What You Should Know About The Inventory Control Management?

Systems for inventory management might be integrated

Your company probably performs other tasks besides managing inventory, and you probably use other applications as well. You should create system connectors to guarantee smooth data exchange.

Integration is essential to establishing a seamless two-way data flow when adding a separate IMS to existing business management software, such as a WMS or ERP.

To automate your stock tracking and transaction processing processes, you can combine your IMS with hardware like barcode scanners, RFID scanners, credit card readers, etc. in addition to software.

A linked mobile app is useful since it enables you to manage your company from any location at any time. Additionally, it can operate as a scanner rather than a separate device, support sales and warehousing operations with real-time inventory information, and improve employee communication.

Inventory optimization

Inventory optimization determines which products are popular and makes it easier to order the appropriate items and quantities. Optimizing the use of the storage area is another aspect of it. Numerous strategies are used by various firms to try and optimize their inventory.

• According to the ABC analysis, all items are divided into 3 groups, with A being the most popular and C being the least. It determines which goods make you the most money and need extra care using the 80/20 Pareto rule.
• The just-in-time (JIT) method entails keeping the least amount of stock possible. In essence, it is how McDonald's operates; they do not begin constructing burgers until the order has been taken. The dangers of stockouts and non-fulfillments are greatly increased while storage costs are decreased.
• Cross docking and dropshipping are also inventory management strategies because they essentially do away with the necessity for storage. They do, however, necessitate meticulous planning of all activities and high agility in responding to interruptions. For additional tips on how to maximize such tasks, see our page on yard management.
• Backordering is the practice of buying merchandise from you only after it has been sold or requested. Although it can be difficult to do with several items and may create customer discontent due to a longer delay to fulfillment, it decreases holding costs and hazards of overstocking.
• A safety stock is a predetermined amount, generally of high-demand goods, that is retained as a backup in case of unanticipated changes in demand or supply. Having it can prevent stockouts, but it comes with additional storage costs and locks up your capital. Nevertheless, a study reveals that nearly 20% of businesses want to keep additional stock in the wake of the COVID-19 supply delays.
• First in, first out (FIFO) and last in, first out (LIFO) are the two basic methods for shifting inventory. Since it gets rid of older things first and prevents expiration and spoilage, FIFO is more popular.

Management of suppliers and customers

Analyzing your suppliers' performance is a crucial part of managing them so that goods are consistently and dependably delivered. To keep reordering under control, IMSs can assist you in tracking the status of your orders, shipment issues, and lead times among suppliers.

A client database is crucial for analytical purposes as well as automating the document filing process. Demand forecasting is based on the analysis of purchasing patterns, and customer behavior analysis enables you to fine-tune your marketing approach, enhance customer satisfaction, and boost personalisation.

Production control

In addition to typical inventory control and reordering capabilities, the IMS manufacturing module can help your production process in a variety of ways.

Subassemblies can be used to generate and manage complicated bills of materials with multiple layers.
Due to the connection of manufacture orders, work orders, purchase orders, and sales orders in a unified workflow, shop floor management has been optimized.
The final cost of a product can be estimated by taking into account the cost of the materials used as well as other costs like labor, electricity, etc.

Retail management

Manufacturers probably don't need sales management tools as much as retail and eCommerce companies do. For instance, synchronizing your shipments and automatically updating stock levels after things are sold across several channels (in-store, via your website, via online marketplaces, etc.) is possible when you enable multichannel sales.

Product bundling is an additional helpful function. The IMS must specify the availability of each component and revise inventory levels after the kit is sold if you allow buyers to mix and match products to build a custom combination.

Make sure your IMS offers override options if you backorder items or have dependable suppliers with strict lead periods. In this manner, even if the system indicates that you are out of

Analytics and reporting

Knowing exactly how something works is a prerequisite for improving it. For a complete image of your business and an understanding of what needs to be optimized, performance must be closely monitored. You may pinpoint your shortcomings and change your approach as necessary by gathering and evaluating data from various modules and departments.

You can construct a variety of reports connected to inventory with the IMS, such as incoming stock reports, location reports, inventory value reports, etc. You may monitor your suppliers, follow metrics for manufacturing efficiency, create sales reports, and much more. You can also examine the status of your orders and shipments.