General Problems

1. Employee Errors * Employee errors can cause inaccuracies in the inventory records, which can cause purchasing to fail to purchase materials or to acquire an excessive amount of inventory. The employees responsible for transacting materials or work orders must have the training necessary to update the inventory system accurately. In addition, employees responsible for inventory management, such as cycle counters and inventory management specialists, must receive training in the specific inventory system used in the organization.
Stock Outs * Stock outs are shortages in inventory that can result from inaccurate records or a poor forecasting in the inventory system. The purchasing department must have accurate trigger points that determine when to make material purchases. Stock outs can result in product delays to customers. * Sponsored Links * Mobile Apps for Business
Align Your Mobility Strategy. Make Real-Time Informed Decisions! www.sap.com/Philippines/mobile Excess Inventory * Excess inventory results in additional costs to the organization in storage costs and funds tied up in unused stock. When companies do not use inventory quickly after purchase, the business begins to lose money on the materials. In the event any of the material is defective, it can take much longer for the organization to discover the problem.
Misplaced Inventory * An inventory system must not only store quantity information, but it must also provide details of its location in the building. Misplaced inventory results in wasted time as workers search for lost materials. Time delays can result in late deliveries to customers as well.
Lack of Optimization * The inventory system must collect sufficient data to assist purchasing and planning to forecast future supply needs. A well-optimized inventory system can provide the company with information on quantities used in production as well as scrap and waste information. This data can

Links: * Mobile Apps for Business Align Your Mobility Strategy. Make Real-Time Informed Decisions! www.sap.com/Philippines/mobile Excess Inventory * Excess inventory results in additional costs to the organization in storage costs and funds tied up in unused stock. When companies do not use inventory quickly after purchase, the business begins to lose money on the materials. In the event any of the material is defective, it can take much longer for the organization to discover the problem. Misplaced Inventory * An inventory system must not only store quantity information, but it must also provide details of its location in the building. Misplaced inventory results in wasted time as workers search for lost materials. Time delays can result in late deliveries to customers as well. Lack of Optimization * The inventory system must collect sufficient data to assist purchasing and planning to forecast future supply needs. A well-optimized inventory system can provide the company with information on quantities used in production as well as scrap and waste information. This data can help purchasing determine an accurate inventory level for production materials.