The management area is way more important than most people think. That is due to the fact that it is not only the entrance and the exit way of all product, but also the main responsible for working the company’s capital. Therefore, having an inventory management is highly important.
Besides that, the inventory control can be seen as an important part that a company has to have so it can guarantee a good flow. Especially when the inventory is intertwined with so many different areas, from products to the financial sector.
With that in mind, the Polyexcel blog created an article to guide you through the inventory world, so you can get the best out of your company’s data and maintain all of your information in control.
What is the importance of the inventory management?
The first thing that you have to keep in mind is the importance of controlling what comes in and out of your inventory. By doing that, you can have a better perspective of how the company is doing and what or working or failing.
When a company invests and bets on a organization system to control all the aspects, all the other process can become more efficient and quicker. The result is an overview of the supply and demand rates.
If you bring a system that keeps your inventory well managed, the production rates will go up while the time that they take to get done will go down. This can help you not only get to know your brand better as a whole, but grow your numbers too.
Another benefit that these data can deliver is that you can decrease the number of product losses that have not been purchased. Also, by that you can easily reduce the amount of waste of materials that are not generating capital to your business. These techniques can avoid these kinds of problems.
At last, you can reduce your spends by knowing exactly what you have in your inventory. A bad warehouse management can lead to unorganized, damaged and stuck products.
Main methods of inventory management
Just like in other areas of a business, there are a lot of inventory system to make the process easier for you. They count with a lot of tools that were tested and have a proven efficiency. Get to know some of them.
This method determines that the last product that was incorporated into the inventory is going to be the first that gets available for sale. It represents the idea of “the last one to come, is the first one to go”.
This technique is not recommended to companies that work with perishable materials. These cases need managers that pay attention to the rotation of all the product in stock.
This means “first in, first out”. It is the opposite of the LIFO way, it basically is the technique of the product that is longer in stock, get to be the first shipped away. This guarantees a natural rotation.
Besides that, it is considered one of the most common systems of stock management. It does not let old products to stay stored and be forgotten about. Also, this model values the stock by the amount that is the closest to the market.
Inventory Management tips
A well organized inventory needs attention but can be simple to achieve if you have the right tools to do so. They allow you to have a fluid communication and systems that helps your customer service to be better and efficient.
Technology can be a big part of this. There are a lot of inventory management software available in the market. They can make the process easier and automatic, especially the ones that refresh the numbers on the inventories and the control of product’s distribution.
The tip is to get to know your business and what is going to work best for it. Then, you have all the information to make a decision on each type of system or technology is going to be the best for you, your workers and, of course, your customers.
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