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Inventory Management

Inventory Management: Key To A Successful Manufacturing Business

Inventory management is very important for any garment production. This is a part of the manufacturing business that needs to be properly processed and controlled. This aspect demonstrates the high level of mismanagement that has led to the bankruptcy of many of these companies. Some of these manufacturing companies are very large but with very expensive raw materials/components in the production process. 

When measuring this raw material into production it is important to dispense with the correct amount/dose to avoid losing money, especially if quality control measures are not too strict. Therefore, it is important to have strict inventory controls in place to create advanced bills of materials and to avoid damage and capital losses due to product returns, spoilage of products, increased shipping/freight costs due to double handling, and capital erosion.

What is Inventory Management? Techniques for 2021

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The hallmark of a good and stable inventory control system is capital protection. The first thing a business needs is not to make a profit at any cost but to protect capital. Proper inventory management enables the proper use and investment of company capital. Since large investments are made in the storage of production materials, it is also important to have adequate measurements to safeguard the company's assets by having the right person responsible for inventory management and checking inventory for the period.

One area that is equally important to inventory management is managing the available resources – people and machines. It is in the company's interest to prevent laziness in the company. Time is paid and staff is designed to work for their daily wages. Proper inventory control helps eliminate inactivity in the production system.