 |
Managing Plant Material Inventory
Charles R. Hall
Extension Economist-Horticultural Marketing
Texas A&M University
"Sorry Joe, we overbooked sales for that plant. We won't be
able to ship those to you Monday as promised..."
"What do you mean we're out of tissue culture plantlets! Didn't
we just get a new shipment in?"
"Should I discount these plants to open up bench space or hold
on a little longer?"
Do any of these scenarios sound familiar? Hopefully not, but if they do,
you may be experiencing inventory control problems. Managing inventory
can be one of the most arduous tasks that face greenhouse managers. But
it doesn't have to be. Applying some basic inventory management principles
may eliminate some of the headaches.
In order to maintain control of plant materials, equipment, tools,
and supplies, an inventory control system is needed. Business management
experts often classify inventor systems according to the usage of the item
in inventory. Following this line of thought, a greenhous inventory can
be categorized into three groups including plant material inventory, equipment
inventory, and supplies. Last month, we discussed an inventory system for
equipment and supplies. This month, we will discuss the basics of maintaining
a plant material inventory control system.
A plant material inventory system is designed to provide management
with information for making managerial decisions regarding production,
sales, and dema nd trends. By maintaining a current, up-to-date plant material
inventory, problems arising from overselling or leaving plants unsold can
be minimized. A knowledge of plant inventory can provide the basis for
planning work schedules, labor needs, space requirements, and supplies
needed. Inventory data are also needed when planning production programs,
calculating costs of production, and developing pricing strategies. Cultural
practices and their impact on inventory turns may also be evaluated.
To talk about the benefits of plant material inventory control
systems is one thing, but actually developing a system that indicates (at
all times) how many plants of each variety or cultivar are available, in
what size, and where are they located within the greenhouse operation,
is another. The actual system of plant inventory control will tend to vary
with the size and type of each individual greenhouse operation and the
level of sophistication desired by the greenhouse manager. For relatively
small "Mom and Pop" operations, the plant material inventory system may
be quite simple, needing infrequent updating. But for larger, more commercial
greenhouses, a rather complex system that must be updated daily may be
required. Numerous computer software companies have developed computerized
plant material inventory systems that will fit the need for most any sized
operation.Taking the physical plant material inventory is facilitated by
developing an integrated layout of thegreenhouse operation using plant
blocks and labeling benches or rows. The count is made by trained individuals
using plant inventory schedule sheets or electronic recorders. Electronic
recorders are expensive, but offer the advantage of transferring data directly
into computer memory storage. In some of the larger, commercial greenhouse
operations, physical plant inventory is combined with data regarding new
potted/seeded plant material and sales data. By continuously tracking these
data, it is possible to determine fairly accurately the status of all plant
material within the greenhouse by type and location. From a production
management standpoint, if accurate data are collected and maintained over
time, it is possible to determine plant losses, estimate growth rates,
pinpoint problem areas, and check on cultural practices.
Maintaining an accurate sales inventory may be the most import
ant attribute of an inventory control system. However, this data must be
accumulated in a timely manner to be most effective. This means updating
sales data on a daily, or at least weekly basis. The sales inventory can
also be posted with current price information as an aid in quoting prices
to customers. Each greenhouse manager must adjust the plant inventory system
to the situation and develop it to provide the control and information
necessary to make sound managerial decisions. Computers can be used to
provide an immediate update of sales inventory and can be programmed to
provide an analysis of sales by variety, customer, geographic region, or
by salesperson. In addition, the computer may be used to update sales records,
prepare price schedules, and with the input of inventory data, can be programmed
to estimate potential sales inventory. Several commercial vendors currently
provide inventory control software for the greenhouse and nursery industry.
Return to Business Management Index |