What is meant by Cost of sales planning?
Inventory planning refers to the strategic and operational planning of the use of goods and raw materials in a company to optimize production and sales processes. The goal is to optimize inventory availability, minimize costs, and avoid shortages or excesses. This includes planning and controlling inventory usage based on sales forecasts, orders, stock levels, and production requirements.
Typical Software Functions in the Area of "Inventory Planning":
- Demand Forecasting: Analysis and forecasting of inventory needs based on historical sales data, seasonal fluctuations, and market analyses.
- Inventory Management: Monitoring and managing inventory levels, including stocktaking, safety stock levels, and reorder points.
- Order Planning: Automation and optimization of the ordering processes to ensure timely and appropriate quantities of inventory.
- Supplier Management: Managing relationships with suppliers, including order processing, delivery times, and contract management.
- Cost Control: Monitoring and analyzing costs related to inventory usage and storage, including identifying cost-saving opportunities.
- Shortage and Excess Management: Identifying and managing shortages and excesses to prevent production disruptions and high storage costs.
- Reporting and Analysis: Generating reports and analyses to assess the effectiveness of inventory planning, including KPI dashboards and trend analyses.
