Assets

CIOP is an end-to-end supply chain certification program that focuses on practical aspects in addition to the theoretical concepts. For example, a typical supply chain certification may teach what is cycle counting and how to do the ABC classification. CIOP starts with these fundamental concepts and goes on to teach the participants to develop the cycle counting policy of an organisation, 10+ criteria used in ABC classification, multi-criteria ABC classification and cycle counting best practices to increase the efficiency and effectiveness. In case of CIOP, you learn the concepts and will be ready to implement in your day-to-day job in supply chain. The pedagogy is structured such a way that all the concepts are explained with industry examples, which makes CIOP as the preferred training and certification program for supply chain within the industry.

The assets of an organization are the materials used either to make revenue or produce surplus profit. The word assets are most often applied to the tangible capital assets or capital items that an organization possesses. 

Usually, an organization has few assets. The difference between assets and liabilities is the net worth, not revenue or profit. Therefore, in a company where the value of assets do not exceed the amount of liabilities, one would say that the two are equal.

On the other hand, there are companies that have huge inventory, even though the value of their assets does not exceed their liabilities. In such cases, their business strategy is to maintain a low level of inventory to increase the operational productivity and thereby, reduce the cost of production. Most often, if the inventory is very high, the company will be able to reduce its production processes, which will reduce the cost of production. One can also achieve this reduction in the cost of production by increasing the efficiency of the inventory and thereby, improving the profit margin.

In addition, in the case of increasing the level of inventory to improve the efficiency of production processes, the inventory also enables the firm to control the cost of production. Since the firm will be in a position to control the cost of production, it will be in a position to change the production processes and reduce costs. Thus, assets contribute to the long-term viability of the company. If the firm has too many non-productive assets, then it will be difficult to reduce costs. This will result in reduction of market share and decline in the valuation of the stock.

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