Cash Management and Inventory Management
Cash management is a broad term which refers to the collection, concentration, and disbursement of cash. The aim is to manage the cash balances of an enterprise in such a way as to maximize the availability of cash not invested in fixed assets or inventories and to do so in such type of a way as to avoid the risk of insolvency. Factors monitored like a part of cash management involve a company''s level of liquidity, its management of cash balances, and the short-term investment strategies of it.
Inventory management includes a retailer seeking to acquire and maintain a proper merchandise assortment when ordering, shipping, handling, and related costs are kept in check. It as well involves systems and processes that recognize inventory requirements, set targets, provide replenishment methods, report actual and projected inventory status and handles all functions related to the tracking and management of material. This would involve the monitoring of material moved into and out of stockroom locations and the reconciling of the inventory balances. As well may include ABC analysis, cycle counting support, lot tracking, etc. Management of the inventories, along with the primary objective of determining/controlling stock levels within the physical distribution function to balance the requirement for product availability against the requirement for minimizing stock holding and handling costs.