Managing Inventories

IndonesiaCore® offers ready-to-use and high quality Information systems softwares such as IT Inventory Systems for Customs, and training for users to manage and report inventory of each products: raw materials, work in process, finished goods, capital goods, office equipments, and wastes.

Inventory Management Challenges

Pressure on Inventory Levels

[Upward Pressure on Inventory Levels] There are continuing upward pressure on inventory levels, despite the great focus on supply chain management improvements in most companies, according to annual CFO Magazine Working Capital Report. One major factor that contribute significantly to the upward pressure on inventory levels is the increase many companies have seen in raw material prices. If a company cannot raise its own prices in step, as many have not been able to do, it has the effect of increasing the inventory level metric, as the cost of raw materials and work-in-process inventories goes up relative to sales. There has also been some forward buying of raw materials to lock in costs of commodities expected to rise.

Why Inventory Management Important ?

Companies tend to manage inventories efficiently because of several key reasons. First, working capital tied up in inventory can’t be used for more productive purposes that could generate higher returns or growth for the company. Second, inventory is a component of the company’s overall capital investment. Those firms that can generate a given level of profit with a lower level of investment in inventory will generate higher cash flows and better return on invested capital. Third, higher levels of inventory tend to lead to more problems with write-offs of slow, excess and obsolete inventories (SLOBs), which can hammer a company’s profit line, especially in today’s environment of rapid product lifecycles.

Solution for Managing Inventories

IndonesiaCore® provides a specific solution for companies to manage inventories. For bonded zone and bonded warehouse companies there is iCore IT Inventory System software bundled with training packages, quick setups and data migration, and supervisions. There is also iKite IT Inventory System software that developed specifically for KITE companies.

Start Inventory Projections

[Inventory Projections] Start with some decent projections of how much supply you’ll need and when you’ll need it. The best gauge is what you’ve sold in the past. If you’ve sold 100 items per month for the past 12 months, chances are that you’ll need 100 this month.

Establish Standard Procedure of Data Entry

Communicate the needs of valid data entry with all departments and try to assign roles for each departments in the process of inventory data entry. Don’t forget to validate the processes of data entry so that there will be no data redundancies.

Implement Information System and Prepare Backup Plan

Use reliable Information System package that includes software, training sessions, and migration solutions so that company can adapt and migrate from manual inventory recordings to fully capable online information system successfully. Don’t forget to prepare backup plan, your backup plan can be as simple as saving critical data to a removable drive or saving critical data to online server.