendered by womenfolk of the family. Handling more than 90% of the work related to caring of animals, women have always been a significant contributor to Indian livestock industry.

Cows, bullocks, buffaloes, donkeys, and mules are not only utility animals, they're also companions at work for toiling poor people who rear them along side their own dwelling. India has more than half of world Buffalo population and 15% of world Cattle population. In terms of sheep population, India ranks fifth after Australia, China, Iran and New Zealand. Most prominent types of Indian livestock industry include cows, buffaloes, camel, goats, sheep, pigs etc.

Major livestock production areas in India include Jammu, Rajasthan, Kashmir, Gujarat, Uttar Pradesh, and hilly regions of North and Eastern Himalayas. Also, these are the regions with maximum population of livestock.

Automation of agricultural operations in many parts of the country has resulted in pushing the use of cattle for plough to redundancy. There has been a decline in the availability of cattle fodder in the country, with harvester machines and short hybrid varieties of grain. Introduced during the white revolution, foreign breeds of cattle have taken over the indigenous breeds. However, the Indian Government in collaboration with western countries is planning to further develop the Indian Livestock Industry.

For further information about Indian Livestock Industry please read the report "Indian Livestock Industry- An Industry Analysis" published by RNCOS at http://www.rncos.com/Report/IM032.htm.

RNCOS is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our other reports, please visit us at http://www.rncos.com/Report.htm or email us at info@rncos.com
RNCOS offers complete e-publishing solutions for your business. We provide personalized world-class content development and management solutions that are qualitative and result-oriented

Geometry of the Stock Market Isnt So Good

2007-12-05T22:46:00.000-08:00

The slippery slope of the Bear market just hit a 90-degree angle. After coasting at a 45-degree angle, that at times looked like it would plateau, stocks are now moving decidedly down hill and picking up speed. Each bump in the road this year has shaken out
passengers, but now those thrown from the market will face even greater fiscal injury (not to mention mental, as they will be taking lumps that at times will amount to 90% losses). Yet, it will be difficult to hang on. That said, it might be impossible to jump on. The real scary part is that we dont have a road map for this kind of ride. The last time there was a two-year bear market was from January 1973 to December 1974. The last time there was a three-year bear market was from September 1939 to April 1942. It is fair to say that 95% of us know nothing of the two-year bear market, so this is un-chartered territory. Adventure
is fun when we get it via books and movies, but stock market investors dont have the fortitude and luck of an Indiana Jones, they close their eyes when the danger comes too close. However, now is the most important time ever to keep ones eyes open. It is also time to start looking deep in the history books for answers. This isnt the first time the stock market has plunged, and it isnt the first bubble that has had to totally deflate.

According to published reports from Ned Davis research, the average bear market lasts 418-days, and lops off 31% in stock market value. This data is focused exclusively on the Dow Jones industrial average. (Im not sure how the NASDAQ figures into historical
data. One thing is for sure, that index which worked so hard to shed its moniker as the "over the counter" market, has been so fractured that it may never recapture former glory. In fact, it seems like each session sees a former NASDAQ-listed company ringing the bell at the NYSE. It will be very tough to not only rebound, but to be the hottest index with many of their brightest stars no longer listed.) Officially, the Dows bear market began
in January of 2000; so it is a long way passed the typical time frame. That said, the index has been resilient, and at times was only a bear market in name. Despite the length of the current
bear market, it hasnt satisfied the historic norm in terms of value yielded. As it stands now, the Dow is off 22% from the all-time high. In many ways, the index has been a victim of its own success. It is hard to sell off when there is a migration from tech stocks into comfort stocks. As an avid tape watcher, I could see over and over again that the index wanted to pull back
and investors wanted to take some profits off the table. PG, MMM and JNJ were - and are - trading at the high-end of their respective valuation ranges. Yet, before the re-rotation could build a head of steam, there would be another bomb dropped in
tech/biotech land.

Now, it doesnt seem to matter for those that have successfully dodged the massacre by focusing on companys they know and understand. They are cashing in and putting the money on the sidelines. Save for the residue from the Great Crash in 1929, that saw the DJIA take 20-years to recover, the longest bear market has lasted 2.5 years. That is good news, (I guess). The stock market reclaimed 73% of its value within 9 months of the Great Crash (okay, it wasnt so great, but this is the "me" generation and it thinks we do everything better than those that came before us) of 1987. With this in mind, maybe the market will
move to a 180-degree angle and satisfy two elements of history. Matching the timeframe of the longest bear market, and at the same time yielding the average amount of ground that has been typical. Maybe a quickening climax to what has been cruel treatment could
be the answer. But, hold on to your hat, it means the Dow has to fall to 8177 before a floor can be put in. The last three trading sessions of the week saw the Dow off an average of 150-points, on Wednesday, Thursday and Friday. At that rate, we could see the
index bottom in 7-trading days. That would mean the worlds largest equity market, and the pride (we still love it deep down inside) of the nation could be ready to rebound after the fourth
of July.

Since 1991, Charles Paynes Wall Street Strategies has successfully
provided timely and effective equity advice to institutional
money managers, retail brokers and individual investors of all
types, and has thousands of subscribers from hundreds of brokerage
firms. http://www.wstreet.com Wall Street Strategies provides research
online, including enhanced services and communication tailored
to todays fast-moving markets.

Ten Common Investment Errors: Stocks, Bonds, & Management

2007-12-05T22:43:00.000-08:00

Investment mistakes happen for a multitude of reasons, including the fact that decisions are made under conditions of uncertainty that are irresponsibly downplayed by market gurus and institutional spokespersons. Losing money on an investment may not be the result of a mistake, and not all mistakes result in monetary losses. But errors occur when judgment is unduly influenced by emotions, when the basic principles of investing are misunderstood, and when misconceptions exist about how securities react to varying economic, political, and hysterical circumstances. Avoid these ten common errors to improve your performance:

1. Investment decisions should be made within a clearly defined Investment Plan. Investing is a goal-orientated activity that should include considerations of time, risk-tolerance, and future income... think about where you are going before you start moving in what may be the wrong direction. A well thought out plan will not need frequent adjustments. A well-managed plan will not be susceptible to the addition of trendy, speculations.

2. The distinction between Asset Allocation and Diversification is often clouded. Asset Allocation is the planned division of the portfolio between Equity and Income securities. Diversification is a risk minimization strategy used to assure that the size of individual portfolio positions does not become excessive in terms of various measurements. Neither are "hedges" against anything or Market Timing devices. Neither can be done with Mutual Funds or within a single Mutual Fund. Both are handled most easily using Cost Basis analysis as defined in the Working Capital Model.

3. Investors become bored with their Plan too quickly, change direction too frequently, and make drastic rather than gradual adjustments. Although investing is always referred to as "long term", it is rarely dealt with as such by investors who would be hard pressed to explain simple peak-to-peak analysis. Short-term Market Value movements are routinely compared with various un-portfolio related indices and averages to evaluate performance. There is no index that compares with your portfolio, and calendar divisions have no relationship whatever to market or interest rate cycles.

4. Investors tend to fall in love with securities that rise in price and forget to take profits, particularly when the company was once their employer. It's alarming how often accounting and other professionals refuse to fix these single-issue portfolios. Aside from the love issue, this becomes an unwilling-to-pay-the-taxes problem that often brings the unrealized gain to the Schedule D as a realized loss. Diversification rules, like Mother Nature, must not be messed with.

5. Investors often overdose on information, causing a constant state of "analysis paralysis". Such investors are likely to be confused and tend to become hindsightful and indecisive. Neither portends well for the portfolio. Compounding this issue is the inability to distinguish between research and sales materials... quite often the same document. A somewhat narrow focus on information that supports a logical and well-documented investment strategy will be more productive in the long run. But do avoid future predictors.

6. Investors are constantly in search of a short cut or gimmick that will provide instant success with minimum effort. Consequently, they initiate a feeding frenzy for every new, product and service that the Institutions produce. Their portfolios become a hodgepodge of Mutual Funds, iShares, Index Funds, Partnerships, Penny Stocks, Hedge Funds, Funds of Funds, Commodities, Options, etc. This obsession with Product underlines how Wall Street has made it impossible for financial professionals to survive without them. Remember: Consumers buy products; Investors select securities.

7. Investors just don't understand the nature of Interest Rate Sensitive Securities and can't deal appropriately with changes in Market Value... in either direction. Operationally, the income portion of a portfolio must be looked at separately from the growth portion. A simple assessment of bottom line Market Value for structural and/or directional decision-making is one of the most far-reaching errors that investors make. Fixed Income must not connote Fixed Value and most investors rarely experience the full benefit of this portion of their portfolio.

8. Many investors either ignore or discount the cyclical nature of the investment markets and wind up buying the most popular securities/sectors/funds at their highest ever prices. Illogically, they interpret a current trend in such areas as a new dynamic and tend to overdo their involvement. At the same time, they quickly abandon whatever their previous hot spot happened to be, not realizing that they are creating a Buy High, Sell Low cycle all their own.

9. Many investment errors will involve some form of unrealistic time horizon, or Apples to Oranges form of performance comparison. Somehow, somewhere, the get rich slowly path to investment success has become overgrown and abandoned. Successful portfolio development is rarely a straight up arrow and comparisons with dissimilar products, commodities, or strategies simply produce detours that speed progress away from original portfolio goals.

10. The "cheaper is better" mentality weakens decision making capabilities, leads investors to dangerous assumptions and short cuts that only appear to be effective. Do discount brokers seek "best execution"? Can new issue preferred stocks be purchased without cost? Is a no load fund a freebie? Is a WRAP Account individually managed? When cheap is an investor's primary concern, what he gets will generally be worth the price.

Compounding the problems that investors have managing their investment portfolios is the sideshowesque sensationalism that the media brings to the process. Investing has become a competitive event for service providers and investors alike. This development alone will lead many of you to the self-destructive decision making errors that are described above. Investing is a personal project where individual/family goals and objectives must dictate portfolio structure, management strategy, and performance evaluation techniques. Is it difficult to manage a portfolio in an environment that encourages instant gratification, supports all forms of "uncaveated" speculation, and that rewards short term and shortsighted reports, reactions, and achievements?

Yup, it sure is.

Steve Selengut http://www.sancoservices.com http://www.valuestockbuylistprogra m.com Professional Portfolio Management since 1979 Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy

Warehouse Control System by QC Software Profiled in Quality Digest

2007-12-03T01:28:00.001-08:00

The solutions provided by QC Software (www.qcsoftware.com) enables companies to streamline their warehouse operations with the lowest total cost of ownership in the industry ensuring increased corporate profitability. With a commitment to total customer satisfaction QC Software is the obvious choice for warehouse control, order management, and inventory management needs.

Manufacturing journalist Thomas R. Cutler discussed the configurability and quality at the distribution center in the recent issue of Quality Digest. Cutler profiled WCS leader QC Software.

According to Tom Verzi, vice-president of QC Software, a WCS firm based in Cincinnati, "Configurability allows users to make system changes quickly and easily to handle any physical changes in the warehouse. Many of our clients have expanded their warehouses. This could be adding conveyor, adding a sorter, or anything "physical". A quality WCS must be configurable; no hard coding is needed to "react" to physical changes within the warehouse." Configurability also allows for quick changes; how cartons are processed within the warehouse.

Emulation Tools Eliminate Bottlenecks in the Distribution Center Emulation tools allow for minimal live testing and help to identify bottlenecks in the process. This quasi-TOC (theory of constraints) is a built-in functionality in some WCS systems that recognized that testing would be required to provide the functionality of the system.

If problems occur during an emulation process quality trace messaging and debugging tools allow distributors to quickly and easily find the problem and fix it.

QC Software is the leading provider of Tier 1 warehouse control systems to the warehousing and distribution industries. Since 1996, QC Software, utilizing state of the art technology combined with extensive research, development, and rigorous testing, has developed the QC Enterprise suite of products. Designed to be modular in nature, easily configurable, and platform independent, this highly scalable solution satisfies the needs of any size warehouse.

Thomas A. Verzi Jr. VP Sales & Marketing TomVerzi@qcsoftware.com QC Software, Inc. www.qcsoftware.com (513) 469-1424

Professional Marketing Firm for the Manufacturing Community and Manufacturing Journalist to most manufacturing magazines

Warehouse Control Systems Leader QC Software Celebrates 10th Year

2007-11-29T21:03:00.000-08:00

QC Software is the leading provider of Tier 1 warehouse control systems to the warehousing and distribution industries. Vice-president Jerry List has 25 years experience in the material handling industry, designing and implementing complex control systems for a wide variety of material handling equipment. He has implemented control software solutions ranging from real-time machine controls through higher-level supervisory systems.

Since 1996, QC Software, utilizing state of the art technology combined with extensive research, development, and rigorous testing, has developed the QC Enterprise suite of products. Designed to be modular in nature, easily configurable, and platform independent, this highly scalable solution satisfies the needs of any size warehouse.

Jerry leads the business development efforts by developing the initial control strategy for proposals. He will work with the customer to produce the controls functional design document, and ensure continuity with the proposed system to develop solid product support. Additionally, Jerry is in charge of development of the requirements definition for external interfaces, the development of applicable test plans, and overall project coordination. He is also the customer service coordinator, ensuring complete customer service satisfaction from start to finish.

Thomas A. Verzi Jr.

VP Sales & Marketing

TomVerzi@qcsoftware.com

QC Software, Inc.

www.qcsoftware.com

(513) 469-1424

Software Warehouse Control Systems Leader QC Software Benefits with Verzi as VP of Sales & Marketing

2007-11-29T21:02:00.000-08:00

Thomas Verzi is VP of Sales & Marketing for WCS Software Leader QC Software which benefits from his vast experience

Thomas A. Verzi Jr. Vice President of Sales & Marketing, joined QC Software in March of 2006 and brings with him over 20 years of experience in the Enterprise Software industry with a successful track record in both software implementation, and sales and marketing. Tom is the former founder and CEO of VCS, Inc. and has also held management positions for numerous enterprise software companies spearheading the exponential growth in both exposure and sales. He has also been published numerous times as an expert in manufacturing and distribution arenas.

Tom is responsible for the management of all sales and marketing activities including corporate and product branding, and re-seller and integrator relationships.

Thomas A. Verzi Jr.

VP Sales & Marketing

TomVerzi@qcsoftware.com

QC Software, Inc.

www.qcsoftware.com

(513) 469-1424

Warehouse Control Systems QC Software Founder Rich Hite Celebrates Ten Years

2007-11-29T21:01:00.000-08:00

Rich Hite is the founder of QC Software. His vision began in 1996 with the development of QC Navigator? and has grown into the suite of products known today as QC Enterprise?. Rich oversees the direction and management of the company as well as being a major contributor to all project designs and remains in constant communication with the customer base.

Rich has over 35 years of software development experience and over 25 years in the material handling industry. His experiences also include the development of supervisory software for carousels, high speed sorting systems, and real time inventory management systems. He is proficient with UNIX, LINUX and Windows operating systems, Oracle and Sybase databases, in addition to C, JAVA, SQL, and XML software languages.

Thomas A. Verzi Jr.

VP Sales & Marketing

TomVerzi@qcsoftware.com

QC Software, Inc.

www.qcsoftware.com

(513) 469-1424

Tips on Sensible Stock Management Process to Save Money

2007-11-29T20:59:00.001-08:00

The rising stock market condition comparing to the previous few years have opened vast opportunities of investment and saving money by that. The open market, recent economic and financial policies have transformed the investment industry into a more flexible and approachable area for all class of people. Those with moderate earning can now think of buying and selling stocks and make it as an avenue for income.

This revolution has set trends for wide spread investments in stock trading by all types of people from various backgrounds. Sometimes, they do not even have enough idea how to handle a stock portfolio or a single stock. For this often they end up with huge loss. But if you can proceed sensibly with a prior knowledge on stock management and a little awareness on the basics on stock trade, you can save lots of money.

Here are few tips on sensible stock management process to save money -

- Before you start buying a stock analyze the market condition and the prospects of various industries including different companies. There are many risk factors that you always should be aware of. There can be market risk, credit risk, interest rate risk, inflation risk, currency risk, liquidity risk etc.

- Calculate the beta of the market. As you will know the beta value, you can easily apprehend the forthcoming changes in stock market.- Estimate the correlation. It will help you to presume the change of an index with the time series considered.
- Acknowledge the volatility of the stock. This is the ultimate help to determine the behavior of a stock.
- The return and risk ratio of a particular stock market can guide you on where to invest and how much to invest.
- Also calculate the value at risk to measure the risk of a single stock or a stock portfolio.
- To neutralize the risk, consider the option for hedging. Hedging is the complete process of analyzing and determining the necessary steps to be taken on a single stock.
- Consider the drawdown option to save money. A drawdown at the correct time can fetch you huge amount of money. Also the amount of drawdown affects on the profit value.
- There are different options of position sizing. There are fixed amount model, baseline model, equal leverage model, percent volatility model etc. Choose the most suitable one to save maximum amount of money.
- As you buy the stocks, determine along side how much money you are prepared to loose. Then set a stop-loss level to save money.
- Along with stop-loss level, calculate the cut-loss and take-profit levels. Also test the liquidity of the stock to determine the characteristics of your stock.
- Do not forget to raise the stop-loss level as your stock starts to get profit.
- Along with these basic financial and market analysis procedures, you must enhance your own personal character to suit with the changing stock market. You need to be very careful, organized, analytic, patient and a strong ability to take decision sharply and implement them completely.

By following these basic tips for sensible stock management process, you can save money and earn huge profits at once.

RateEmpire provides Refinance Mortgage and Home Equity Mortgage financial marketplace which connects consumers with multiple mortgage companies that compete for their business. For more information please visit Tips on Sensible Stock Management Process to save Money

Tips on Sensible Stock Management Process to Save Money

2007-11-29T20:59:00.000-08:00

Here are few tips on sensible stock management process to save money -

- Before you start buying a stock analyze the market condition and the prospects of various industries including different companies. There are many risk factors that you always should be aware of. There can be market risk, credit risk, interest rate risk, inflation risk, currency risk, liquidity risk etc.

- Calculate the beta of the market. As you will know the beta value, you can easily apprehend the forthcoming changes in stock market.- Estimate the correlation. It will help you to presume the change of an index with the time series considered.
- Acknowledge the volatility of the stock. This is the ultimate help to determine the behavior of a stock.
- The return and risk ratio of a particular stock market can guide you on where to invest and how much to invest.
- Also calculate the value at risk to measure the risk of a single stock or a stock portfolio.
- To neutralize the risk, consider the option for hedging. Hedging is the complete process of analyzing and determining the necessary steps to be taken on a single stock.
- Consider the drawdown option to save money. A drawdown at the correct time can fetch you huge amount of money. Also the amount of drawdown affects on the profit value.
- There are different options of position sizing. There are fixed amount model, baseline model, equal leverage model, percent volatility model etc. Choose the most suitable one to save maximum amount of money.
- As you buy the stocks, determine along side how much money you are prepared to loose. Then set a stop-loss level to save money.
- Along with stop-loss level, calculate the cut-loss and take-profit levels. Also test the liquidity of the stock to determine the characteristics of your stock.
- Do not forget to raise the stop-loss level as your stock starts to get profit.
- Along with these basic financial and market analysis procedures, you must enhance your own personal character to suit with the changing stock market. You need to be very careful, organized, analytic, patient and a strong ability to take decision sharply and implement them completely.

By following these basic tips for sensible stock management process, you can save money and earn huge profits at once.