Inventory management has proven to be an important part of the supply chain of any organization. This applies to both small and large companies. In particular, it is a concept that improves the associated process control of a company's stock. For this research, therefore, an analysis of IKEA warehouse management systems and Apple will be conducted as these are exceptional manufacturing entities that have used the system. The concept is particularly important for the above manufacturers because it helped them avoid breakdowns of products and overstock problems. Many questions are often put behind leaders' secrets efficient operations and effective processes associated with the IKEA supply chain. As the largest retailer of home furnishings in the world, IKEA has two hundred and ninety to eight stores in thirty-seven countries worldwide. Also, it is classified in a higher position as number forty and one of the most valuable brands in the world Forbes besides having achieved a record of 35 billion in sales last year. The company strongly not only impresses customers with high-quality furniture affordable but it produces, but also its competitors and other organizations with which it does business worldwide. These particularly unique inventory management techniques it uses and its supply chain. The inventory of raw materials is important because it helps determine the types of furniture that would be produced by IKEA. The company has set up an appropriate system that ensures adequate visibility of raw materials, thus evaluating what can be produced over a period such as a year. Work in progress, meanwhile, consists of furniture manufactured in the factory of IKEA. The company has set up an all products tracking system, including during production, for accurate monitoring of benefits and assistance in future purchases of raw materials. Design concepts IKEA products are designed to be functional and useful for the general public (Asllani et al, 2014).
Credit policies
A lenient or strict credit policy can be followed by a company. For each potential customer's credit, a credit application form must be completed. The application must contain the necessary customer data supported by appropriate official documentation. This approach is vital for the company to protect itself against potential losses from bad loans. The customer must provide references from at least two other suppliers for which it has credit facilities. All team members must work together to deliver a message consistent customer on the company's credit policies. Each team member should discuss credit conditions with the client at the beginning of the business relationship. Credit analysis is the process of determining the likelihood of repayment and, ultimately, informed decision. The recovery policy is a process to get borrowers to pay. Yes, the current policy has three factors that influence the management of business credit, but it should be revised due to the increased percentage of bad loans. It tends to match the debt to provide adequate cash flow, while a liberal policy is a high risk with the probability of major losses of receivables, the danger of such survival of banks can be real because they are generally subject to thin capitalization and sometimes liquidity problems (Fry, 1978).
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