It’s every manufacturer’s dream that the warehouse space remains stable and that all stock moves in and out smoothly and on time. It’s certainly a happy picture, but it’s not so easy to achieve.

 

Inventory management is the process of keeping a recordĀ Barcode Inventory System for Small Business of all the goods that belong to your business. The benefits of effective inventory management are obvious, because the costs of doing it badly can be very high. Therefore, choosing the right inventory management system can take your business to the next level.

 

Types of inventory management tools

Many inventory systems claim to be the best for your business, but not all of them are good. Here are some popular types of inventory to manage.

Perpetual inventory

Perpetual inventory is known for its accuracy. The system keeps track of all types of inventory itself and reallocates everything according to production schedules. A perpetual system constantly monitors inventory levels and automatically updates them as products arrive or are sold.

Purchases and returns are also automatically recorded in the stock account. It also continuously updates the cost of goods sold for each sale. With a periodic inventory system, balances are automatically adjusted when a certain period is reached. This has led to many errors. The main reason for this is that during the cycle, one does not know what happens between cycles.

 

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A perpetual inventory system allows you to find patterns of stock theft or depletion and make the necessary changes to inventory.

Consigned stocks

Consignment stock means that a manufacturer delivers products or materials to a customer (retailer) who only pays when the goods are sold to the consumer.

This is a good option for suppliers who don’t want to take unnecessary risks on whether the product will be sold or not. It gives the name ample opportunity to try new products for which there was previously no market.

You can also save a lot of money by only sending a large shipment to your customers instead of making small shipments more often. Retailers can also return products after a few months if they don’t sell well.

Just-in-time inventory

Just-in-time inventory systems, as the name suggests, are a way for manufacturers to meet demand accurately. Products are only produced when an order arrives, not before. Just-in-time inventory is designed to reduce production costs. Therefore, the highest quality products are produced at the lowest possible cost.

Like in a supermarket, you have a large selection, but only a few of each item, and when things run out, the manager orders more, thus avoiding waste. All inefficiencies are minimised as much as possible.

ABC inventory

ABC inventory is a widely used method of allocating your products according to what sells best and what doesn’t. With this method, you calculate that 15% of your key products account for 70% of your sales and 50% of your inventory accounts for only 10% of your total sales.

 

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There is still a middle ground, i.e. inventory that doesn’t shine very well or very badly.

These figures aren’t completely accurate, but they are meant to help you identify the different turnover rates your inventory has. Product lifecycle movement tells you which inventory is selling the most and which is dead.

Main features of the inventory management system

Inventory tools have many different features and these can vary depending on the type of business you have. However, there are some essential features that every inventory tool should have.

Barcodes and labels

Barcode scanning offers a quick and reliable solution. It eliminates the usual human errors that occur as a result of manual data collection. It saves the time of entering data manually and reduces staff training time as it takes only a few minutes to master. Barcodes and labels improve your control over stock and help you accurately track things like prices and product details.

Reporting tools

When inventory is critical to your business, you need to track many things in real time, such as product status, shipped orders, driver locations and more. Today, most inventory systems come with a variety of reporting tools and features built-in, allowing you to seamlessly complete reporting tasks.

Inventory forecasting

As a business owner, you don’t want to let your customers down Warehouse Management System for Small Business, so if one of these items isn’t in stock, you could lose a long-term customer. That’s why knowing which items are in stock and which will soon run out is a great way to provide them with the best experience. Stock forecasting comes in handy. This is where it alerts you when you need to replenish stocks.