Project Inventory Management System is designed to meet the dictates of the marketplace and support the company's strategic plan. The many changes in market demand, new opportunities due to worldwide marketing, global sourcing of materials, and new manufacturing technology, means many companies need to change their Inventory Management approach and change the process for Inventory Control.

Despite the many changes that companies go through, the basic principles of Inventory Management and Inventory Control remain the same. Some of the new approaches and techniques are wrapped in new terminology, but the underlying principles for accomplishing good Inventory Management and Inventory activities have not changed.

The Inventory Management system or the Inventory Control Process provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities, and communicate with customers. Inventory Management and the activities of Inventory Control do not make decisions or manage operations; they provide the information to Managers who make more accurate and timely decisions to manage their operations.

The basic building blocks for the Inventory Management system and Inventory Control activities are: 

• Ø Sales Forecasting or Demand Management
• Ø Sales and Operations Planning
• Ø Production Planning
• Ø Material Requirements Planning
• Ø Inventory Reduction

The emphases on each area will vary depending on the company and how it operates, and what requirements are placed on it due to market demands. Each of the areas above will need to be addressed in some form or another to have a successful program of Inventory Management or Inventory Control System.

Project Inventory Management System is a discipline that encompasses the principles, concepts and techniques for determining what to order, when to order and how much to order. The right amount of inventory involves the balance between what is required to service your customers and what is financially practical.

The main principles of Inventory Management System are as follows:

Analyze current inventory levels and usage
Using data including existing inventory level, costs and part numbers, IMS will evaluate all inventories - raw material, work-in-process, and finished goods.

Evaluate utilization of inventory management software
If your company has implemented manufacturing software, IMEC will help you determine how well the inventory control module of your software is being utilized. If the software is a valuable resource that is being overlooked or underutilized, IMEC will help establish procedures by which to fully use its data collection and reporting capabilities.

Develop an ideal inventory management system
Based on the data you provide, IMEC will identify inventory categories, suggest order quantities, safety stock levels, minimum and maximum levels, turnover, replenishment policies and a hypothetical inventory value based on the replenishment policies.

Identify items that are not at acceptable levels
We will compare your existing inventory levels against the ideal levels to identify problem areas requiring attention.

Establish and maintain an appropriate inventory management system
IMEC will help you establish the necessary controls and procedures to correct unacceptable levels of inventory and maintain a healthy inventory management system in the future.