Inventory operations scenarios
Your organization can come across various scenarios and processes while conducting inventory operations. By using finance and operations apps, your organization can streamline these processes. Common scenarios that your organization can come across include:
Inventory replenishment - The inventory manager notices that the stock levels for a particular product are running low. They use finance and operations apps to generate a purchase order automatically based on predefined reorder points and reorder quantities.
Vendor management - A vendor informs the company about a price increase for a certain item. The purchasing department uses finance and operations apps to update the vendor information, negotiate terms, and adjust pricing accordingly.
Inventory transfers - A warehouse has excess inventory of a certain product while another warehouse is running low on the same item. The logistics team initiates an inter-warehouse transfer by using finance and operations apps to redistribute inventory efficiently.
Inventory valuation - The finance team needs to calculate the value of inventory for financial reporting purposes. They use finance and operations apps to perform inventory valuation methods, such as first-in, first-out (FIFO) or last-in, first-out (LIFO) to determine the value accurately.
Cycle counting - Instead of conducting a full physical inventory count, the warehouse manager schedules regular cycle counts by using finance and operations apps. They select specific items or locations to count periodically, ensuring inventory accuracy without disrupting operations.
Serial and lot tracking - A customer reports receiving a defective product. The customer service team uses finance and operations apps to trace the serial or lot number back to its origin, identify other affected units, and initiate a product recall if necessary.
Multiple location inventory management - A company operates multiple warehouses across different regions. The inventory manager uses finance and operations apps to track inventory levels, transfers, and replenishment across all locations in real time, ensuring optimal stock availability.
Demand forecasting - Based on historical sales data and market trends, the sales and inventory planning team uses finance and operations apps to forecast future demand for products. They adjust inventory levels and purchasing plans accordingly to meet customer demand while minimizing excess stock.
Vendor performance analysis - The procurement department evaluates vendor performance based on certain factors, such as delivery times, quality of products, and pricing. They generate reports by using finance and operations apps to analyze vendor performance metrics and make informed decisions about vendor relationships.