What is an Inventory Management System?

Most businesses rely on keeping a certain amount of goods and resources in stock. For manufacturers and retailers, controlling your business’ inventory is essential to the success of their whole business. Today, there are inventory management tools that can give your business the confidence to know that you will have the resources and products in stock when you need them. This month, we’ll take a brief look at the modern Inventory management system. 

The Basics of Inventory Management

Inventory management is just the process of controlling the resources and products your business has to meet the demands put on your business by its customers. Much is made about the supply chain issues that have happened over the past couple of years and a business that has a solid grasp on their inventory management can proactively act to mitigate some of the issues brought on by these supply chain interruptions.

It’s important to have a clear understanding of what resources you have and what products you have ready for sale. Ultimately, the way that your business handles its inventory can help with transparency, can help reduce costs, and can provide a better customer experience

Inventory Management Considerations

For any business, there are four types of inventory that you have to consider. Obviously, the priority will change depending on the type of business you run, but the four types are:

  • Raw Materials: The goods needed to produce whatever you are selling to your clients or customers.
  • Works in Process: The goods that are not currently finished, but in process, perhaps awaiting additional materials or processing as permitted by the workflow.
  • Maintenance, Repair, and Operations: These are goods that are used to support the creation of your goods, from raw materials to finished goods.
  • Finished Goods: Goods that are ready to head out the door to generate revenue for your business.

Obviously, there are many different ways you can manage your inventory, but today some of the most innovative tools are being used to keep your inventory management on point. Some robust inventory management systems include artificial intelligence to help automate a lot of your procurement and active management; Internet of Things technology to help track inventory levels and assets throughout the supply chain, and applications that integrate with your mission-critical software to help you manage everything. 

Business moves fast and having the technology that helps you manage your inventory in real time can work wonders for your business. To learn more from the IT consultants at Wolk9IT reach out to us today at (646) 741-1166.

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