5 Important Roles of Inventory Management that Must be Paid Attention to

Inventory Management is a company asset management system that consists of various things, from raw materials to finished goods. The existence of a good system in management will help companies prepare needs in order to meet consumer needs.

Specifically, inventory management has an important role that must be paid attention to. What are the roles? Check out 5 of the following!

1. Selection of Person in Charge of Inventory

The first part that plays an important role in a company's inventory system, namely the person in charge. This is caused by the importance of the items that exist so that the company must choose a person in charge who is not only reliable but also understands the details of inventory.

It is because the company is obliged to receive a complete and periodic inventory report related to matters such as the amount of inventory available and inventory in and out to the valuation of product inventory.

2. Application of SKU Codes and Barcodes for Goods

One of the right steps to make it easier for companies to track inventory is by applying the Stock Keeping Unit (SKU) and Barcode codes for each item. This method is useful to ensure all existing stocks are recorded properly.

3. Monitoring The Level of Inventory

Another thing that plays an important role in the inventory management process is monitoring the level of inventory that exists. If each company involves this process periodically, it can be ascertained that the company will avoid depreciation of inventory.

Set a minimum limit of stock that must be there every time so that when the stock is close to that limit, the company must reorder. Avoid storing too much stock because it can lead to the abandonment of existing supplies. As a result, it is good if every company conducts forecasting to determine the right amount of stock.

4. Automation of Inventory Management

With the process of automation of inventory management in each company, it is not that the production chain will be much more effective. It is because of checking inventory with a manual system will take a lot of time.

The presence of software will help industrial management do many things quickly, such as monitoring inventory, controlling procurement, shortening order time to suppliers, and making complete inventory reports.

5. Warehouse Security Optimization

Last but not least important thing to note is warehouse security optimization. Increasing the security of the place where the company keeps its inventory will ensure that the entire production chain is protected from undesirable things.

The method can be started by installing CCTV cameras in every corner of the warehouse and existing corridors. Do not forget to install the security code on the warehouse door and leave all the keys to the warehouse person in charge.

In Indonesia, one of the industrial areas that has the most advanced security with good Inventory Management is in Karawang New Industry City (KNIC), West Java. This area is also the right location for property investment in the industry with a variety of factories and warehouses and high technology.

There are various reasons why KNIC is the right choice for the manufacturing industry. Some of them are strategic locations near the toll road, Jabodetabek LRT, train stations, airports, and ports. This strategic location also facilitates the delivery of goods everywhere.

KNIC itself is basically a world-class integrated industrial city so that the presence of world-class infrastructure is in this place. In addition, to support the performance of manufacturing companies, KNIC is also present to help accelerate regional economic growth and present a Multiplier Effect that is useful for socio-economic development in Karawang and surrounding areas.

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