Inventory management is a very important function in any organization because it impacts the financial health of the balance sheet. Every organization constantly strives to maintain optimum inventory to be able to meet its requirements and avoid over or under inventory that can impact the financial figures. Inventory management requires constant and careful evaluation of external and internal factors and control through planning and review. Most organizations have a separate department or job function called inventory planners who continuously monitor, control and review inventory and interface with production, procurement and finance departments.
For any business, there are two ways in which inventory management can be tackled - perpetual and periodic. In a perpetual inventory system, the inventory is constantly verified and differences if any after reconciliation are adjusted. In other words, it is a continuous, ongoing process. On the other hand, a periodic inventory is one in which the inventory is taken at a specific time, typically the financial year end. The perpetual inventory system offers many benefits over the periodic system by offering better process control and is the preferred choice of most major businesses that need inventory management service.
LCPL provides the following services in this space: