Inventory Management

Stock Control. What is the stock?

Inventory always refers to your raw materials as well as the inventory of finished products that you sell.

It is measured in units of inventory in addition to the value of the inventory you own and is considered a capital, so maintaining it is very important for business owners and companies.

What are the types of inventory?

For a retailer, there is usually only one type of inventory. This product is ready for sale.

So the inventory in the industry is divided into three main types for ease of accounting. The three types are :

1. product raw material: it includes all the materials we use to produce a particular product.

2-a product that is being worked on: includes all the parts that you manufacture but have not yet been assembled.

3. finished product: as the name implies, this is the assembled product that is ready for sale.

And the retailer owns only this type of inventory.

What is warehouse / inventory management?

Inventory management is the science of purchasing, supervising, controlling and dispensing inventory for sale that is stored in a facility, Warehouse, Warehouse or factory . It covers all aspects of inventory management via supply from the manufacturer to the point of Sale managed by the retailer. The inventory management process starts from the time you place the purchase order and ends (for each order) when the order is executed / delivered to the end customer. As a retailer, your job is to manage inventory smoothly and at the lowest possible cost so you can.

Objectives of warehouse management :

1. sell the right products

2-make the least working capital possible at all times

3-execute orders on time to build customer loyalty

4. maintain your sales growth system.

What are the elements of inventory management?

Effective inventory management is crucial for manufacturers, retailers and brands because it is the way they approach their core business and extract financial value from the buying and selling process.

Inventory management covers the following aspects:

1-the system of naming your inventory items by barcode

2. label the storage areas, down to the shelf level

3-carry out inventory movement from one location to another

4-buying products from suppliers in case of shortage and high demand

5. sell products to customers and distributors

6-review and modify inventory frequently

7-pay attention in case of a general decline and immobility

The importance of inventory management ?

You may often wonder why there is no stock at all. Isn't it easier to just ask the supplier to send you the products when you have some demand for them However, the problem lies in the fact that we never know for sure what is the pattern and behavior of the customer's spending, buying, orders and the extent of demand for it at any time or day.

For example,it is possible that your manufacturer cannot keep up when demand peaks. Or your seller may increase the price of the product that you agreed to sell at a lower price.

So having your own inventory helps to be careful with the uncertainty of consumer behavior when you buy in bulk, you also have an advantage when it comes to price negotiations. Moreover, you can significantly reduce the time between ordering and delivery by having your own inventory, which contributes to fulfilling orders for customers and distributors.

The best ways to manage modern warehouses

1-organizing the storage places inside the store by naming the storage places and the shelf located in it

2-numbering products by barcode to facilitate sorting and inventory operations

3-know the amount of inventory you have via the program screen

4-sales and purchase reports help you determine the active periods in the sale and purchase and the optimal use of capital and products at that time

5-you have to constantly rely on reliable suppliers to ensure that the stock does not run out

6-learning from previous mistakes, predicting the expected demand trend and predicting the prevailing trend to determine inventory quantities

7-contingency planning, so you need to make sure that the stock does not run out in case of a sudden rise in prices

The role of the store manager

The role of the warehouse manager responsible for the warehouse or storage facility is important in management. A proper store manager whose job is to work with the data and draw the right conclusions from the previous statistics. Its role is as follows:

1-Identify the shortage or the possibility of running out of stock, a period before it occurs

2-conduct regular audits of items and end-of-life goods

3-preparation of reports on storage levels

4-Calculate the required inventory quantity and request purchase orders before the end of the inventory of the item

5-use inventory management methods to improve purchasing and work

6-educating warehouse staff on the correct handling and maintenance of inventory

7-anticipate the amount of inventory you may need in the next order cycle and prepare for it.