Inventory management and inventory control are both vital to improved performance in manufacturing, wholesale distribution and retail operations. Unfortunately many companies confuse the two, resulting in excess inventory and higher operations costs.
Inventory management is the process of making sure the right materials are in the right place at the right time at the lowest possible cost. Good inventory management leads to high levels of customer service, high inventory turns, good use of assets and increased profitability.
Inventory control is the process of knowing how much inventory you have and where it is. Good control results in smoother operations and improved purchasing productivity because knowing what you have (and where it is) saves time from ordering materials you don’t need to order, and from running around looking for parts.
Without good inventory control, inventory management becomes very difficult. Without good inventory management, customer service and profitability suffer. Both are vital to breakthrough operations performance.
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