The process of managing inventory requires involvement from various departments within a business such as sales, production, purchasing, finance, and accounting. In a broader sense, inventory refers to any company’s unused resources, but it usually pertains to unfinished goods, supplies, and other items kept in stock to fulfill anticipated orders or shipments.
Inventory control –
1. Monthly inventory control.
2. Annual inventory control Scopes of Inventory Control
- Raw materials.
- Yarn packages.
- Grey fabrics.
- Finished fabric.
- Spare parts.
- General store:
- Capital equipment.
- Accessories.
- Stationary.
- Maintenance parts.
Objectives of Inventory Control in the Garments Industry
- Maintaining adequate stock levels: Inventory management aims to ensure that the company maintains adequate stock levels of raw materials, work-in-progress, and finished goods to meet customer demand and avoid stock-outs or excess inventory.
- Reducing lead time: Inventory management seeks to reduce the time it takes to acquire raw materials, convert them into finished products, and deliver them to customers.
- Minimizing holding costs: Inventory management aims to minimize the costs associated with holding inventory, such as storage, handling, insurance, and obsolescence.
- Maximizing inventory turnover: Inventory management aims to maximize inventory turnover by reducing the amount of time that inventory sits idle in the warehouse.
- Improving efficiency: Inventory management aims to improve production efficiency by ensuring that the right amount of raw materials and work-in-progress are available at the right time to keep the production process running smoothly.
