Discussion on inventory management Inventory refers to finished products or commodities held by enterprises for sale in the normal production and operation process, or products still for sale in the production process, or materials and materials consumed in the production process and labor service process. It is a barometer reflecting the operation of enterprise liquidity, and often becomes a regulator used by a few people to adjust profits and evade state taxes and fees. Because it not only accounts for a large proportion in the working capital of enterprises, but also is a kind of liquid assets with poor liquidity. Inventory management is the management of enterprise inventory, which mainly includes inventory information management and decision analysis on this basis, and finally effective control, so as to achieve the ultimate goal of inventory management and improve economic benefits. On the one hand, the reason for enterprises to keep inventory is to ensure the business needs of production or sales, on the other hand, it is due to price considerations. The price of retail shopping is often higher, while the price of bulk purchase is favorable. However, excessive inventory will occupy more funds and increase various expenses including storage fees, insurance fees, maintenance fees, and managers' salaries. Therefore, the goal of inventory management is to try to strike a balance between various costs and inventory benefits and achieve the best combination of the two, which is the goal of inventory management. As an important current asset, the existence of inventory will inevitably occupy a lot of working capital. Under normal circumstances, inventory accounts for about 30% of the total assets of industrial enterprises, and commercial circulation enterprises are higher. How to manage and use it is directly related to the capital occupation level and asset operation efficiency of enterprises. Therefore, enterprises should attach great importance to inventory management if they want to maintain high profitability. Under different inventory management levels, the average capital occupation level of enterprises varies greatly. By implementing correct inventory management methods, the average capital occupation level of enterprises can be reduced, the turnover rate of inventory and total assets can be improved, and finally the economic benefits of enterprises can be improved. Problems existing in current enterprise inventory management and their causes. The income, delivery and balance of inventory lack true records. There are many human factors in recording the collection and carry-over of production costs and expenses, especially in the accounting of engineering projects. For example, two job numbers A and B are started at the same time, and the accounting records at the end of the month show that the material consumption of job number B is very little or even zero, while that of job number A is much more; Raw and auxiliary materials have been collected and consumed, but in fact the cost has not been carried forward accordingly; Raw and auxiliary materials are not consumed, but in fact the cost has been carried forward; The purchased materials have been collected and consumed, the purchase invoice has not arrived, and the warehousing is not estimated as required at the end of the balance sheet, resulting in a decrease in inventory records or even a red-ink balance at the end of the balance sheet. 2. The internal control system is not perfect. In the process of material procurement and product sales, the whole process of procurement and sales, payment and collection, warehousing and warehousing is often completed by the same person, which makes the procurement and sales work have no rules to follow, and also provides a hotbed for black-box operation, which increases the possibility of corruption and bribery. 3. High liquidity occupation. Due to the large inventory and the high amount of working capital, some enterprises' inventory reserves account for more than 60% of the total working capital, which brings great difficulties to working capital turnover. 4. Abnormal inventory reserves crowd out normal inventory reserves. In order to control the occupation of circulating funds, inventory occupation and purchase quantity should be reduced as much as possible in daily inventory management, thus affecting the reasonable inventory reserve required for normal production and operation. 5. Management is not in place. The damaged inventory reserve of the backlog to be scrapped should be reported as the key issue of annual assets verification, but it is only reported every year, and there is no instruction from the superior and no treatment result, which leads to the snowballing of the damaged inventory reserve of the backlog to be scrapped and does not fundamentally solve the problem. On the ways to improve the level of enterprise inventory management. Strictly implement the provisions of the financial system, so that accounts, goods and cards are consistent. Inventory management should strictly implement the provisions of the financial system. At the end of the month, the inventory that has not received the commodity invoice should be handled in time to ensure that the accounts, goods and cards are consistent. 2. Use ABC control method to reduce inventory and accelerate capital turnover. According to the importance of inventory, the daily management of inventory can be divided into three types: ABC. Class A inventory accounts for 10%~ 15% of the total inventory, and funds account for about 80% of the total inventory, and key management is implemented, such as large spare parts. Class B inventory is general inventory, with varieties accounting for 20%~30% of the total inventory and funds accounting for about 15% of the total inventory. Proper control and daily management, such as daily production of consumable materials. Class c inventory accounts for 60%~65% of the total inventory, and funds account for about 5% of the total inventory. General management, such as office supplies and labor insurance supplies, can be purchased at any time. After ABC classification, we should seize the key inventory, control the general inventory, and make a more reasonable inventory purchase plan, so as to effectively control the inventory, reduce the occupation of reserve funds and speed up the capital turnover. 3. Strengthen inventory procurement management, rationally operate procurement funds and control procurement costs. First of all, the planner should have high professional quality, fully understand the production process and equipment operation, master the equipment maintenance, spare parts consumption and production material consumption, and then make a scientific and reasonable inventory purchase plan. Secondly, it is necessary to standardize procurement behavior and increase procurement transparency. Based on the economic principle, the buyer should dynamically monitor the quality, price and financial reputation of suppliers; Collect all kinds of information and compare similar products to get the lowest price and the best quality; At the same time, the bulk of raw materials and large parts are purchased by tender to prevent black-box operation and black-hole procurement. This not only ensures the normal production, but also effectively controls the procurement cost, speeds up the capital turnover and improves the efficiency of capital use. 4. Make full use of advanced management modes such as ERP to realize the information management of inventory funds. In order to make inventory management meet the requirements of modern enterprise management, it is necessary for enterprises to adopt advanced management modes as soon as possible, such as ERP system. By using ERP, people, finance, materials, production, supply and sales can be scientifically and efficiently managed in all directions, so as to plug loopholes to the maximum extent, reduce inventory and make inventory management reach a new level.