![]() ![]() Depending upon the nature of inventory, number of transactions and the value of items, cycle count can be carried on periodically or perpetually. An inventory audit essentially comprises of auditing the books stocks and transactions and matching physical stocks with the book stock.Ĭycle counts: Cycle count refers to the process of counting inventory items available in physical locations. Inventory control is exercised through inventory audits and cycle counts. Therefore it becomes essential to control inventory and have visibility through the pipeline including transit inventory. The number of transactions and handling that it goes through from the point of origin to the point of destination is numerous. Thirdly the inventory always moves through supply chain and goes through various transactions at various places. This necessitates inventory control mechanism to be implemented to ensure the book stocks and the physical stocks match at all times. While on the other hand, inventory is recognizable by the book stock and the system stocks maintained. On one level it is physical and involves physical transactions and movement of inventory. Inventory is has two different dimensions to it. ![]() Inventory control is also required as an operational process requirement. ![]() These factors necessitate inventory maintenance mechanisms to be devised to ensure inventory control. Thirdly inventory may be with the company or may be under the custody of a third party logistics provider.Secondly inventory can be in one location or spread over many locations.First of all inventory of raw materials as well as finished goods can run in thousands of SKU varieties.Inventory control assumes significance on account of many factors. Accordingly any asset needs to be managed to ensure it is maintained properly and is stored in secure environment to avoid pilferage, loss or thefts etc. Any inventory of Raw materials, finished goods as well as Intermediate in process inventory has an economic value and is considered an asset in the books of the company. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |