2013 - 1st Quarter

Perpetual Inventory

By Suzanne Bond, Supply Chain's System Principle

Perpetual Inventory

On June 30th of 2012, Procurement’s Supply Chain Informatics converted the Missouri Orthopedic Institute and Interventional Radiology from Periodic to Perpetual Inventory in PeopleSoft.  Perpetual Inventory is an accounting term that describes an Inventory management system where information about Inventory is tracked and updated on a continuous basis.  A perpetual inventory system keeps a running account of all inventory on hand after each transaction.

With any project there is a lot of planning to get a new business unit added.  Automatic (replenishment) ordering is a big factor when a department goes live because it takes the place of a person placing orders daily.  The system looks at what is on the shelves and orders accordingly.  Supply Chain Informatics works with the department to get items built, minimum/maximum levels/locations for ordering and provide training for Go-Live.

The benefits of having a Perpetual Inventory system are to avoid overstocks and shortages, to keep accurate real time records and to help cut waste while reducing expenses.  We continue to provide daily assistance to the eleven business units on the system and will provide support for those slated to go live in the near future.

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