Know about the costs associated with inventories:

Posted by markwahl barg on August 21st, 2019

A sales and inventory management system control software allows you to save on costs. In this article, we will learn why it is important that you evaluate if the investment in the software is proportional, compared to the operating costs during this inventory management.

The costs associated with the processes of maintaining an inventory are differentiated, taking into account the nature of the organization and these costs consist of:

The cost of ordering:

Sales inventory management software saves your cost of ordering. The cost of the order is divided into two categories: for the commercial activity and for the productive activity that accounts for all the processes that have to do with assembly or manufacturing.

For commercial activity:

This cost accounts for the processes that must be carried out for the issuance of order. Among these are telephone calls, administrative paperwork expenses, the preparation of formats and to this the intrinsic expenses of the processes are added to request a certain amount of units of a material.

For productive activity:

These expenses account for the processes of manufacturing and assembly of the merchandise and are associated with the processes of enlistment of production runs to this. The logistic process of the transmission of the orders is also known as the concept of the internal customer.

Cost of holding or holding inventories

The costs that are associated with the maintenance of the inventories are managed by the organization and are predominantly determined by the average permanence of the logistic units on the site. That is determined for this in the function of time. This is because each of the units represents a cost in the handling process when it is received, stored, inspected and dispatched.

Opportunity cost:

Another cost that can be identified in the maintenance of the merchandise is what is known as the opportunity cost that is related to the investment that is made in the operation of the inventories and that causes the organization to depend on its availability to invest in processes that stimulate the creation of added value.

Holding costs:

Sales inventory system also save your holding costs. You should keep in mind that about the costs of tenure that can be evidenced in the different sources such as the costs for stock services that have to do with taxes, insurance and over-stock of the merchandise.

If you want the best Sales and inventory management system, do not hesitate to get in touch with for the tailored inventory management software for you.

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markwahl barg
Joined: November 12th, 2016
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