Inventory is one of those labor-intensive, but very important parts of managing a business. It is a huge undertaking that allows GPC to show customers our financial accountability. While we have a sophisticated ERP system, which tracks inventory throughout its life cycle, we also do a physical inventory annually at the end of September utilizing an outside audit firm to ensure standard and consistent accounting practices. Here are some ways in which inventory helps us manage our business.
- We know how much product we have on hand at any given point in time, including finished products, work-in-process and products to be used to make new sales items (called “costs of goods sold”)
- We are able to calculate our inventory turnover rate, which shows the number of times a year inventory “turns over” or is sold and replaced.
- We can calculate the value of our inventory, accounting for any obsolete or unusable inventory.
What does this mean for our customers?
Accurate inventories allow full traceability, lot control, and cost control. It is always our plan to employ methods and practices that benefit our customers.
We know it’s not everyone’s favorite day, but we make it as fun as possible…providing lunch and snacks. In the end, inventory is a critical task that enables us to operate efficiently and respond quickly to our customer’s needs. And customers are the center of our focus!