Goods Management Process
Goods management is the process of managing the availability, movement and usage of goods, merchandise and inventory across an organization or network of affiliated organizations. It includes tasks such as procurement, carrying out payments, maintaining records, tracking goods, managing and controlling inventory levels and tracking orders. Goods management is a critical component of successful supply chain management, which is the overall management of a business’s physical flow of goods and items. Having the right amount of stock and inventory is necessary to ensure that customers can be satisfied.
Procurement
Procurement is an integral part of a goods management process. It involves buying the right types of goods, items and products in the right quantity at the right time. This may involve buying large and/or specialized orders at a discounted rate, buying supplies in bulk for future use, and/or accounting for special needs and requests. Procurement is essentially the pre-production phase, wherein decisions are made and orders are placed on the appropriate resources. Areas of consideration include location, cost and quality.
Payment
The payment process is a critical component of a goods management system. Payments for goods must be completed accurately and promptly in order to ensure that the business has the funds available to complete the order. This may involve making payments both at purchasing and at the delivery level. It is essential that the payment systems are streamlined and efficient, as delays can often result in missed deliveries and other issues.
Records Maintenance
Records must also be maintained in a goods management process. This includes keeping detailed information on the purchased goods, as well as tracking orders, managing and controlling inventory levels, and ensuring that all payments have been made in a timely manner. By maintaining accurate records, the business can ensure that their inventory levels are properly managed and their supply chain remains efficient.
Goods Tracking
Goods tracking is a critical component of a goods management system. This involves tracking and recording the movement of goods from one location to another, both within the organization and outside of it. It can also involve tracking deliveries and shipments from vendors, as well as receiving and tracking orders from customers. It is important to have a system in place to ensure that all goods are accounted for and adequately tracked.
Inventory Management
Inventory management is an essential component of a goods management process. This involves controlling and monitoring the inventory levels of a business based on the needs and orders of customers. It also involves analyzing inventory levels to ensure that they are adequately stocked and that any excess inventory is eliminated when possible. It is important to ensure that the right amount of stock is available at all times in order to satisfy customer demand and maintain profitability.
Order Tracking
Order tracking is a critical component of a goods management system. This involves monitoring and tracking orders from customers in order to ensure that they are fulfilled in a timely manner. It is important to monitor order progress and ensure that the business is able to follow up on any orders that are not completed in a timely manner. Additionally, order tracking can help identify any problems or areas of concern within the supply chain.
Goods management is an integral component of successful supply chain management. A successful goods management process ensures that customers are satisfied and that the business operates efficiently and profitably. It involves tasks such as procurement, payment, records maintenance, goods tracking, inventory management and order tracking. By implementing and following a comprehensive goods management process, businesses can ensure that the supply chain remains efficient, reliable and profitable.
