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» Economics » Material and inventory control » Topics begins with I » Integrated stock management

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By integrated stock management one understands the comprehensive view of all material-related functions, which are concerned both with the supply of the enterprise, the market, and the customer.

As principal purpose gaining of synergies is considered.

General information

The functions of stock management are

  • the procurement/the purchase,
  • the storekeeping,
  • transport,
  • the disposal (and recycling),
  • production planning and - control and
  • the distribution.

Depending on how far these functions are into the stock management of an enterprise integrated, one can differentiate between 3 variants:

  • stock management "integrated"
  • "extended integrated" stock management and
  • "totally" stock management integrated.

Possible stages of the integration

stock management "integrated"

In the simplest case only the functions procurement, storage, transport and disposal are together regarded. The action field of the procurement ends with the delivery of the materials to the manufacturing and/or with the delivery of the goods to the despatch department. This classical form is used in many enterprises.

"extended integrated" stock management

Here one continues to go a step, by one additionally the function production planning and - control integrates. Into this form thus also the manufacturing is referred, whereby with the other functions of stock management can result. Extended integrated stock management is a condition for a manufacturing-synchronous delivery (JIT).

"totally" stock management integrated

In this furthest form of the integration also the distribution is included. By the far action field also the largest co-ordination possibilities and possibilities exist, in order to solve conflicting aims between utilization of capacity, inventory lowering and lowering of the turn-around time.

Which form is used depends on the action potential of stock management, i.e. the "power" of stock management within the enterprise. With a low action potential only a small degree of integration exists, with a high action potential exists the possibility for a high degree of integration.

Organization form of an integrated stock management

is characterized through

  • holistic planning and controlling of the flow of material and goods rivers, which makes clear responsibility and control easement possible in the final result
  • easier tuning between supply of order and Materialversorgung, which can lead avoidance of unnecessary stocks to of waiting periods, respectable
  • clear responsibility for the capital freeze in the supplies on all camp stages
  • clear responsibility for the stock availability in relation to production and the sales market

Integration into the organization

Integrated stock management is a cross section function, i.e. several divisions are concerned. With the kind of the integration one must differentiate between that with respect to a functional organization and that with respect to a divisionalen organization.

Functional organization

In a functionally arranged enterprise an integrated stock management can be led from a central office.

Divisionale organization

With one divisional it recommends to furnish itself to arranged enterprises a central office "stock management", which guideline authority has in relation to the material-economical places in the divisions.

Application in practice

In the range of the repeating manufacturing it comes due to the possibility for the standardisation of the manufacturing at the earliest for a higher form of the integrations. During individual manufacture it can come due to the changing production programmes only very heavily to one "extended integrated" stock management. In all other respects one found out by empirical investigations that the variants with a high degree of integration are used rather rarely. However altogether enterprises use ever more frequently a integrativen beginning.


By the integrated stock management it is to an holistic management of the flow of material from the supplier to, in which strongest development, to the customer, come.

As a result of the consideration of material and temporal interdependences in the goods river synergies are to arise. An example of such a synergy is, if by "extended integrated" stock management the production program can be optimized in such a way that the stock availability remains high despite lowering of the existence. It would come by it to the dissolution of conflicting aims between low stock and high stock availability degree.

See also

  • Just in time
  • Lean Production
  • Supply chain management
  • Computer Integrated Manufacturing
  • Stock management


  • Oskar green: Stock management and logistics. In Hauschildt, Oskar green: Results of empirical economical research, publishing house Poeschel, Stuttgart 1993, P. 379-422, ISBN 3-7910-0678-9
  • Erwin Grochla: Organizational basic concepts for the Materialwirtscahft. In: Lutz J. Heinrich, Klaus Applied management economics and management, publishing house new restaurant letters, Berlin 1985, P. 171-186, ISBN 3-482-56731
  • Refuge Hartmann: Stock management; Organization, planning, execution, control, German operation managers publishing house, 2002, ISBN 3-88640-094-8
  • Dieter Kluck:
Stock management and logistics, Poeschel publishing house, 2002, ISBN 3-7910-1953-8

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