Inventory refers to all the material goods that a company needs to be able to fully process orders. Raw, auxiliary and operating materials, so-called semi-finished or unfinished and finished products, are therefore included in production. In the case of dealers, one speaks of a warehouse stock that keeps a stock of items ready for dispatch.
As a rule, retailers have a minimum or safety stock in their warehouses to be able to compensate for an unexpected increase in demand or an interruption in the supply chain, such as that caused by the lockdown during the Corona period.
Inventory management: what are your responsibilities
- The Inventory management system concerns the organization of the warehouse and forms an overview of the following points:
- It shows all physical goods that the company needs until the item reaches the customer. Packaging material and accessories should not be forgotten here.
- It also registers all incoming and outgoing goods and records movements within the warehouse.
- Proper inventory management also documents the details of the products that end up in the warehouse: arrival date, precise storage location, size and weight, condition, quality, and expiration date, if applicable.
Benefits of inventory management
Inventory management has several benefits:
– It enables efficient production as bottlenecks are avoided.
– It minimizes warehousing costs, as only as many goods are stored as are needed.
– It enables a quick reaction to changes in the market, as stock levels can be adjusted quickly.
There are many benefits of inventory management knowing each benefit and understanding it would be beneficial.