How a ROI driven Inventory management system can transform the entire supply chain process
We often stumble across the term inventory management whenever we talk about supply chain, but have you ever wondered as to how important it is and the role it plays in the success of a company? To begin with inventory is the stock of goods like raw materials, work in progress materials and finished goods which have not yet been sold, the product-based company sells them to earn a profit.
Inventory Management is a process in which the company has to manage the inventories starting from the procurement of raw materials and its warehouses, it continues to the outflow of raw materials or stock to reach the manufacturing units or markets respectively. Some of the Objectives of Inventory Management are:
- Preventing dead stock or perishability
- Optimizing storage cost
- Maintaining sufficient stocks
- Enhancing cash flow
- Reducing the inventories cost value
While Inventory Management System is the means of organizing all the elements that go into inventory management. It’s the method by which you track goods from one end to the opposite along your supply chain. Ensuring throughout that you know what you have, where it is, and how to manage it. It is the mixture of technology (hardware and software) and processes and procedures that oversee the monitoring and maintenance of stocked products, whether those products are company assets, raw materials and supplies, or finished products able to be sent to vendors or end consumers
Organizations from small to large businesses can make use of inventory management to trace their flow of products . There are numerous inventory management techniques, and using the proper one can cause providing the right goods at the right amount, place and time. Inventory management software go several layers deep and integrate with accounting and enterprise resource planning (ERP) systems. The systems keep track of products in inventory, sometimes across several warehouse locations. Inventory management software can also be used to calculate costs which always have an accurate assessment of the value of the goods. Some inventory management software systems are designed for giant enterprises and may be heavily customized for the actual requirements of a corporation .
Now that we have understood as to how necessary an inventory management system is, let us look at how the efficiency of a company is affected due to its poor functioning. Bad inventory management can cost a company tremendous amount of time, money and heavily impact any business’ organizational performance, leaving it with lackluster profit margins and elevated overhead expenses as a result.
To not let your company be affected by poor Inventory Management System, we at Redian have solutions for you.
- We offer cloud based and on-premise Inventory Management System.
- Our Inventory Management Systems are configurable as per the customers’ demands.
- We have domain expertise in Inventory Management Solutions.
- Our Inventory Management Solutions are futuristic and long-driven solutions which will enable our customers from over-spending on effective solutions