MANAGEMENT OF COMMODITY INVENTORIES OF TRADE ENTERPRISES

Abstract

The relevance of the research topic is that at the level of an individual trade enterprise inventories are the main resource and an important component of the economic system, as they constitute a significant part of the company's assets, are an important element of its resource potential. The financial performance of a business depends on the quality of inventory management. The purpose of the study is to substantiate the theoretical foundations and develop practical recommendations for improving inventory management of trade enterprises in a dynamic business environment. It is determined that a significant part of retail trade enterprises after a short period of their activity becomes unprofitable or goes bankrupt. The reason for this situation is the non-operative processes of inventory management as well as the lack of systematic analysis of commodity flows. The article considers the main causes and consequences of the formation of excess inventories at a trade enterprise. After reviewing the professional literature, analyzing the indicators of economic activity and taking into account the peculiarities of the inventory and cost management system of trade enterprises, the authors developed a general structural and logical scheme of the strategic inventory management process. The relationship between the components of strategic, functional and operational inventory management of trade enterprises is considered. The structure of expenses is investigated and the classification of expenses for inventory management of the trade enterprise is proposed. During the study, there were slight fluctuations in the structure of inventory management costs. This happens, according to the authors, due to increased requirements for storage and transportation of stocks, changes in demand for goods, increased competition etc. The analysis conducted allowed to determine the main directions of optimizing the movement of inventories. The inventory management policy at the enterprise should be aimed at reducing the period of their turnover and optimizing the structure and volume of inventories at minimal cost. Proposals were made on management optimization of trade enterprises inventories.