Inventory Management is the supervision, controlling and handling of a company’s non-capitalized assets and stock items. Inventory management supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale.
This primary component of supply chain management has a key functionality of keeping a detailed account of each and every new or returned product. The simple goal that it pursues is to keep the right inventory levels all the time and not have either surplus or deficient stock.
Although inventory ties up a lot of cash, its efficient and effective management is vital for businesses. Adequate stock management can lead to improved cash flows and drastically decreases wastage of stock items.
Inventory management comprises of delivery of goods and products to a warehouse or a point-of-sale. Dedicated inventory management softwares are deployed to overlook the transit of goods. Additionally, these systems can integrate with cloud-accounting programs to assess the value of the products. Some of the techniques adopted in inventory management are:
- Just-in-time: Delivery of products to the warehouse is based on analyzing customer behaviors such as buying patterns & seasonal demands.
- ABC Analysis: A methodology in which incoming raw materials and products are classified according to their inventory values and quantity.
- Stock Review: A conventional technique in which regular analysis of current stock take place in comparison to projected future customer trends.
At Eccountant, we offer you a proper inventory management system that empowers you with accuracy over your products, a systematically organized warehouse, lets you save time and money and replicates organizational productivity. With Eccountant, you get to know your exact reorder points which in turn leads to reduced queue time.
Some of the benefits of practicing inventory management are:
- A general 10% increase in sales.
- Increased information transparency as you’re quite aware of the items being received, picked, shipped, manufactured etc.
- Lower inventory holding costs and decrease in write-offs.
- Leads to accurate planning as you can make informed decisions based on inventory trends.
- A 10-25% decrease in stock-outs.
- Real-time inventory updates improve delivery performance.