Effective Inventory Management Analysis

1230 Words 5 Pages
Inventory is important to the supply chain, yet it is not universally well understood. It is considered as an economic asset to a non-income-producing use of capital funds. It is characterized, both positively and negatively in the aforesaid sentence. Only when considered in light of all quality, client service and economic factors—from the viewpoints of purchasing, manufacturing, sales and finance—does the whole picture of inventory become clear. Effective inventory management is essential to supply chain competitiveness.
Inventory refers to a list of goods and materials, or those goods and materials themselves, held available in stock by any business. Inventory are held in order to manage and hide from the customer the fact that
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Thus the role played by inventory management in small-scale business is of great importance.

Internationally, most small-scale businesses have adopted various techniques of enabling sustained supply of their products even to the remote most parts of the globe. This has led to a wide sourcing of products internationally (Gordon et al., 1982). Manufacturers of products have played a great role of providing their goods to all parts of every continent. Through this international break, complex networks of international alliances have been developed. These have spread the advantage of expertise and offering of particular products for participants in the small-scale business. Internationalization has therefore provided a number of services such as lowering of psychological barriers, increased awareness of opportunities other markets and an increased international small-scale business expertise. Regionally, the impact of a single global market has taken face with the ever-changing business environment. Many businesses have been established across the different nations. In east Africa for instance, every country depends on each other for supply and demand of the different products needed. Most businesses have branches established in the different countries. This enables the provision of goods and services to each part of the countries. In a country like Kenya, where major businesses are located in the