What are the disadvantages of inventory in enterprises?

Problems existing in enterprise inventory management

2. 1 Inventory management is chaotic, and the accounts are inconsistent.

Inventory management is not standardized, resulting in inconsistent accounts and distorted information. Some enterprises only pay attention to immediate interests, ignoring the long-term development of enterprises, and accounting treatment is not standardized. They realize sales without making sales income, don't carry over the finished goods in inventory according to the actual situation, and don't record the recovered payment, resulting in the extracorporeal circulation of funds, which leads to the fact that the book number of inventory is greater than the actual inventory, and the accounts are inconsistent; In the allocation of goods between some affiliated enterprises, the two sides do not sign a consignment contract, and the goods sold on consignment or on credit are not truthfully included in the inventory, resulting in the physical quantity being greater than the book quantity; Some enterprises do not set up the post of custodian according to the regulations, and do not set up detailed accounts according to the regulations. Example: At the beginning of 2003, a head office hired an intermediary agency to conduct a comprehensive audit of its more than 60 enterprises, and organized a standardized inspection of the basic accounting work of enterprises. In the process of inspection and standard inspection, it is reflected that some enterprises do not regularly take stock of materials, the job responsibilities of custodians are not in place, the procedures for warehousing and warehousing are not perfect, and the finished materials and labor costs consumed by units are not accurate enough, resulting in unclear accounting, false costs and distorted accounting information.

2. 1. 1 There is no real record of inventory income, issue and balance.

The picking list records the collection and carry-over of production costs and expenses, and there are many human factors, especially in engineering projects.

Its disadvantages are more obvious in accounting. 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. 1.2 inventory disorder

The inventory of small enterprises is chaotic, and raw materials and finished products are confused. Some enterprises even put inventory in aisles and offices, which makes it more difficult to store inventory and reduces efficiency. At the same time, we don't pay attention to the improvement of the warehouse environment, dehumidify indoors in humid weather, or don't clean the warehouse often, which leads to the deterioration and damage of some valuable raw materials for a long time.

2. 1.3 The processing time is too long.

Some small and medium-sized enterprises take too long to accept raw materials, and it takes too long for enterprises to send orders to raw material suppliers, which is not conducive to the production of small enterprises. At the same time, small and medium-sized enterprises do not have a good regular inventory system, and they do not arrange special personnel to regularly check the raw materials and finished products in the warehouse to check whether the accounts are consistent or not, and they cannot deal with the situation that the products with quality problems do not match the product quantity in time.

2.2 Unreasonable inventory reserves and excessive capital occupation.

Under normal circumstances, it is reasonable for SMEs to account for 40%-50% of the total current assets on average. However, because enterprises often ignore the management of enterprise inventory from the beginning, they don't care about the amount of funds occupied by inventory. Due to the large inventory and backlog of enterprises, the occupation of working capital is high, and some enterprises' inventory reserves account for more than 60% of the total working capital, which greatly reduces the speed of capital turnover, resulting in the increase of interest expenses, storage fees and insurance premiums of enterprise bank loans. To some extent, it affects the normal production and operation activities of enterprises and the difficulty of inventory cost control. Even some small and medium-sized enterprises went bankrupt because of poor inventory management and unable to maintain normal production and business activities.

2.3 Internal control is not perfect, and job responsibilities are not clear.

Due to fewer employees and more part-time jobs in management departments, the key links of production, supply and marketing lack market forecasting and effectiveness.

Monitoring, often a person in charge, is responsible for completing the whole process of purchase and sale, receipt and payment, and handling warehousing procedures. For example, a head office organized an asset inventory of more than 60 affiliated enterprises, especially in inventory management, which exposed many problems. The actual asset inventory loss is nearly 50%, the inventory loss is serious, the accounts are inconsistent, the purchase is not controlled, and the sales are not supervised, which reflects that the proportion of inventory in current assets is too high and the inventory turnover rate is slow, which has caused immeasurable losses to enterprises. Thus, inventory management has an extremely important impact on the survival and development of enterprises.

2.3. 1 The inventory management system is not standardized and the post responsibilities are not clear.

Small and medium-sized enterprises generally have incomplete institutions, so that managers often hold several positions. The authority to approve the purchase and acceptance of materials is usually owned by one person in the warehouse. At the same time, the department is also responsible for the custody of purchased raw materials and finished products. This lacks the mutual restriction of authority, and it is easy for insiders, especially warehouse supervisors, to use inventory to gain personal interests and cause unnecessary losses to enterprises. The purchase price of raw materials is negotiated between buyers and suppliers, and enterprises and suppliers return the goods, which greatly hinders the normal production of scalpers and even affects the time of on-time delivery.

2.3.2 Lack of audit department and insufficient internal control.

Conducive to preventing fraud. However, many enterprises do not have good internal control, or although they do, they can't really play a role for various reasons. Once mistakes are made, they will be fined, demoted and dismissed, instead of fundamentally solving the problem. In addition, the organizational setup is incomplete, the departments lack the authority to restrict each other, and the management responsibility is not implemented, so it is impossible to form an effective supervision and restriction mechanism within the enterprise, which is easy to lead to procurement and warehousing. The internal control of inventory is an important part of enterprise internal control. Perfect internal control system can find accounting errors in time, and there is no basis for receiving, issuing and warehousing, which leads to waste of internal resources and increases the possibility of fraud in inventory circulation.

2.4 Lack of integration of logistics resources

Using advanced enterprise logistics management theory and management methods, the whole process of enterprise inventory management is optimized and rationally allocated, so that the order flow, logistics and capital flow in inventory management activities are in the best combination state, and the goal of obtaining maximum output with the least input is achieved. But most enterprises lack reasonable and effective integration of logistics resources.

2.4. 1 Lack of optimal management of internal logistics resources.

Logistics resources are divided into internal logistics resources and external logistics resources. Internal logistics resources of enterprises refer to all resources that are beneficial to strengthening inventory management. Including storage resources, human resources information resources, management resources, transportation resources and so on. Whether the internal logistics resources can be fully utilized directly affects the economic procurement, storage and inventory of inventory.

In the process of enterprise inventory management, the integration of internal logistics resources has been valued by most enterprises. However, most enterprises have problems in using internal logistics resources. For example, some enterprises pay attention to the receipt, delivery and storage management and physical preservation of inventory in inventory management, but pay insufficient attention to the value management of inventory. Some enterprises also pay attention to the use of mathematical models and accounting books in management methods, and determine the best economic batch and the best procurement time by establishing mathematical models. But it ignores the optimization of inventory management by optimizing business processes and strengthening the construction of information systems.

2.4.2 Failure to make full use of the external logistics resources of the enterprise.

If we only use the internal logistics resources, it will be difficult to meet the requirements of enterprises to reduce costs and improve competitiveness. We should also pay full attention to the utilization of external logistics resources and realize the reasonable integration of logistics resources. At present, many enterprises pay attention to the integration of internal logistics system in the utilization of logistics resources, while ignoring the utilization of external logistics resources, that is, third-party logistics resources. The Third Party Logistics (3PL or TPL for short) was put forward by Europe and America in the mid-1980s. Its definition is that the logistics industry is neither a producer nor a seller, but a third party that provides services in the whole circulation process from production to sales. It doesn't own goods, but it provides agency services for customers. The specific contents include: commodity transportation, warehousing and distribution, and value-added services. The advantage of third-party logistics is that it can make enterprises get rid of the shackles of logistics to a certain extent and focus on their core business. Its performance is to reduce the cost of activities, improve the service level, strengthen the concentration of core business and reduce employees. Enterprises only pay attention to the integration of internal logistics system and neglect the utilization of external logistics resources, which will increase the storage cost and transportation cost of enterprises, increase the travel expenses of promotion and procurement, increase the production cost of enterprises and reduce the competitiveness of products. At the same time, enterprises have to spend too much energy in the circulation of enterprises, which relatively reduces the time of production and operation of enterprises, which is not conducive to enterprises to concentrate on their familiar businesses and allocate resources on their core businesses.

2.5 Management information is backward and inventory information lacks interest.

The information technology of most enterprises in our country is relatively backward, the network support is poor, and the continuous purchasing system and electronic data exchange system are not perfect, which can't meet the requirements of JIT production mode, that is, "only when needed, the required products are produced according to the required quantity, that is, the production system without inventory or minimum inventory can't be pursued. E-commerce is a revolution in the field of logistics, which can minimize the ordering cost in the optimal batch model. With the development of information technology, the cost of sharing information among enterprises is greatly reduced, which brings hope for supply chain enterprises to reduce inventory level. However, due to the lag of information technology, China cannot give full play to its role in reducing the cost of inventory control. Inventory management lacks necessary technical means. The warehousing account of the warehouse only records the warehousing data of the inventory, and the collection and exchange of other information are completely done manually. Inventory management has a low degree of informatization and inventory information is lacking.