What inventories represent for organizations.

in hive-175254 •  2 months ago 
Nowadays, inventories are the backbone of almost all types of organizations, since they represent their tangible assets. However, these must be governed by the rules and steps that allow to visualize the behavior of the goods or products that are handled, thus achieving certainty in the processes of inputs and outputs, as well as the rotations and fluctuations of inventories through proper management and control of them.

However, organizations must develop and implement systems and processes that allow their operations to be effective and efficient. In this sense, companies must have an adequate management of their inventories as a key element for the development of their activities.

In view of these considerations, according to Carrero, Nouel, Astorga and Guerra (20055), its importance "lies in the method used to value it, but inventory control is still a factor of great importance from the point of view of the company's operations". However, its misuse could have consequences within any financial institution.

Indeed, micro entities of any economic activity manage inventories to control costs, a key element in the administration of any organization.

These, in turn, are affected by the shortage of inputs that the country is currently experiencing, accompanied by the speculative rentierism that invades, barriers that show the concern of the inhabitants who suffer calamities when they go to commercial establishments, find the shelves desolate or the other scenario, such as high costs.

To conclude we can say that from this reality that lurks, is where lies the concern of small traders, by the lack of supply and different inputs as they generate dissatisfaction in customers and loss of control of inputs and outputs of goods, and thus, the loss of prestige of your company.

bibliography consulted:

Carrero, R., Nouel, N., Astorga, M. and Guerra, J. (2005) Contabilidad Intermedia. Universidad Nacional Abierta (UNA). Caracas, Venezuela.

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Hello @dgalan

I agree with your approach, no doubt companies must have a proper management of their inventories, it is a way to have a proper control of their assets.

Best regards, be well.

greetings @lupafilotaxia
It is very true your appreciation to be able to have a control of the inventories is necessary to transcend and to be successful the company.
Thank you very much for your comment

Hi @dgalan, what I can say about inventories, in an easy way is that they are systematized ways of keeping track of incoming, outgoing and what is left of a certain product.
Of course, I know it is a very basic concept for what it can be. Recently, where my sister works, they implemented a system that is very rigorous, with the intention that this inventory process is done on a daily basis.
But it has worked, it allows us to know more about the business itself,

greetings @josevas217
That new model that they implement where your brother works is very orthodox and also are not the most common, no doubt that when the company grows much more, that model will not be reasonable, there are other more effective controls, I hope you find them.
Thank you very much for your commen

Inventories are a good way to manage stock in a business, every business where inventories are not strategically kept, risk going through theft and failure eventually.

Inventory control will help a business strategically spot possible loopholes and the smart control of those loopholes will save the business from disaster.

greetings @gbenga
It is very true your appreciation, to be able to have an effective control of the inventories are necessary for the development of the companies.
Thank you very much for your comment

True investors specially the large ones who hold a major chunk of shares and are on board are known to influence decisions.
As for the retail guys we are the small fish with little vote value and little say in matters.
Interesting educational read @dgalan

greetings @thetimetravelerz
Thank you very much for your comments