Blog Detail

Inventory management system:

In order to track, the current amount of product that is business stock, sales and delivery, this all things would get trace by using an inventory management system. Inventory management system is also used for manufacturing industry to create work order and related documentation.

Inventory management referring to storing, ordering, and processing of inventory or say goods of company, whereas inventory management system/software refers to tracking, billing, and manufacturing all of them.

Most of the time industry use an inventory management system to keep away from overstock

There are the following types are inventory:

• Raw inventory: most of the industry are carrying raw goods and convert into finished goods.
• Work in progress inventory: After converting raw into finish goods rest of the stock is WIP inventory
• Finished inventory: completely ready formatted goods are finished inventory

The objective behind using of the Inventory management system:

• High importance of using inventory management system is dealing with manufacturing and retail trading, that’s why industry invest most in the inventory management system
• 80% - 90% of industry invest in inventory, so handling, storing, and management of inventory should be proper which is managed by inventory management system
•  The main aim of inventory management system is to keep track on stock so that they never overstock
• Sometimes the investment amount is more than spent amount, in such case need to reduce costing of inventory which is done by inventory management system
• Inventory management system track duplicate ordering, used to minimize loss, supply required materials and maintain records.

The technique used in inventory management system:

• On time delivery:  This strategy is used to increase efficiency and decrease wastage.

On-time delivery is leads to reduce costs and improve efficiency.

• Analysis of inventory: analysis is nothing but keeping stock and not letting over.
• Shipping: purchasing products by a third party and selling to customers when they needed, is directly help to the merchant that they not need to handle products.

Benefits of the inventory management system:

• Manual task automation: - Inventory management software can do tasks very easily.
• Increasing profit:  by using inventory management system, tracking of goods is very easy, because of that it never leads to overloaded product. In such way, profit helps to increase. Also, well management of inventory can able to cut the cost and increases profit
• Creating integrity in business
• Keeping customers to happy: - Good and correct stock management lead to happy customer
• increasing accuracy: - The array of stock would be arranged by inventory management software which lead to accuracy.