Companies that store their products need to use the inventory management system to help ensure their continued profitability and smooth operations. inventory management functions such as managing inventory levels and tracking product locations are essential for enterprises of all sizes that sell products, In this regard, the adoption of the inventory management system helps streamline operations and activities within warehouses, inventory rooms and distribution centres, is that only?, Of course not, other important benefits have been enjoyed by the inventory management system, which we recognize in the rest of the article.
What is the inventory management system?
Inventory Management System is a digital platform that helps companies determine the inventory they require and quantity at any time. Inventory is tracked from purchase to sale of goods. Through the inventory management system, the company's inventory is supervised, including the production, ordering, storage and sale of products in the market, including the management of the storage and processing of raw materials, components and finished products.
One measure of a good inventory management system is highlighted in inventory turnover, where inventory turnover reflects the number of times inventory is sold in a period. Effective inventory management keeps the company organized, and this also provides important data to help companies respond to trends and avoid disruptions in supply chain management and sustain profitability.
Importance of the inventory management system
Real-time inventory tracking helps you improve inventory management and ensures that you have the optimal inventory available to meet orders, and here highlights the importance of the inventory management system, where its benefits include:
Using a modern inventory management system helps you improve inventory management and streamline supply chain management by closing warehouse locations (if your company can operate without them) and reducing associated costs.
The inventory management system allows you to implement a timely inventory strategy or lean inventory strategy to reduce inventory retention costs while ensuring that demand is met in a timely manner.
Inventory management techniques give you investment in a strong and efficient inventory management system, give you speed of movement and cost optimization.
Types of inventory management systems
The types of inventory management systems suitable for any particular company depend on the type of inventory and the company's needs. Here are some of these types:
1. Periodic inventory management
The periodic inventory management system is a method for assessing inventory for financial reporting purposes where physical inventory inventory is made at specified intervals, the accounting method takes this inventory at the beginning of the period, adds new purchases of inventory during the period and deducts the end inventory to derive the cost of goods sold (CGS).
2. Barcode Stock Management
Barcode inventory management system used by companies to set a number for each product you sell? It can also link many data points to the number, including supplier, product dimensions, weight and even variable data, such as inventory count.
3. RFID inventory management system
RFID system or radio frequency identification is a system that wirelessly transmits product identification in the form of a unique serial number to track elements and provide detailed product information, RFID-based inventory management system can improve efficiency, increase inventory visibility and ensure rapid self-recording for receipt and delivery.
What Does the Inventory Management System Offer a Software Idea for Its Customers?
Some of the advantages of using Fekrait Software's inventory management system include:
1. Higher productivity
Using our inventory management system helps you reduce the time taken to process, review and track your merchandise, and through one interface, you can check inventory quantities in all your inventory, track what is sold and what is not sold, find supplier information, and contact payment applications for invoices and purchase orders.
2. Better profitability
You can get business insights using an inventory management system from an Fekrait Software Enterprise to find out which commodities are common this period and which goods can go in the next period, and by observing inventory and tracking reports that show what is selling well or poorly - increased investment in the stocks being sold means greater profit for your business.
3. Easy processing for inventory
The inventory management system allows you to streamline inventory processing by tracking inventory numbers and associated costs, thereby saving time, and by clearly seeing inventory movement, you will always know your inventory status for good inventory management practices.
Inventory tracking automatically updates the quantities available when buying and selling products in real time for faster processing and selling times, the software can also help companies with excess or minus inventory to ensure there is no large stock to transport.
4. Ensuring that requests are met
Meeting deadlines is critical for any company, and when production is hampered by lack of basic materials, the results can be catastrophic, resulting in loss of customers and damage to the business image, the inventory management system syncs any order with your inventory, ensuring that you can complete orders, while automated order can make sure long-lead time materials 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 costs incurred by this, having less inventory per year can result in significant savings over time, and with automated processing, you can always keep stock levels optimal.
6. Better trade negotiations
Our inventory management system provides you with easy access to detailed information about materials whenever necessary, this can be useful when negotiating with potential suppliers, specifically, you will be able to see the most useful suppliers for your business clearly.
7. Improves demand planning
The inventory management system of Fekrait Software Enterprise is particularly useful for manufacturers who need multiple components to produce finished goods, to start production, employees must confirm stock levels to make sure all required parts are available, and the lack of inventory delays production.
The inventory management system of our organization facilitates the implementation of demand planning so that users can predict how many components the company will need in the future and buy them, ensuring that parts are available when needed.
Conclusion:
The inventory management system can help companies make operations more efficient, also helps users quickly locate products in the warehouse, avoiding delays during the shipping process, and the inventory management system enables the sales team to verify the inventory levels of certain items without having to contact warehouse staff about the availability of the product, saving time for employees.
other topics:
Design and production of software
Fekra’s Software for Restaurant and Coffee Shops Management
Fixed Assets And Custody Management System
reference
1.<<POS Systems for Small Business>>، kaleidoscot
2.<<POS Meaning – Definition of Point of Sale System>>, miamiherald
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