Chances are that if you’re reading this blog post, you probably already know that inventory management is the balancing of stocked raw materials or parts with the need to minimize costs involved in holding stock against the demand to deliver an order to customer. If you are looking for answers as to how to better manage your inventory, then you’ve come to the right place!
First of all, you should understand that there are several reasons a company holds inventory. The most common are:
- Demand – Being able to deliver what the customer needs when they need it
- A manufacturer needs raw materials in order for them to follow a smooth process of building their product
- Some companies hold inventory to hedge against inflation
- Some companies order a large inventory to get quantity discounts
- Sometimes the lead time in getting a product can be long or eractic, so parts are stocked be able to run their business needs smoothly
Inventory management can be effectively completed by utilizing a software solution that offers many useful capabilities. The great thing about these types of solutions is that they are beneficial to a variety of people working within a company, not just those who perform one specific job function. Some of the features of a worthwhile software solution are:
- Creative invoicing and payment receipts
- Ability to place purchase orders automatically when stock levels reach a certain quantity
- Printing and/or reading barcode labels
- Configuring the warehouse
- Locating and giving visibility to inventory in real time
- Helping to control the cost of holding inventory by offering many accurate and custom reports of what you need to see in your company
If you would like to reap the benefits of having an accurate view of what you have in stock, where the stock is, what is being used and the true costs of your inventory, you owe it to yourself to look into an Inventory Management Solution. Companies that have deployed these customized systems are being rewarded with higher profits, more competitive pricing and higher workforce productivity due to higher efficiency.
Wondering if an inventory management solution is worth the investment?