Avoid a stock out of inventory – an industrial challenge
Feb 5, 2010 Inventory Management software
"A horse, a horse, my kingdom for a horse," said King Richard III in Shakespeare's well known drama – and may well wonder what relevance does manufacturing for the world! A closer examination of this event allows us to draw a series analogies with an out of stock situation of manufacture.
- There is a desperate need for an element that appears to be now available
- the value of the item has dramatically increased the party wishing to
- the location of a replacement item becomes fundamental
- and any delay in obtaining the item may be fatal
Analogies hard, but maybe there have been many cases where a manufacturing operation has sunk because of the purchasing policies of the poor and the lack of inventory control. One thing to have the ability to manufacture and assemble the desired order. It is quite another matter to ensure that all components and materials are available in hand and can be easily located when needed. This brings us to the realms of the purchasing process and inventory management, both of which are key components in the manufacturing process.
In a previous article in this series, entitled "Estimate – A parameter key benefit for manufacturers, it was noted that proper assessment and costing of a job is crucial to a profitable result. However, no matter how accurate is the cost estimate is of limited value once construction begins, if the material and supplies needed for the job are not available when needed. The lack of a component or the inability to locate his whereabouts often substantially the impact of workflow through the shop. Usually this can result in one or all of the following scenarios
- urgent request and deliver the item
- deflect or delay human resources to locate the item
- delays in a workstation with a full partially finished
- reconfiguration of machines to take on another task
- rescheduling of other activities in the workshop to accommodate the delay
- the reallocation of labor
Inevitable delays and accidents sometimes occur, but these must be the exception not the rule. If there is a high incidence of emergency order or production plant seems to be in a frequent state of confusion, looking for components or consumption, then it is almost certain that there are some serious problems that must be addressed.
Urgent request is a classic symptom of a system of procurement under stress. Whenever a properly managed inventory must be very few urgent orders placed. Inventory management requires interfaces well with the estimation process so that the requirements for a specific job are known before an appointment becomes a firm order. Once the production order is confirmed and timely component ordering supplies should continue in a measure.
Appropriate inventory management also should include
- maintaining proper stock levels and components based on well-developed max / min figures
- timely marketing orders to avoid stock outs
- relevant receipts so that items recorded delivery
- a well-defined storage location numbering system
- and a reserve capacity of quarantines values for specific stock items
In the past, many of these requirements are difficult to manage and track, particularly for small and medium-sized manufacturing companies. With limited human resources available in a small organization of the manual systems are prone to error and the opportunity is often suspected that the staff tried to keep up with the paper trail and workflow.But today, with the ubiquitous and cost-efficient desktop computer smaller organizations can now compete on an equal footing with large, complex organizations, always select the right software.
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Management Restaurant Inventory Wisely
Feb 1, 2010 Inventory Management software
Inventory management is a necessity in all businesses, but more and more restaurants are realizing that they can be the difference between success and failure.
Inventory management is the process of controlling costs and waste through the effective use of the hand in the product. Combine this with a reliable forecasting model and restaurants can realize a dramatic reduction in your monthly expenses.
Every company faces the sad reality that employees steal from their employer. An effective inventory management combined with secure storage and locking of the procedures will result in less loss due to employee theft.
In the restaurant industry that there are mainly three types of inventory management systems: POS Integration Manual or limited, mixed or partial integration and fully integrated.
Manual or limited integration
Manual inventory management refers to the process of physically counting each item every week for restaurant costs. This system is more suited to small, independently owned operators who purchase fewer items and maintain record keeping easier.
Once all the counting is completed, then the data can be transferred to the accounting system of the restaurant. If no errors, the inventory is complete. If there are errors but the whole inventory process must start again to find the errors.
POS mixed
Mixed Point of Sale (POS) or partial integration, the system combines the restaurant outlets with manual inventory procedures. Point of sale refers to the system used to order food and drinks as well as resolution of all controls.
Each time an item is ordered through the outlet is removed from the current inventory. When items are counted during the inventory on-hand value must match the inventory listed in point of sale. However, if there are discrepancies between the two lists, one physical inventory count should begin.
This method of inventory management is more effective than the limited system, and when combined with strong loss prevention procedures may result in large cost savings per month.
Fully integrated
A fully integrated inventory management implemented three different elements in your system. Combine the system with a restaurant POS system / ordering shipping, and an electronic system for physical inventory. This is the most sophisticated and accurate of the three systems and results in the fewest monthly losses and general product and benefits.
Some suppliers of restaurants offering major restaurants with an online ordering system. This system is integrated with the restaurant point of sale and can accurately predict what is in inventory, and forecasting the size of the next supply order.
Once a week or even every month there is a physical inventory conducted with portable electronic bar code readers and electronic scales. All data are automatically sent to both the supplier and the restaurant.
Some are so sophisticated that incorporate the breakdowns of the recipe for ingredients and then calculate the inventory. This type of system allows you to save money in the long term, but also help you run a restaurant business more agile and efficient.
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