Types of Inventory Management Systems
Posted by innoventry on August 26th, 2019
Are you thinking of organizing your business and adding a pro aspect of electronic or online management into it? Do you find it difficult to manually manage the inflow and outflow of resources and physical components of the business into that old ragged diary of yours? Is your business suffering from problems such as deadstock, high taxes, storage costs, and spoilage and space problems? All what you need is a good “Inventory Management” system.
Inventory management for a successful business is needed for at different levels and at almost all the branches of the business. Taking the example of a restaurant, inventory is required at different stages, starting from the purchase of raw material i.e. the cooking ingredients followed by the inventory of raw material used for various dishes to determine the usage of the raw material. Then we will require an inventory of the dishes made each day to determine the selling streak of each dish. Furthermore if the restaurant has venture into online delivery then the inventory of package material used and required is also to be made.
Therefore inventory management is most efficient way to organize and regulate business in modern era of immense competition. In the above example of a restaurant we could see how inventory management can help to determine the capital invested on a particular product or range of products and then to determine what profit we made with the products sold. Same can be the case with any other business relating to shoes, books, steel, clothes or any other commodity. INNOVENTRY adds up these features of inventory management and billing procedures to give your business the tools for deciding amazing business ideas and adding clients to your business with no discrepancy such as billing errors from your side.
We at INNOVENTRY provide you with solutions to your varied problems from billing issues to inventory management and updating. But before venturing into this amazing gift of technology to modern day business let us first understand the types of inventory management systems which can really make your business stand out from other contemporary businesses following almost the same business model or any other business as a matter of fact.
1) Raw Materials
Inventory of raw materials is important as firstly, it gives you the description and idea about the raw materials present to forecast your production of finished products and secondly, you can manage and determine the capital invested.
3) Finished Goods
4) Packing Materials
Although packing materials might not seem like a significant expense. But your business does use a large amount of these supplies every day. If you don’t keep tight control of this inventory, the cost will quickly add up.
5) Safety Stock
6) MRO Goods
MRO goods depend upon the type of business you do. For examples MRO goods for factories include gloves, safety gear, machine spares etc. and for shops include packing materials, binding material etc. Even office supplies like staples, pens and pencils, copier paper, and toner—all of the little parts that keep the wheels turning—are considered MRO goods inventory.
The principle product of many businesses is not always materialistic but there are businesses where the principle product they offer are the services they offer. For example some businesses give services like housekeeping, marketing, recruitment etc. They too need to keep account of the services they provide.
Also businesses like insurance companies and automobile or appliance servicing companies need to be on their toes with their schedules and services they have provide, service inventory helps in them. Your business will be able to rest assured knowing the production process is on a continuum and that your employees will always be on hand when needed. Now that’s what you call service inventory!
Inventory in transit must be accounted for when it comes to supply and demand, along with the timelines for those demands to be met.
If you are into any business then you need an effective inventory management system and INNOVENTORY can help innovate your inventory maintenance procedure in the most optimum manner.Also See: Inventory Management, Raw Materials, Production Process, Service Inventory, Materials, Management, Inventory
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