Inventory Management

How is the Inventory management process?
1. It's a hard process, especially for larger organizations, with the same basics, doesn't matter the kind of organization
2. Inventory management has a responsibility to deliver goods into the receiving area, those components are put into stock areas
3. According to physical space, in smaller companies, the products could go straight away to the stock area
4. In case of wholesale distributor, goods can be products rather than raw material
5. Inventory management makes use of multi information to keep tracks of the goods, as serial number, cost of goods, quantify of good, etc
6. You'll find more information in the next link about Inventory management process: https://www.zoho.com/inventory/what-is-inventory-management/
7. Watch this video to learn more about Inventory management process
How does it work?
1. Supervise the flow of good from manufactures to warehouses
2. It has an important function that is to keep a detailed record about each new or returned produc
Benefits of inventory management
1. It's a strong aspect of a business, managing inventory will help you to get visibility in the supply chain
2. There are many benefits as:
  1. Increased sales
    1. Active invectory
  2. Increased information transparency
    1. Know the time that items are received, kitted, manufactured
  3. Shorter lead times
    1. Their inventory is active, it produces a reduction in lead times
  4. Lower cost
    1. Help result in decreased inventory write-offs
  5. Improved delivery performance
    1. When the inventory is update all the flow of good and services are better to your customers
  6. Increased employee efficiency
    1. Big solution in an inventory management save time
  7. Accurate planning
    1. Make good decisions according inventory trend
  8. Decreased stock-outs
    1. Their decreased stock-out is less with an inventory management active
  9. Increased customer loyalty
    1. Customer will feel grateful about your accuracy and efficiency
  10. Increased inventory turover
    1. Optimize the value of your goods, keeping fewer slow moving products on hand
  11. Watch this video
Improving your inventory
1. Managing inventory has a great importance because it helps us to identify problems and mistakes before to star
2. Tips for improving your inventory management
  1. Don't miss sales due to out-of stock items
    1. Make observation of inventory is the key for success
  2. Don't waste cash in overstocked inventory
    1. Spent your money in the right way, don't buy unless items
  3. Identify issues before they get out of control
    1. If you monitor your inventory level, will be easier to find issues
  4. Improve the accuracy of your accounting and profit reporting
    1. You have to be sure what's the stoke to confirm profit reporting
  5. Customer service
    1. Having a system is essential because will help you to easily and find what they are looking for
  6. Efficient re-ordering
    1. If you have a inventory system, you won't be worried because the the process will be easier
  7. Minimize theft and losses
    1. Make a consistently manage in your inventory will help you in a lower chance of theft
  8. trust in your information systems
    1. If your system have the right information, you'll get better data for more accurate reporting
  9. Minimize warehouse costs
    1. You'll be able to process more order if you know where things are
  10. Efficient stock take and end- of-year
    1. If your level are up date, you won't have issues, and will have a big efficienty
  11. Watch this video

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Inventory Management

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	Created by Bodega Monteria almost 6 years ago