Purposes_of_Inventory_Management_System

KB Corporation PROPOSAL For Inventory Management System Table of Contents 1 Overview 2 Problem Situations Proposed and Purpose 3 Record methods 3.1 Recommendation for the forms design principles are: 3.2 Computer assisted-retrieval system (CAR) 3.3 Data Retrieval methods by Information Technologies 3.4 Policies for record storage 4 Organizing the record and the classification system. 5 Implementation. 6 Conclusion: Strategically Managing Inventory for Future Growth 1. Overview As the company are expecting to establish another 20 shops in the next 2 years, we have realized how important for the document system for different department. And our products are almost imported from Europe and Asia. We cannot keep to using the manual record for the document record system. This document will explain the requirement for management, inventory, provisioning, customer support, sales support, and book-to-bank systems. Where possible recommendations are given to understand and plan for interconnection, correlation, and data warehousing requirements. Emphasis is given to ensuring all databases will have a capability to provide input to decision support systems needed by both senior management, as well as operational levels of the business. 2 . Problem Situations Our company current operation has shown that the inventory document record is obvious inefficiency. In the aspect of inventory control, more and more errors were found repeatedly at the accounting department. Accounting department finds it difficult to collect complete inventory records and stock levels for their monthly financial reporting purpose. i. No in-out stock records; ii. Incomplete entry of returned goods; iii. Duplicated receipts which mixed with debit noted and invoices incorrectly. Proposed and Purpose Purposes The inventory record is important to ensure quality control in the business to handle transaction. A good inventory control system will alter retailer when it is time to order. Ensure that have enough supplies of the in demand items. Reduce or eliminate financial losses coming from different aspects of the business. Improve customer service; provide valuable information about store profit. The record system is essential i. Reduction of error ii. For continued monitoring of quantity and quality of stocks iii. Data retrieval methods by Information Technologies iv. Media for record storage, for use as a management tools. 3. Record method 3.1 Recommendation for the forms design principles are: i. Easy data entry to the form, whether it is a paper-based form, or an electronic form, the design should be easy to suit the intended uses, when the form is entered by hand, machine, or both. ii. Easy extraction of data from the form for variable data, entered on the form by the user should stand out from the static data. The form should be easy to read and understand. Content should be in a logical sequence. Avoid unnecessary data and use of captions. iii. A clear grouping of rows and columns will help towards this principle, Varying the type and strength of lines can reduce the tendency to err as a result of line, fpr electronic forms, the design usually incorporate fool-proof features, its can be reduction of error. iv. Cost effective design, it should be designed with the consideration to minimize the costs of paper and printing process. Variation in copy in multiple-form sets can be eliminated by printing routing instructions on every copy. Always try to simplify to standard forms. Distinguishing destinations by using different colors of paper instead of printing them with different inks, cut down the number of copies by circulating the same copy to multi-destinations. When multiple copies are really necessary, think of using other reproduction processes instead of printing them by the printer. 3.2 Computer assisted-retrieval system (CAR) Documents are captured by high speed microfilmers. A computer is used to establish, store and maintain the description and location (microfilm address) of a document impage located on microfilm,. The computer is used subsequently to search for the required information via Cathode Ray Tubes which will display the description, the particular roll of microfilm and the microfilm address where the required image is stored. The required roll of microfilm is then selected and inserted into a microfilm retrieval terminal which will display the required document image. 3.3 Data Retrieval methods by Information Technologies i. Scanners(with OCR, Optical Character Recognition ii. Microphone + Computer software iii. Digital devices (Capture image or information from Digital Cameras or digital view cams and process them with “MPEG” technologies for storage and organizing purposes) iv. RFID Radio Frequency ID system – a new way to bear and transmit information with a tiny computer chip v. Bar Code sensor - An easy way to dispense with problems associated with typing is to use an inventory management system that incorporates a bar coding system that generates tracking numbers and product identifiers automatically, and helps to automate the tracking process. A bar coding system requires both hardware and special software. At minimum you’ll need to purchase a bar code reader, which attaches to the computer, a bar code printer, to produce labels for inventory, labels for the printer, and software that handles both the reading and production of labels. The basic concepts are still the same – products are uniquely identified when they come into the center, and from then on, all their movements are tracked. But because the computer handles the assignment, reading and recording of tracking and serial numbers, there’s less room for error. Some of these kinds of systems are known as Point of Sale systems, because they work like a checkout counter in a store. In this case items are checked out of storage, or into testing, or checked out to a client. A common point of sale system that can be adapted to a warehouse and workshop is the Pastel accounting package. 3.4 Policies for record storage The setting up a policy for proper record storage can clarify the ambiguity of record management in a company. Usually this was done by the Office Administrator who draft the detailed procedures that describe the following areas A. Where: consider the actual need of the user, records could be stored in one of the following locations: A centralized location of the company, in the department who need the records, in the individual user’s location. B. Who can remove them: clear guidelines should be laid as to who can remove the files from the shelves / office / building C. Accessible / classified: should establish a standardized procedure for user to access the records. The guidelines should determine the level of security D. Maintenance of records: it should be set in a way so that files and records would be updated, delete, backup and so on at regular intervals 4 Organizing the record and the classification system. Records or Forms are usually centralized in the document control division of the Administration department. or by the Organization and Method department. In brief, the following steps are common to most of the form control: • Centralization • Functional design • Standardization • Evaluation and maintenance of forms 5 Implementation a. Enter each product into the inventory management system along with the product count from the audit and the most recent price paid for the product b. Identify every product in our inventory and the mot recent price paid for the product so that the inventory software management system can perform inventory valuation calculations c. Train staff to use how inventory is added or removed from the software system. d. Perform a full audit on all products in stock e. Print inventory reports and double check the entry to ensure we have entered all the figures correctly into the inventory management system 6 Conclusion: Strategically Managing Inventory for Future Growth Many distributors may be merely struggling to survive in today’s harsh economic climate. But the actions they take today to sharpen their operational performance and streamline their processes will lay the groundwork for profitable growth as the economy recovers. Given the weight of inventories on today’s balance sheets and their tendency to absorb limited working capital, taking action now is critical to optimize stocks in a way that is consistent with the demands of one’s customers. This is a difficult dilemma to confront, but is inevitable and unavoidable. Distributors now have an opportunity to differentiate themselves and drive performance to new levels by investing in advanced inventory management. As the experiences of some of the best-in class firms mentioned in this paper suggest, they can expect to increase inventory visibility while driving down inventory costs. Unsurprisingly, this has enabled these firms to further strengthen customer relationships, bargain for better terms with their suppliers, and generate more profitable growth.