Inventory Management is defined as an inventory management system that is usually applied in various fields, including manufacturing industry. Good management of inventory will prevent the business from losing money. How do you do inventory management so that the inventory in the manufacturing plant remains effective? Watch out the 6 of the following!
1. Determine the Minimum Inventory Limit
The first thing that must be applied to make goods management being better is to determine the minimum inventory limit. When the product has been reduced and reaches the minimum, place an order immediately to avoid shortages.
For the next order process, it is better to do it when the inventory is at the minimum. This limit also tends to be different according to the product offered.
2. Predicting Consumer Demand
In addition to the minimum limit, a company needs to predict consumer demand. The reason is that these two things are closely interrelated because not to let the company save a lot of stock in the warehouse which is actually wasted.
Conversely, companies also need to ensure that consumers' needs for products offered are always fulfilled. Some factors that should be known in estimating consumer demand are market trends, previous year's sales data, economic conditions, and business growth rates.
3. Applying the FIFO Principle
One of the principles that should be applied by the manufacturing industries is First in First Out (FIFO). This principle means that the stock that first enters and becomes the longest stock must be sold first, while the latest stock is the last.
This method is important for the effectiveness of each product so that it is not easily damaged and the company can avoid losses. Products that are always stored on the back will make the product obsolete faster so that the selling power decreases.
4. ABC Method Analysis
In the manufacturing industry, not all products are the same because some of them need more care than others. To analyze existing products, companies can use ABC method.
Method A aims to assess high-value products with low sales frequency, B for sufficient value products with sufficient sales frequency, and C for low-value products but has high sales frequency.
5. Establishing good relationships with suppliers
Although it seems trivial, establishing good relations with suppliers should not be ignored. It is because the availability of a company's products depends on the availability of materials from suppliers. Good relationships will help in material negotiation if needed.
6. Evaluating and Checking Inventory
Finally, in the process of managing inventory at a manufacturing plant, the company is obliged to periodically evaluate and check inventory. This is to prevent the risk of problems that may occur.
In Indonesia, one of the industrial estates that has an effective manufacturing plant management system is in Karawang New Industry City (KNIC), West Java. This area is 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.