Behind every successful store is a comprehensive inventory management system. For a business to be profitable, it must understand the customer's needs and possess the goods required to meet the market demand. To do this, the small business must know its inventory inside and out, and to do this, the business must have inventory management.
What is inventory management?
Inventory management are systems that help companies determine the inventory they require and how much at any given time. Tracks inventory from purchase to sale of merchandise. The practice identifies and responds to trends to ensure there is always sufficient stock to meet customer orders and appropriate warning of shortages.
Once sold, inventory becomes revenue. Before selling, the inventory (although it is reported as an asset on the balance sheet) ties up the cash. Therefore, too much stock costs money and reduces cash flow.
One measure of good inventory management is inventory turnover. An accounting measure, inventory turnover reflects the number of times inventory is sold in a period. A business does not want more inventory than sales. Poor inventory turnover can lead to dead inventory or unsold inventory.
Types of inventory management
Periodic inventory management
A periodic inventory system is a method of valuing inventory for financial reporting purposes where a physical count of inventory is performed at specified intervals. This accounting method takes inventory at the beginning of the period, adds new purchases of inventory during the period and deducts the ending inventory to derive the cost of goods sold (COGS).
Inventory management companies use barcodes
Barcode inventory management systems to assign a number to each product you sell. They can associate many data points with the number, including supplier, product dimensions, weight, and even variable data, such as inventory count.
RFID inventory management system
RFID or Radio Frequency Identification is a system that wirelessly transmits product identification in the form of a unique serial number to track items and provide detailed product information. RFID-based warehouse management system can improve efficiency, increase inventory visibility, and ensure rapid self-registration of receipt and delivery.
What does the inventory management system from fekrait Software offer to its customers?
1. Higher productivity
Using our inventory management software helps you reduce the time it takes to process, review and track your goods. Through a single interface, you can check inventory quantities in all of your inventory, track what's selling and what isn't selling, find supplier information, and connect to payment apps for invoices and purchase orders.
2. Better profitability
Get business insights by using Inventory Tracking Software from fekrait Software to see which commodities are trending this period and what could go next. With inventory monitoring and tracking reports that show what is selling well or poorly - investing more in the stocks that are selling means greater profit for your business.
3. Easy inventory supply
Simplify inventory handling by tracking inventory and inventory numbers and associated costs, using our time-saving inventory management software. With a clear view of stock movement, you will always know the status of your inventory for good inventory management practices.
Inventory tracking automatically updates available quantities when products are bought and sold in real time for faster processing and selling times. The software can also help businesses with excess or understocked inventory to ensure they don't have too much inventory to move.
4. Ensure fulfillment of orders
Meeting deadlines is critical for any company, and when production is hampered by a shortage of essential materials, the results can be disastrous, resulting in lost customers and damaged business image.
Inventory management software syncs any order with your inventory, ensuring that you can complete orders, while automated ordering can make sure materials with long lead times are always available.
5. Significant savings from inventory control
Improved inventory management can allow you to reduce obsolete and excess inventory levels using valuable space and the costs that this incurs. Having less waste inventory per year can result in significant savings over time, and with automated processing, you can keep inventory levels always at an optimal level.
6. Better business negotiations
Inventory management solution provides you easy access to detailed information about materials whenever required. This can be useful when negotiating with potential suppliers. Specifically, you will be able to clearly see which suppliers are most beneficial to your business
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