Inventory Management Of Commercial Enterprise

Such a business process as inventory management is a vital component of any enterprise trading sphere. This is due primarily to the fact that excess, excessive commodity-supply requires both increased costs for warehousing services, and that is much more important, significant funding.

The funds frozen in cash balances can and should make a profit – so says the vast majority of financial directors and business owners of commercial businesses. However, their optimization – competent management of inventory – not an easy task, and requires a sufficient qualification of employees of the financial department, thought-out and well-coordinated work of the entire personnel of the warehouse.

Inventory Management Of Commercial Enterprise

Often, managers of successful high-margin business are not immediately notice a “weak spot” in the enterprise controlled by them. Imperfection whether the accounting system becomes the cause or a simple unwillingness of top management and owners to see and admit the obvious – in the end does not matter. What is important is that at a certain stage of development of the business inventory management becomes the task without which the successful achievement of the objectives of a trading company could be in jeopardy.

Especially notable situation with excess inventory gets in those companies that receive goods under the concluded contracts with a significant time lag. For example, businesses that sell goods imported. For a long time, which takes its conditions customs clearance procedure (the so-called “customs clearance), significantly increases the delivery of goods for resale. In addition, even more significant contribution to the increase in this parameter makes the period of delivery of cargo by sea from foreign countries (e.g., China).

What could be the solutions to the aforesaid problems (inventory optimization of commercial enterprise)?

It seems that the work in this area can be divided into two levels. On one of them (called “micro-level”) can talk about issues related to the optimization of the order processing procedures all involved employees from its wholesale predpriyatiya- “Rabat” to the staff of the warehouse. In this publication, we will not deal with problems of the micro-level – options for their solutions seem to be quite obvious. We consider in detail the way in which you can optimize the trade balances of the enterprise sphere of trade at the macro level – using the mechanisms of the budget management system.

In solving problems of this area, we have to organize inventory management so that planned orders to suppliers accounted for shipment to customers. In other words, the procurement plan should be formed on the basis of sales budget and trade balances. In addition, when you create must be taken into account a number of additional factors, including, for example, the required margin for the insurance company to strategic commodities.

Obviously, the procedure of forming the considered purchasing budget cannot be detached – it must be built into the operating system in the enterprise budget management. He has become one of the operating budgets of the company, which will be formed on the basis of the budget sales. Hereinafter the sales budget we mean the revenue part of the budget of income and expenses of the enterprise, i.e. the planned shipment of the products to end customers.