The importance of inventory management and how does it work
When we talk about inventory or inventory management, we are dealing with a very important aspect of a company. The inventory consists of the goods stored in the warehouse that each company, through its own specific production process, will convert into product in order to sell it to potential customers, realize turnover and thus a profit. Inventory management involves several warehouses, which are part of the supply chain. Between the manufacturer and the store, there are several warehouses through which goods pass that, before becoming finished goods, are still raw material or semi-processed. Imagine how many warehouses and stock management we are dealing with.
The ultimate goal is to have the finished product in the quantity needed at the right time to meet market demand.
Having low inventory results in not being able to deliver the correct amount of goods or having higher supply prices. Having the right inventory stock allows the right balance to -meet market demands at the right price.
Inventory management: how many types are there?
Periodic Inventory Management
Often this type of inventory has a financial purpose and involves a physical count. This is carried out at regular intervals, considers the stock at the beginning of the period, adds up new purchases and subtracts sales to get the value of goods sold in a certain period, this phenomenon is referred to the acronym COGS (Cost of Goods Sold).
Barcode inventory management
The barcode is used to assign a unique identification code to the single product.
RFID inventory management
This case refers to radio-frequency identification or RFID, which is a system that broadcasts wirelessly and remotely a variety of information about products that have a unique serial number and contain detailed product data.
sedApta offers warehouse management software that optimizes stocks by finding the right trade-off between inventory level and supply costs, developing predictive models to optimize stock at each hub of the logistics network, and calculating safety stock, target stock, and replenishment values.