Administration and Inventory Management
The management of material and property resources, the management of supplies, presents great challenges for companies, as it is responsible for managing stocks, which, at certain times, can be strategic and at others, can become a burden on finances The main objective is to optimize the investment in inventories, increasing the efficient use of the company's internal resources, minimizing the needs of capital invested in inventories. , production, sales and finance, without harming the company's operations.
Resource Management and its Objectives.
Materials Administration is an old activity, carried out in companies since the beginning of administration and ended up growing a lot from the understanding that logistics went beyond the borders of companies, seeking efficiency, that is, meeting the needs and expectations of customers.
When we look at the companies' supply chain, we see that it starts with the raw material supplier, going through the transformation flow of that same raw material, finally arriving at the consumption point, with the final customers. Once the investments in stocks are well optimized, and thereafter well manage them, both in terms of negotiations and acquisition strategies and in terms of sizing stocks and design of distribution systems, will result in a significant reduction in stock levels ,with high earnings for companies.
The objective must be the maximization of profit on what was invested in transformation resources and resources to be transformed, while ensuring efficiency (meets the needs of customers).
Administrators in relation to stocks of goods have different attitudes, since the resources to be transformed (mainly materials) or goods produced, when stocked, require a large capital investment, in addition to the risk of reaching "life" or the shelf life of the product, or a collection left over at the end of a weather season, and needing adequate and controlled warehouses to avoid losses. On the other hand, certain operations cannot exist without stocks, which allow survival in complicated environments and mutants.
Therefore, we must understand that inventories as an element that is essential to balance the relationship between supply capacity and demand do not occur, certainly, as desired by administrators.
Purchasing Management aims to ensure the availability of resources to be transformed (materials) and transformation resources (tools, lubricating oils), etc. within facilities for all areas of the company, it is responsible for developing suppliers that meet to the quality requirements and specifications required by the company, within the time required for delivery and with repeatability.
Inventory management is a very important area for managing (managing) the guarantee of the availability of the necessary items in the production process, making sure that nothing is missing, which causes machine downtime, ensuring that customer needs are met, ensuring efficiency .
Distribution Management, in the past, distribution centers were simply called inventory, today in view of the increasing need to optimize time (every instant lost in waiting is a loss), the activity of distribution management acquires enormous importance, since is responsible for the receipt, safekeeping and distribution of purchased items, internally delivering the necessary quantities at the exact time, in addition to taking care of the safekeeping and distribution of the goods produced by the organization, ensuring that they are dispatched properly and safely to their ultimate destinations.