It is generally accepted that inventory records should be at least 95-to-98 percent accurate in order to enable successful enterprise resources planning and provide good customer service. But your information system and the plans, recommendations, and alerts it gives you are only as good as your data. While many companies are able to achieve and maintain inventory accuracy, many more continue to struggle.
Advice and Assistance for Manufacturers.
Most companies do cycle counting these days and they benefit greatly from higher inventory accuracy. But cycle counting must be a continuous process, not just a one-time project.
Sadly, many companies are going through the annual physical inventory process at this time of year, wasting the company’s money and resources while providing no real value to the business or its customers. Why do they do it? Two reasons: (1) the accountants and auditors insist and (2) there is little confidence in the inventory records because of questionable processes and controls .
Market Analysis & Communications for the Manufacturing Industry.
Having taught hundreds of classes in MRP. ERP, supply chain and related topics, I always try to emphasize the benefits of each function or approach in a very personal way – answering the question “What’s in it for me?” for each and every student.
Do we practice what we preach? We can talk all we want about best practices and green resource management, and few will ever know if we have achieved success in that area. Nor should they. The improvement programs you undertake are aimed at better performance, lower costs, and becoming more competitive, and as long as the result justifies the effort and expense, it doesn’t matter what you call it or who knows about it.