Welcome to B2B Source
Follow us:

Inventory Process Analysis

 An inventory process analysis studies in detail the procedures or steps a company use to co-ordinate the movement of products through their business operations. There are many different types of inventory which varies across different sectors. For example, manufacturing and production companies deal mainly with raw materials and eventually finished goods whilst retailers may just deal with the finished product ready for end use. These two types of business are at different stages of the supply chain but can have an inventory process which is very similar.

Inventory process analysis involves looking at the broad overview of the inventory procedures that a company uses to track inventory on their accounting ledger. The most common type of systems are periodic and perpetual. Periodic involves starting with an opening inventory balance and updating information every quarter as opposed to updating after each transaction. This is a common feature in perpetual inventory systems which update the general ledger after each sale or adjustment to the company’s inventory account. It is important to analyse which system will work for your business as perpetual inventory systems require more work but provide a higher degree of accuracy for managing the inventory.

inventory process analysis

When it comes to analysing the inventory, companies should select each process according to the type of stock or the nature of the company. A simpler inventory process should be adopted by companies who produce and sell homogeneous items for wholesale or batches. Have quality inspection in mind for these types of products as many companies sample by selecting a random item in the inventory to inspect.

Another important aspect which should not be ignored when conducting inventory process analysis is the time aspect. The amount of time needed to maintain an inventory often needs to be analysed as some companies do not have the workforce to maintain accurate inventory information.

The best way to make sure your process is well optimised to your business is to call on the expertise of supply chain consultants. Gideon Hillman are one such company who offer in depth inventory process analysis to help your business get the best out of your inventory. Please visit www.hillman-consulting.co.uk to find out about how Gideon Hillman can aid your inventory management. 

⇐ Back to Consultancy

Other stories

Weatherproof Enclosures: What you need

Weatherproof enclosures perfect for indoor and outdoor areas. How well do they work, what can you expect from each IP rating? GRP weather enclosures When it comes to buying weatherproof enclosures, you’ll want to take two things into...

Read more...

Stay safe with a ACK4 chain actuator

Keeping your premises and your staff safe at work is incredibly important, especially if you are working in an environment that is deemed as dangerous or high risk - such as a manufacturing warehouse. Your workforce is the most important part of...

Read more...

Using your Education database

Public databases are a very good tool for general market research when marketing to schools, however, in depth and specific education databases are invaluable. It is important to use a database which will best enables you access to as much detail as...

Read more...