California Inventory Control : Exxtraexpress.com

California Inventory Control

Inventory control is a major issue for all businesses. Tracking and managing inventory is a daunting task at best; one which can require a lot of time and cost. To help alleviate some of the issues of inventory control, you can very easily and inexpensively implement and utilize a bar code system. In California, inventory control also is a major issue for most businesses – big or small. A strong inventory, both deep and broad, can certainly be a competitive advantage. Smart business executives are careful to limit the amount of capital they are willing to commit to this critical asset. In California, inventory levels are managed in many ways.

Inventory and accounts receivable account for approximately 80% of total assets in most businesses and 100% of manageable assets, so getting a handle on both will provide any business with much needed capital to grow. Some of the management ideas used in California to optimize inventory and minimize out-of-stocks will follow below:

• In California, inventory control is enforced by businesses establishing clear-cut goals for buyers; make sure buyers understand how their jobs are measured. Inventory turns by category, gross margin, and out-of-stocks (or incidences of backorders) are good places to start keeping score.

• Conduct regular cycle counts -- at least monthly. Establish a counting calendar that specifies the days of the month to count specific products.

• Discuss with your software vendor the effect on inventory counts when processing inventory receipts on products that are showing negative quantities. Ask your software vendor for advice on procedures to avoid compounding problems.

• Make sure that your inventory receiver is not just whoever happens to be available at the time a new shipment arrives. Assign accountability to one or more specific individuals to receive inventory.

• Adopt a policy that calls for the drivers of incoming delivery vehicles to drop off their shipping papers at the office or at the guard gate before proceeding to the yard or warehouse. Instruct receiving personnel to use the purchase order as the receiving document.

• Instruct buyers to walk the yard and warehouse on a daily basis to gain firsthand insight into inventory levels, product quality and the way specific products are being stacked or stored.

• Educate employees involved with inventory management as to the dollars and cents effect inventory accuracy has on the company's profitability.

• Clearly label stacks, racks, and bins to reduce mistakes, especially by seasonal or part-time employees.

• Document all inventory procedures.

• In California, inventory control is also enhanced by performing a spot check to test the accuracy of annual physical inventory counts.

• Periodically inspect what you expect from personnel assigned to all inventory-related tasks.

In California, inventory control requires periodic review so the personnel on the front lines won't develop bad habits. Take the above list of recommended inventory procedures and spot check how well your people are following the rules you have established. If you have some aspects of inventory control in your company that are not documented, assign a responsible employee who is good at designing systems to create the documentation.

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