Every business enterprise no matter how small or big it is holds an inventory. An inventory is another name for stocks, property or a catalogue of tangible goods. Inventory management is extremely important. It allows a company to oversee and control the ordering, storage and use of components that a company uses in its production and also helps control the quantity of finished products for sale.A business inventory is a major asset of a company. Therefore, it is very important for an enterprise to manage its inventory efficiently. Always, remember that a mismanaged inventory can cause financial problems. Mismanagement of an inventory can cause an inventory glut or inventory shortage.
Managing a paper based inventory has always been a hassle. A company usually hires another person to manage it. But what if one could do it online?Online media has definitely simplified the inventory management process. Online inventory management allow you to track your inventory no matter where you are located.
“The sole mantra for inventory management online is downloading good inventory management software”. This software is hassle free and allows you to keep a track of your stocks.Some of the businesses adopt poor inventory management strategies which results in excess inventory products. Excess inventory exists when a company is left with more market demands which lead to increase in the turnover costs.
Some of the best web-based inventory management software’s are:
The inventory software’s simplify paperwork. Since everything is online one can easily track the shipment of raw material, duration of the production process, has the product been completed/finished and has it been sent to the retail outlet. A business can carry out the entire process from production to completion smoothly. It keeps a track of material purchases, product sales and delivery of goods. Inventory software’s provide an entire account of the shipping and storage segment of a production process.
Before a business enterprise starts managing an inventory online they must consider few points:
Assess the type of inventory
Determine the type of inventory you need to keep. There are five types of inventories which any business organisation has to manage. They are raw materials which is required for production of goods, work in progress inventory which consists of goods which are currently under production, finished goods which refers to the products in the warehouse, service inventory and transportation inventory which refers to the supply chain of the finished goods. Managing these five inventories will make sure there is no excess inventory or overstock.
Track market trends
Keep a check on what is selling and what is not selling. Increase production of the saleable goods and deleted the unwanted goods from the inventory.
Determine the quantity of goods & identify stock level
Consider the storage space you will need for the delivered goods and how much it costs. Also, identify a minimum stock level and reorder material to start production again.
Track your inventory
A company can use online software’s to track their inventory. Inventory management software allows you to track the description of each product, value, location and supplier.
Hence, it is of immense importance to analyse, plan and follow up the inventory online. An inventory manager should always make sure that the inventory is kept in a secure location and is only accessible to him and a few key persons of the business. It should be kept secure from online thieves and hackers.
It is always recommended to review the inventory once a week to ensure smooth business transactions.