Inventory management is the process of making sure there is enough inventory available for customers to purchase. This process also involves forecasting and replenishment.
It is important to have a good understanding of the supply chain in order to manage inventory effectively. A supply chain links all the steps necessary for a product or service to reach its final customer.
A company’s inventory management system is one of the most important aspects of its supply chain. It helps control inventory levels, manage stocks, and balance the flow of goods and services in a business.
It is imperative that an inventory management system be integrated with other systems to be effective. Some examples are sales forecasting, production planning, transportation scheduling, and storage.
Benefits of having proper inventory management
- You will be able to identify those products that have poor rotation, this will allow you to generate new strategies together with your team in order to speed up their rotation.
- You can have an exhaustive control of the merchandise by groups and expiration dates, which is essential in order to avoid losses due to deterioration or expiration. You will avoid making mistakes if everything is digitized.
- It allows the identification of losses and shortages: the recognition of shortages is feasible, since the data indicated in the system must agree with the existing stock in the warehouse, otherwise there will be signs indicating that something is failing.
- Through a system that controls the inventory, a record can be kept of the movements of the merchandise from the moment it enters the warehouse until it leaves. Full and real-time control can be carried out that will guarantee proper management. It must be borne in mind that the merchandise is about money that we have and that it will generate profits when it is sold.
Source: Management
