Inventory managementInventory ControlOn the so-called "inventory control", many people will interpret it as a "storage management", which is actually a big distortion.The traditional narrow view, mainly for warehouse inventory control of materials for inventory, data processing, storage, distribution, etc., through the implementation of anti-corrosion, temperature and humidity control means, to make the custody of the physical inventory to maintain optimum purposes. This is just a form of inventory control, or can be defined as the physical inventory control. How, then, from a broad perspective to understand inventory control? Inventory control should be related to the company's financial and operational objectives, in particular operating cash flow by optimizing the entire demand and supply chain management processes (DSCM), a reasonable set of ERP control strategy, and supported by appropriate information processing tools, tools to achieved in ensuring the timely delivery of the premise, as far as possible to reduce inventory levels, reducing inventory and obsolescence, the risk of devaluation. In this sense, the physical inventory control to achieve financial goals is just a means to control the entire inventory or just a necessary part; from the perspective of organizational functions, physical inventory control, warehouse management is mainly the responsibility of The broad inventory control is the demand and supply chain management, and the whole company's responsibility.Why until now many people's understanding of inventory control, limited physical inventory control? The following two reasons can not be ignored:First, our enterprises do not attach importance to inventory control. Especially those who benefit relatively good business, as long as there is money on the few people to consider the problem of inventory turnover. Inventory control is simply interpreted as warehouse management, unless the time to spend money, it may have been to see the inventory problem, and see the results are often very simple procurement to buy more, or did not do warehouse departments .Second, ERP misleading. Invoicing software is simple audacity to call it ERP, companies on their so-called ERP can reduce the number of inventory, inventory control, seems to rely on their small software can get. Even as SAP, BAAN ERP world, the field ofthese big boys, but also their simple modules inside the warehouse management functionality is defined as "inventory management" or "inventory control." This makes the already not quite understand what our inventory control, but not sure what is inventory control.In fact, from the perspective of broadly understood, inventory control, shouldinclude the following:First, the fundamental purpose of inventory control. We know that the so-called world-class manufacturing, two key assessment indicators (KPI) is, customer satisfaction and inventory turns, inventory turns and this is actually the fundamental objective of inventory control.Second, inventory control means. Increase inventory turns, relying solely on the so-called physical inventory control is not enough, it should be the demand and supply chain management process flow of this large output, and this big warehouse management processes in addition to including this link, the more important The section also includes: forecasting and order processing, production planning and control, materials planning and purchasing control, inventory planning and forecasting in itself, as well as finished products, raw materials, distribution and delivery of the strategy, and even customs management processes.And with the demand and supply chain management processes throughout the process, it is the information flow and capital flow management. In other words, inventory itself is across the entire demand and supply management processes in all aspects of inventory control in order to achieve the fundamental purpose, it must control all aspects of inventory, rather than just manage the physical inventory at hand.Third, inventory control, organizational structure and assessment.Since inventory control is the demand and supply chain management processes, output, inventory control to achieve the fundamental purpose of this process must be compatible with a rational organizational structure. Until now, we can see that many companies have only one purchasing department, purchasing department following pipe warehouse. This is far short of inventory control requirements. From the demand and supply chain management process analysis, we know that purchasing and warehouse management is the executive arm of the typical, and inventory control should focus on prevention, the executive branch is very difficult to "prevent inventory" for the simple reason that they assessment indicatorsin large part to ensure supply (production, customer). How the actual situation, a reasonable demand and supply chain management processes, and thus set the corresponding rational organizational structure and is a question many of our enterprisesto exploreThe role of inventory controlInventory management is an important part of business management. In the production and operation activities, inventory management must ensure that both the production plant for raw materials, spare parts demand, but also directly affect the purchasing, sales of share, sales activities. To make an inventory of corporate liquidity, accelerate cash flow, the security of supply under the premise of minimizing Yaku funds, directly affects the operational efficiency. Ensure the production and operation needs of the premise, so keep inventories at a reasonable level; dynamic inventory control, timely, appropriate proposed order to avoid over storage or out of stock; reduce inventory footprint, lower total cost of inventory; control stock funds used to accelerate cash flow.Problems arising from excessive inventory: increased warehouse space andinventory storage costs, thereby increasing product costs; take a lot of liquidity, resultingin sluggish capital, not only increased the burden of payment of interest, etc., would affect the time value of money and opportunity income; finished products and raw materials caused by physical loss and intangible losses; a large number of enterprise resource idle, affecting their rational allocation and optimization; cover the production, operation of the whole process of the various contradictions and problems, is not conducive to improve the management level.Inventory is too small the resulting problems: service levels caused a decline in the profit impact of marketing and corporate reputation; production system caused by inadequate supply of raw materials or other materials, affecting the normal production process; to shorten lead times, increase the number of orders, so order (production) costs; affect the balance of production and assembly of complete sets.NotesInventory management should particularly consider the following two questions:First, according to sales plans, according to the planned production of the goods circulated in the market, we should consider where, how much storage.Second, starting from the level of service and economic benefits to determine howto ensure inventories and supplementary questions.The two problems with the inventory in the logistics process functions.In general, the inventory function:(1)to prevent interrupted. Received orders to shorten the delivery of goods fromthe time in order to ensure quality service, at the same time to prevent out of stock.(2)to ensure proper inventory levels, saving inventory costs.(3)to reduce logistics costs. Supplement with the appropriate time interval compatible with the reasonable demand of the cargo in order to reduce logistics costs, eliminate or avoid sales fluctuations.(4)ensure the production planning, smooth to eliminate or avoid sales fluctuations.(5)display function.(6)reserve. Mass storage when the price falls, reduce losses, to respond to disasters and other contingencies.About the warehouse (inventory) on what the question, we must consider the number and location. If the distribution center, it should be possible according to customer needs, set at an appropriate place; if it is stored in central places to minimize the complementary principle to the distribution centers, there is no place certain requirements. When the stock base is established, will have to take into account are stored in various locations in what commodities.库存管理库存控制在谈到所谓“库存控制”的时候，很多人将其理解为“仓储管理”，这实际上是个很大的曲解。
