The Logistics Importance Of The Inventory

The logistics importance of the inventory

Introduction

Company: It is an entity in which capital and labor intervene as production factors, in industrial, commercial activities or for the provision of services, in order to meet the needs of society. According to the Commercial Code, “all organized economic activity for the production, transformation, circulation, administration or custody of goods or for the provision of services is understood as a company."The Dictionary of the Royal Spanish Academy, in one of its definitions, mentions that the company is a‘ organization unit dedicated to industrial, commercial activities or provision of lucrative purposes ’.

Developing

Depending on the point of view, there are different company classes, which can be classified according to the economic activity to which they are agricultural, mining, industrial, commercial or service provision; They can also be divided by the size, micro, small, medium or large company. An important part of the company and that emphasizes this research is the warehouse and can be defined as “the enclosure where the functions of reception, manipulation, conservation, protection and subsequent expedition of products are performed”.

Which for (Hernández) “The warehouse is an important element in the logistics chain because if it is well managed, it can be able to stabilize production with demand, since it tries to synchronize the different shortcomings between manufacturing and demand, it also implies a Permanent raw material supply for the manufacturing process ".

One of the primary functions of the warehouse is “to carry out the operations and activities necessary to supply the materials or items in optimal conditions and activities of use and with opportunity.

In order to avoid paralyzes due to lack of them or capital immobilizations over stocks. With the main objective of seeking space and equipment to save, preserve and protect, raw material and supplies. This storage system involves facilities, shelves, equipment, staff, techniques and processes both to receive, store or supply the raw material, supplies and finished products. Inventories. According to Max Muller in his book Fundamentals of Inventory Administration.

Consider the inventory as a tangible and intangible object that allow control of the stock volumes that a warehouse has. From the accounting point of view, inventories are considered as an asset that a company has, which can be taken in cash or materially, and that can generate performance and are an important part in the logistics chain, as mentioned (Hernández) "Inventory is a fundamental part of any logistics system, it is a stored amount of materials that are used to facilitate production or to meet consumer demand".

“Inventories include raw materials, products in process and finished products or goods for sale, materials, spare parts and accessories to be consumed in the production of goods manufactured for sale or in the provision of services, packaging, packaging and Inventories in transit.”The objective of the inventory is to provide or properly distribute the necessary materials to the company, placing them available at the time indicated to avoid increased lost costs of the same.

Allowing to correctly meet the real needs of the company to which it must remain constantly adapted. It is for this reason that inventory management must be carefully controlled. Inventories in business administration are relevant because it is a fundamental component of productivity. If too high inventories are maintained, the cost could lead to a company to have financial liquidity problems, since an inappropriate inventory immobilizes resources that could be better used in more productive functions of the organization.

On the other hand, according to (Fillet) "if an insufficient inventory level is maintained, customers may not be served satisfactorily, which generates profit reduction and market loss". It is necessary for companies, having adequate and updated inventories, since this will guarantee greater reliability in the movements of their products within the warehouse. There are several risks that threaten the inventory process, the most significant can be: natural catastrophes, fires, traffic accidents and other accidents. 

conclusion

Bad manipulation; deterioration and losses; Losses due to theft, bad shipments, spill or expiration; development of new technologies among others. The inventory administration is related to the efficiency in the proper management of the registration, the rotation, and evaluation of the inventory according to how it is classified and what type of inventory does the company have, “since throughout this process this process can be determined the utility or loss of the company and thus establish the financial situation and the necessary measures to improve or maintain it ”(Lucas).