Assignment

On

INVENTORY MANAGEMENT PRACTICE OF BUSINESS FIRMS IN

BANGLADESH

Submitted By: GROUP D

NAME ID
Mohammad Sayem 1803710109554

Sakib Azad 1803710109571

Omar Faruk Raihan 1803710109568

Faisal Bin Alam 1803710109576

Minhazul Islam Farhad 1803710109545

Submitted To:

Afroza Sultana
Assistant Professor

Discipline: Finance

Department Of Business Administration

Premier University Chattogram

Submission Date: 15 OCT 2022

 TABLE OF CONTENTS

INTRODUCTION

LITERATURE REVIEW

CURRENT PRACTICE

CHALLENGES

RECOMMENDATIONS

CONCLUSION

REFERENCE
 INTRODUCTION

Inventory Management Refers To The Process Of Ordering, Storing, Using, And

Selling A Company's Inventory. This Includes The Management Of Raw Materials,
Components, And Finished Products, As Well As Warehousing And Processing Of
Such Items.

 Inventory Management Is The Entire Process Of Managing Inventories From

Raw Materials To Finished Products.
 Inventory Management Tries To Efficiently Streamline Inventories To Avoid
Both Gluts And Shortages.
 Two Major Methods For Inventory Management Are Just-In-Time (JIT) And
Materials Requirement Planning (MRP).

Why Is Inventory Management Important?

One Of The Most Valuable Assets Of A Company Is Its Inventory. In Various Industries, Such
As Retail, Food Services, And Manufacturing, A Lack Of Inventory Can Have Detrimental
Effects. Aside From Being A Liability, Inventory Can Also Be Considered A Risk. It Can Be
Prone To Theft, Damage, And Spoilage. Having A Large Inventory Can Also Lead To A
Reduction In Sales.

Regardless Of The Size Of Your Company, Having A Proper Inventory Management System Is
Very Important For Any Business. It Can Help You Keep Track Of All Your Supplies And
Determine The Exact Prices. It Can Also Help You Manage Sudden Changes In Demand
Without Sacrificing Customer Experience Or Product Quality. This Is Especially Important For
Brands Looking To Become A More Customer-Centric Organization.

Balancing The Risks Of Overstocks And Shortages Is An Especially Challenging Process For
Companies With Complex Supply Chains. A Company's Inventory Is Typically A Current Asset
That It Plans To Sell Within A Year. It Must Be Measured And Counted Regularly To Be
Considered A Current Asset.

As Noted, Inventory Is An Idle Resource For Later Use. An Idleness Is Always Associated With
A Cost, Maintaining Inventories Is Expensive In Terms Of The Working Capital Tied Up In
Them, Either Directly Or Indirectly Through Alternative Uses Of The Tied-Up Funds. In
Addition, The Process Of Ordering Goods, Whether From An External Supplier Or From The
Firm’s Own Production, Is Expensive Due To The Costs Arising From Checking The Actual
Levels Of Stock, Contacting Suppliers, Checking Their Products, And The Applicable Costs Of
Credit Facilities, Shipping, And Forwarding. A Parallel Type Of Cost, The Set-Up Cost, Arises
In Production-By-Lot Processes, Where Production Is Discontinuous And Thus The Equipment
Used, Being Not Strictly Specialized, Needs Adjustment And Retooling For Every Production
Run. Uncertainty Has Also Its Cost. Uncertainly Regarding Demand Expectations And Time
Lags Between Ordering And Receiving, Or Starting A Run And Finishing It, Results In
Overages And Shortages. To These Conflicting Costs Must Be Added The Cost Of Designing
And Handling Inventory Systems. In Some Circles Inventories Are Thought Of As A Sign Of
Wealth, Even Excess Inventories In Relation To The Magnitude Of Production And Distribution
Function Are Considered Advantageous. On The Other Hand, The Wise Businessmen Place
More Emphasis On Having Working Capital On The Form Of Cash And Securities. In Recent
Years A Greater Emphasis Has Been Placed On Having The Means Of Purchasing Materials
Than Having The Materials Themselves. Excessive Inventories Have Been The Reasons For
Death Of Many A Business And Very High Inventory Levels Has Tipped The Scale In Our
Economy. Finished Product After Packaging Are First Stored And Sent To The Market As The
Need Arises Or Orders Are Received. Also The Raw Materials Needed For The Finished
Product Cannot Be Directly Fed To The Production Department From The Market. These Have
To Be Stored First After Procurement. These Things Put Together Give An Idea Of Storing
These Items. This Process Of Storing Is Called Inventory. The Fundamental Reason For
Carrying Inventories Is That Are:

Physically Impossible For Each Stock Item To Arrive Exactly Where And When It Is Needed
And

Economically Impractical For Each Stock Item To Arrive Exactly Where And When It Is
Needed.

Even If It Were Physically Possible For A Supplier To Deliver Raw Materials Every Few Hours,
For Example, It Could Still Be Prohibitively Expensive. The Manufacturer Must Therefore Keep
Extra Supplies Of Raw Material Inventory To Use When They Are Needed In The Conversion
Process. The Other Reasons For Keeping Inventories Include:

A. Buffer Stock: Buffer Stock Can Be Defined As The Inventory Against Stockouts From
Uncertain Demand During Lead-Time. When Demand Is Highly Variable, Some Protection Is
Needed Against The Chances Of High Stock-Out Costs. In Such Cases Inventory Can Be Used
As A Buffer. Likewise This Also Buffers Against Highly Varied Lead-Time (Time Between
Ordering And Receiving Goods).

B. Decoupling: Decoupling Means Breaking Down Operations Apart So That One Operation’s
Supply Is Separated From Another’s Supply. Through Decoupling By Procuring Inventories
Separately, Breakdowns, Material Shortages, Or Other Production Fluctuations At One Stage Of
Operations Do Not Cause Any Disruption In Later Stages Of Operation. Also Through
Decoupling One Organizational Unit Can Schedule Its Operations Independently. Decoupling
Through In-Process Inventory Is Common In Automobile Industry, Where, Engine Build-Up,
Seat Assembly, Body Making, Etc. Are Done Separately (In Many Cases In Distant Locations).

C. Production Smoothing: Products Can Be Built During Slack Demand Periods For Using In
Peak Demand Periods. This Will Reduce High Costs Of Production Rate, Work Force Level
Changes, Set-Up Costs, Etc. Inventories Can Help In This Production Leveling.

D. Materials Handling: In Some Operations Parts Can Be Accumulated And Stocked In

Container (Tote) Boxes Or Baskets And Transported Hand-Jack Dollies (Wheelbarrow) Or
Forklift Trucks Much More Economically Than Can Be Carried Manually. This Is Particularly
True Of Intermittent Systems, Since They Involve Less Automation Of Material Handling Than
Do Continuous systems. In Continuous Manufacturing, Automated Materials Handling Systems
Are Designed To Reduce Overall Handling Costs, Resulting In Less Work-In-Process.

E. Bulk Purchase: Bulk Purchase Gives Quantity Discount. This Also Gives A Cost Advantage
Of Materials Inventories.

LITERATURE REVIEW

Factors Influencing Effective Inventory Management

planning For Inventory Management

Inventory Planning And Control Are Crucial In Most Organizations, Including Manufacturing,
Wholesale, Grocery Stores, Retail businesses, The Auto Industry, Military, And Government. In
Traditional Manufacturing Companies, This Ratio Is About 40% Of capital Investments.
Therefore, It Is Not Surprising That Inventory Planning Is One Of The Oldest Fields Of Study In
Production, Manufacturing, And Operation Systems ( Behnam M. 2014).

Inventory Record Keeping System

Inventory Record System Is Most Important Part Of The Any Kind Of Organizations. Also, It
Has Been Helped To Reduce Stock outs, Inventory Frauds, Obsolescence Etc. Thomas &
Michael, (2000) Said Inventory Should Be Recorded, Manually Or Usingan Automated
Management Information System. Also, Accurate Records Are A Necessity To Effective
Inventory Management. According To Burton (1989) Cited By (Mwangi, 2013) Inventory
Record Inaccuracy Has Had A Significant Impact On decreasing Levels Of Customer Service,
Increasing Costs, And Decreasing Productivity.
Procurement

Procurement Is The Process Of Obtaining Products And Services From Suppliers. Procurement
And Inventory Management Are critical To Production Companies As Well As To Service
Companies, As Spending In Procurement Is Often One Of The Biggest parts Of The Company’s
Budget. This Means Knowledge About Strategies, Concepts, Process, Methods And Technical
System In the Areas Of Procurement And Inventory Management (

Push pakumara, W.M.P.G.R. 2018).

Staff Characteristics

Storehouse Staff Is Responsible For Receiving And Storing Inventory, Recording Inventory
Information, Security System Of inventory Etc. Therefore, Staff Characteristics Are Most
Important Factor Of Controlling Store Room Activities. According Tothomas & Michael, (2000)
People In Stores Are Responsible For The Distribution Of Inventory To All Storage Or Using
Location sand They Are Also Responsible For The Physical Security And Safekeeping Of
Inventory At All Stores’ Places And For All storekeeping Activities, Including Inventory
Receiving, Put-Away, And Inventory Picking And Distribution. According Tojames, (2013)
Qualified Staff That Is Capable And Skilled Will Help The Organization To Achieve Its Goals
And Objectives By being Efficient And Effectively.

Storage System

Each Of Inventory Items Has Been Enough Space In Storehouse And It Has Handled By
Suitable System. Kumar & Suresh,(2006) Said Store Management Involves Physical Control Of
Inventories, Preservation Of Stores, Minimization Of obsolescence And Damage Though Timely
Disposal And Efficient Handling, Maintenance Of Stores Records, Proper Location And
stocking. According To Ogbo, Victoria, & Ukpere, (2014) Inventory Managers Have To Stock-
Up When Required And Utilize available Storage Space Resourcefully, So That Available
Storage Space Is Not Exceeded. Cases Of Stock Outs Of Materials Are As A Result Of Poor
Documentation, Poor Monitoring Of Inventory Levels And Lack Of Control Of Stock Movement
Within The stores (Wauna, S. & Obwogi J., 2015).Storage Systems And Organizations
Performance Are Closely Related. The Benefits Achieved Through Properly established Storage
Systems Are Reduced Storage Costs, Minimum Deterioration, Avoid Misuse Of Space Hence
Enable The organization To Achieve Its Organizations Efficiency (Odhiambo, O. B. & Janet, J.
2016)
Effective Inventory Management

waste Reduction As A Result Of Effective Inventory Management

The Production And Management Of Waste Is A Strategic Issue For All Companies, Since It
Has Organizational Implications, Particularly On Profitability Of The Companies. Ameer &
Othman (2012) Observed The Relationship Between Waste Reduction and Economic-Financial
Performance In A Population Of 100 Companies. They Identified Better Results For These
Firms(Growth Of Sales, ROA, Pre-Tax Profits And Operational Cash Flows).

The Efficient Utilization Of Machines While Producing In Reduced WIP Inventories, Reduced
Throughput Times And reduction In Lead Times Leads To Competitive Manufacturing And
Thus It Will Lead To Increase The Organizational Performance(Gupta, S.K. Et At. 2012).

Timely Delivery Of Products And Services As A Result Of Effective Inventory Management

The Dominant Theme Of The Operations Management Literature Over The Past Century Has
Been To Improve Operational performance. This Can Be Achieved By Reducing The Lead Time
From Raw Materials To Finished Goods (Faster Cycle Times),Reducing The Amount Of Waste
In The Process (Managing The Input And Output Quality), And By Reducing The Quantity Of
physical Units Held By The Firm (Working With Suppliers And Customers) (Beshkooh, M. Et
At. 2013).

Ability To Meet Shareholders’ Objectives As A Result Of Effective Inventory Management

Inventory Management Plays A Vital Role In Every Organization Since Ineffective Inventory
System Will Result In Loss Of customers, Sales And Ultimately Profits. An Effective Inventory
Management Is Able To Create More Sales For The Company which Directly Affects The
Performance Of The Company In Terms Of Profitability And Therefore, Increase Shareholders
Wealth.(Syed, B. Et At. 2016).Incredible Cost Savings And Possible Revenue Can Be Realized
Through Better Management Of Inventory (Anichebe & Agu, 2013; Kakeeto, F. Et At. 2017). It
Is Confirmed That A Company Could Cut Down On Its Total Expenses By At Least Twopercent
Through Better Inventory Management And Distribution Of Finished Goods (Kimaiyo & Ochiri,
2014).Huson & Nanda (1995) Showed That The Improvement Of Inventory Turnover By A
Sample Of 55 Firms Led To An increase In Earnings Per Share. Deloof (2003) Disclosed A
Significant Negative Relation Between Gross Operating Income Andthe Number Of Inventories
Days For A Sample Of Non-Financial Belgian Firms During The Period 1992-1996, Suggesting
That managers Can Create Value For Their Shareholders By Reducing The Number Of
Inventories Days To A Reasonable Minimum.
Literature Gaps To Be Filled

According To The Above-Mentioned Literature Review, It Is Observed That There Are Various
Factors Influencing The Effective inventory Management System. Overstocking, Poor Supplier
Relationships And Poor Utilization Of Information Technology leads To Poor Management Of
Inventory And Influence The Performance Of The Production Function. It Is Also Seen That,
Allthe Literature Works Have Been Done On Manufacturing Sectors, Garments Sector, Private
Sectors, Public Sectors, Education sectors And Others In International Level. But, No Work, So
Far, Our Knowledge Goes; Has Been Conducted In Bangladeshi textile Companies. Against This
Backdrop, The Study Sought To Fill The Present Gap, As To Know The Factors
Influencingeffective Inventory Management Of The Textile Companies In Bangladesh.

Conceptual Framework

The Conceptual Framework Displays Connection Between The Independent Variables To The
Dependent Variable (Kombo Et Al.2006). According To Kothari (2008) A Dependent Variable
Relies On The Other Variable While An Independent Variable Is The predictor Variable. The
Following Figure (Figure-1) Discloses The Proposed Model To Describe The Present Study.
CURRENT PRACTICE

Showing How Bangladeshi Companies Working For Their Inventory Management:

1. Acme Digitek

Acme Inventory Management System Is Used To Make Recording, Processing, Storage,

Retrieval And Management Of Information For The Inventory And Store Department. This Will
Ultimately Result In Easier And Smoother Operations. The Implementation Of The Software
Should Enable The Department To Provide Better Services To Its Officers And Employees. This
System Facilitates Multi Store Record Keeping In Any Organization, Where The Responsibility
Of Each Store Is Assigned To Some Section. The System Provides Facility To:

Features

Define Various Stores And The Employees Assigned To Each Store.

Maintain Item Categories.

Maintain Item For Each Store.

Maintain The Details Of All Suppliers/Vendors.

Maintain Opening Stock For Individual Store.

Purchase Order Follow Up.

Record The Supply Of Items Against PO Vide Delivery Challan/ Delivery Challan Cum
Invoice.

Provision For Tagging Delivery Challans Against Invoices.

Approval Of Invoices And Generation Of CB.

Record The Indents Received From Various Sections In Stores.

Issue Of Items Against Indents.

Return Of Items.

Intra Store Transfers.

Stock Accounting Reports And MIS Reports.

 2. Ha-Meem Group

Duties/Responsibilities:
• Responsible For Receiving, Storing & Issuing Raw Materials And Finished Goods, Ensure
Timely Dispatch, Inventory Control & Management, Monitoring Loading & Unloading,
Maintaining Records Etc.
• Maintains A Safe And Healthy Work Environment By Establishing, Following, And Enforcing
Standards And In Compliance With The Company Policies.
• Maintain Quality Standards Of Finished Product.
• Ensures Smooth Delivery Of Product For The Sales Organization
• Maintain & Update Software (Sap) To Produce Report Regularly.
• Maintain Stock Register & Prepare Stock Reports On Regular Basis.
• Responsible For Quality Checking/Inspection/Certification Of Received Goods.
• Overseeing Inventory Control And Processing Orders.
• Manage Distribution Process Effectively & Efficiently.
• Any Other Responsibilities As And When Assigned By The Management.

3. Abul Khair Group

Duties/Responsibilities:
Look After Store Materials (Store Keeping & Proper Corresponding & Record Maintain).
All Kinds Of Store Materials Receiving, Issuing, Cycle Counting (Abc Analysis) & Prepare
Daily Statement.
Daily Entry Of Store Requisition (Sr) & Material Receiving Report (Mrr) On The Bin
Card/Kardex Sheet & Stock Ledger. Prepared Store Purchase Requisition (Spr).
Monthly Stock Checking Statement & Continued Half Yearly/Yearly Inventory Through
Physical Counting By Sku To Sku. Other Works As And When Assigned By The Store In-
Charge
4. Masco Industries Limited

1.Maintaining Multiple Warehouse Operations Function Including Shipment And

Logistics Arrangement, Monitoring Proper Execution Stock In And Out Flow Movement
As Well As Maintaining A Proper Storage And Inventory System Management As Per
Policy And Procedure.
2. To Maintain Strong Inter-Departmental Communication To Ensure Effective Co-
Ordination With Related Departments.
3. Communicate With C&F Agents & Shipping Lines
4. Managing A Team Of Support Staff & Ensuring The Warehouse Policies &
Procedures Are Followed.
5. Managing A Discipline Receive And Release Procedure Matching Of Receiving And
Delivery Documentations.
6. Plan & Organize Strategic Arrangement Of Managing Warehouse Space..
7. Maintaining Accessories & Fabrics Accounts Buyer Wise & Day To Day Report To
Concern Department.
8. Able To Coach, Motivate& Discipline Staff.
09. Maintaining Warehouse Administration Like Monitoring Stock Register, Daily
Inventory Report Accuracy And Key Record Of Staffs Performance/Activities
Comparably.
10. Maintain 6’s
11. Maintain C-Tpat Area & Bonded Warehouse.

5. Epyllion Group
1. Maintaining Warehouse Operations Function Including Shipment And Logistics
Arrangement, Monitoring Proper Execution Stock In And Out Flow Movement As Well
As Maintaining A Proper Storage And Inventory System Management As Per Policy And
Procedure.
2. To Maintain Strong Inter-Departmental Communication To Ensure Effective Co-
Ordination With Related Departments.
3. Communicate With C&F Agents & Shipping Lines
4. Managing A Team Of Support Staff & Ensuring The Warehouse Policies &
Procedures Are Followed.
5. Managing A Discipline Receive And Release Procedure Matching Of Receiving And
Delivery Documentations.
6. Plan & Organize Strategic Arrangement Of Managing Warehouse Space..
7. Maintaining Accessories & Fabrics Accounts Buyer Wise & Day To Day Report To
Concern Department.
8. Able To Coach, Motivate& Discipline Staff.
 09. Maintaining Warehouse Administration Like Monitoring Stock Register, Daily
Inventory Report Accuracy And Key Record Of Staffs Performance/Activities
Comparably.
10. Maintain 6’s
11. Maintain C-Tpat Area & Bonded Warehouse
12. Working With World Renowned Software Sap.

CHALLENGES

1. Inconsistent Tracking:
Using Manual Inventory Tracking Procedures Across Different Software And
Spreadsheets Is Time-Consuming, Redundant And Vulnerable To Errors. Even Small
Businesses Can Benefit From A Centralized Inventory Tracking System That Includes
Accounting Features.

2. Warehouse Efficiency:
Inventory Management Controls At The Warehouse Is Labor-Intensive And Involves
Several Steps, Including Receiving And Putaway, Picking, Packing And Shipping. The
Challenge Is To Perform All These Tasks In The Most Efficient Way Possible.

3. Inaccurate Data:
You Need To Know, At Any Given Moment, Exactly What Inventory You Have. Gone
Are The Days When Inventory Could Be Counted Once A Year With An All-Hands-On-
Deck Approach.

4. Changing Demand:
Customer Demand Is Constantly Shifting. Keeping Too Much Could Result In Obsolete
Inventory You’re Unable To Sell, While Keeping Too Little Could Leave You Unable To
Fulfill Customer Orders. Order Strategies For Core Items, As Well As Technology To
Create And Execute An Inventory Plan, Can Help Compensate For Changing Demand.

5. Limited Visibility:
When Your Inventory Is Hard To Identify Or Locate In The Warehouse, It Leads To
Incomplete, Inaccurate Or Delayed Shipments. Receiving And Finding The Right Stock
Is Vital To Efficient Warehouse Operations And Positive Customer Experiences.
6. Manual Documentation:
Managing Inventory With Paperwork And Manual Processes Is Tedious And Not Secure.
And It Doesn’t Easily Scale Across Multiple Warehouses With Lots Of Stock.

7. Problem Stock:
Perishable And Fragile Stock Need Specialized Plans For Care And Storage. And High-
Value Inventory Needs Specific Loss-Prevention Strategies And Inventory Controls.

8. Supply Chain Complexity:

Global Supply Chains Shift Daily, Placing A Burden On Your Inventory Planning And
Management Operations. The Manufacturers And Wholesale Distributors That Dictate
When, Where And How Your Inventory Ships Require Flexibility And Offer
Unpredictable Lead Times.

9. Managing Warehouse Space:

Efficiently Managing Space Is An Intimidating Task. Planning And Designing
Warehouse Spaces With Inventory Management Platforms Helps You Better Control The
Timing Of New Stock Deliveries. It Can Account For Important Factors, Such As
Available Space. Read More About The Differences Between Warehouse Management
And Inventory Management.

10. Insufficient Order Management:

One Of The Most Common Challenges To Sound Inventory Management Is Preventing
The Overselling Of Products And Running Out Of Inventory. Using Historical And
Seasonal Data Trends Can Help You Accurately Predict Customer Orders.

11. Increasing Competition:

Globalized Supply Chains Are Subject To Unpredictable Economic Shifts And Market
Forces That Impact The Competition For Raw Materials. Small Businesses Are
Sometimes Faced With Choosing Between Competing For High-Demand Materials Or
Holding Enough Inventory To Control Costs.

12. Evolving Packaging:

Compostable Packaging—Or Removing Packaging All Together—To Reduce Waste
Presents New Obstacles For Warehouse Design And Storage. It May Even Mean New
Equipment Or Shorter Shelf Life For Some Items.
13. Expanding Product Portfolios:
Many Online Retail Strategies Remove The Need For Large Warehouse Distribution
Centers. These Strategies Make It Easier To Expand Inventory And Diversify Product
Portfolios, But Demand Technology And Resources For Ordering, Shipping And
Tracking.

14. Overstocking:
Keeping Too Much Stock On Hand Can Be As Problematic As Having Too Little.
Overstock Impacts Business Cash Flow And Leads To Inventory-Related Problems, Such
As Storage And Loss.

15. Inventory Loss:

The Loss Of Inventory Due To Spoilage, Damage Or Theft Can Be A Supply Chain
Problem. It Requires Identifying, Tracking And Measuring Problem Areas.

16. Poor Production Planning:

Production Planning Is Vital For Avoiding Delayed Manufacturing And Cost Overruns.
If Not Done Well, It Can Impact Sales Forecasts And Project Scheduling.

17. Lack Of Expertise:

It Can Be Tough To Find Skilled Inventory Managers Who Are Adept At The Latest
Technology And Can Improve Inventory Strategy. Simply Upgrading Your Inventory
Management Platform With A Host Of Features Isn’t Enough. You Need Capable
Management.

18. Poor Communication:

Communication And Collaboration Are Key. When Departments Are Apathetic About
Sharing Information, It Makes Identifying Inventory Trends And Finding Ways To
Improve Much More Difficult.

19. Inefficient Processes:

Low-Tech, Manual Inventory Management Procedures Don’t Seem Like A Daunting
Challenge When Inventory Is Small And There’s Only One Warehouse Location To
Manage. But As Sales Volume Increases And Inventory Expands, Inefficient, Labor-
Intensive And Low-Tech Standard Operating Procedures Are Difficult To Scale.
 20. Inadequate Software:
To Scale Inventory Management Software To Support Complex Logistics, It Needs To
Integrate With Your Existing Business Process Platforms. The Difficult Task Is Choosing
From Hundreds Of Inventory Management Solutions And Mastering A Host Of Features
That Require Training And Ongoing Support.

RECOMMENDATIONS

How We Will Face This Problem, Describing-

1. Centralized Tracking:
Consider Upgrading To Tracking Software That Provides Automated Features For Re-
Ordering And Procurement. Inventory Management Platforms Provide Centralized,
Cloud-Based Databases For Accurate, Automatic Inventory Updates And Real-Time
Data Backup.

2. Transparent Performance:
Measure And Report Warehouse Performance Metrics Like Inventory Turnover,
Customer Satisfaction And Order Processing Speed To Overcome Warehouse
Inefficiencies. Share This Data With Employees And Suppliers.

3. Stock Auditing:
Frequent Stock Auditing Processes, Like Daily Cycle Counting, Reduce Human Error
And Provide More Accurate, Up-To-Date Inventory Data For Managing Cash Flow.
Organize Audits By Category And Cycle Count Smaller Inventory Samples On A
Predictable Schedule For More Accurate Financial Data.

4. Demand Forecasting:
Some Inventory Management Platforms Include Demand Forecasting Tools. This Feature
Integrates With Accounting And Sales Data To Help You Predict Demand And Schedule
Orders Based On Shifting Customer Preferences, Material Availability Or Seasonal
Trends.
5. Add Imagery:
Add Images With Product Descriptions In Your Inventory Database To Improve
Purchasing And Receiving Processes, Enhance Accuracy And Prevent Misplaced
Inventory.

6. Go Paperless:
Give Employees The Right Inventory Tools For The Job. They Need Software To
Replace Manual Inventory Documentation, And Paperless Transactions For Invoices And
Purchase Orders.

7. Preventive Control:
Implement Stock Control Systems To Manage Problem Inventory, Such As Perishable
Stock, Fragile Equipment Or Obsolete Materials. Perform Regular Preventive
Maintenance On Machinery And Equipment Stock In Storage If Required By The
Manufacturer. Catalog Data On Problem Stock Location, Cost And Quantity To Monitor
Shelf Life And Prevent Waste.

8. Measure Service Levels:

Monitor And Track Supplier Data, Such As Shipment Errors, Damaged Or Defective
Products And Missed Delivery Appointments. Measure Your Supplier’s Performance
To Find And Fix Supply Chain Disruptions, Reduce Complexity And Streamline
Logistics.

9. Optimize Space:
Use Inventory Management Systems With Warehouse Management Features To
Optimize Storage Space And Inventory Flow. Categorize Inventory Storage Down To
Shelf, Bin And Compartment, And Automate Order Picking, Packing And Shipping
Workflows.

10. Automate Reorders:

Backordered Inventory Delays Production And Creates Poor Customer Experiences. Use
Inventory Management Software To Set Automatic Reorder Points Based On Preset
Stock Levels And Current Availability To Avoid Overselling.

11. Safety Stock:

Maintain Safety Stock To Offset Supply Chain Disruptions And Help Manage Increased
Lead Times Due To Shifting International Competition For Raw Materials. Proper
Inventory Planning Helps Operations Adapt To Dynamic Global Supply Chains.
12. Classify Inventory:
Create Inventory Classifications To Manage Changing Trends, Such As Packaging
Initiatives To Reduce Plastic Waste. Categorize Stock By Packaging Type, Dimensions
And Product. Use This Information To Control Shipping Costs And Storage Location
Better.

13. Multi-Location Warehousing:

Use Multi-Location Warehouse Management Features To Track And Control Expanding
Inventories. Take Advantage Of Receiving And Put-Away Schedules With Automated
Inventory Tracking Alerts And Scheduling Features That Keep Tabs On Warehouse
Location And In-Transit Inventory.

14. Leverage Lead Times:

Take Lead Times Into Account When Placing Orders For High-Demand Stock. Track
And Manage Your High-Demand Inventory Using Cycle Counting Data To Set
Automatic Reorder Points And Average Lead Time To Preventing Stockouts.

15. Reduce Human Error:

Use Inventory Control Processes Like Blind Receiving With Barcodes And Mobile
Scanners To Prevent Human Error, Inventory Manipulation And Shrinkage Due To Theft
Or Negligence.

16. Plan Demand:

Use An Inventory Management System With Advanced Demand Forecasting And
Reporting Features To Prioritize Your Top Inventory. Take Into Account The
Availability Of The Top 20% Of Inventory That Generates 80% Of Your Customer
Demand. To Learn More About Inventory Planning And Demand Forecasting, Read
Our Essential Guide To Inventory Planning.

17. Subcontract Expertise:

Consider Outsourcing To An Expert In Inventory Management. Contract In-Person
Training And Provide Online Support To Help Employees Follow Best Practices For
Working With Technical Inventory Management Software Features.

18. Dashboard Collaboration:

Introduce Dashboards With Simple Interfaces That Show Real-Time Inventory Data.
Having Everything On One Screen Helps Remove Communication Barriers Across
Accounting, Sales And Warehouse Operations.
 19. Productivity Tools:
All The Information You Need About Your Inventory Can Be In Your Pocket. With
Mobile Solutions And Cloud-Based Software, You Can Control Inventory And Improve
Your Warehouse Productivity From Anywhere In The World.

20. Update Platforms:

Upgrading To A Cloud-Based Inventory Management Platform Doesn’t Just Give All
The Latest Features. You Get To Take Advantage Of The Vendor’s Expertise And
Training While It’s Being Implemented.

CONCLUSION

The Study Wanted To Examine The Impact Of Factors Influencing The Effective Inventory
Management In The Textile Industries of Bangladesh. Five Factors Namely, Planning For
Inventory Management (PL), Record Keeping (RK), Procurement (PR),Staff Characteristics
(SC) And Storage System (SS) Have Been Used For Justifying The Effective Inventory
Management. It Is found That Planning For Inventory Management (PL), Staff Characteristics
(SC) And Storage System (SS) Have Positively And significantly Influenced The Effective
Inventory Management (EIM).
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https://www.investopedia.com/terms/i/inventory-management.asp

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http://acmedigitek.com/inventory_management_system

https://www.hameemgroup.net/

https://www.crystalgroup.com/

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