Inventory is one of the main assets in the balance sheet of any company, effective inventory management control needs to track the available stock very accurately in both accounting records and physical inventory, which helps in making decisions about purchasing inventory and keeping available stock at the optimum level that meets demand Inventory better, and in order for the company to enhance its inventory management control, it must evaluate the quality of inventory over time to ensure that it is storing the correct inventory, and in this article we will show you everything you need to know about how to process inventory management, and upgrade your warehouse capabilities or improve inventory control
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Inventory management is a process that companies go through in order to ensure that their inventory is maintained at an optimum level, starting from purchasing inventory, storing it, and then using it in the best way, leading to ordering more when the inventory begins to expire.
Inventory Management Process
It refers to the process by which the monitoring and supervision of the procurement process can be carried out, which helps in facilitating your operations, increasing investment returns and also reducing the cost, but in order to achieve all of this, you need to use specialized process management programs, which are mainly aimed at improving And simplify operations for your inventory and warehouse.
How to improve inventory control
There are a number of methods that will, of course, help you improve inventory management control, the most prominent of which are:
1) Updated accounting records to improve inventory management control
The updated accounting records of the inventory account are one of the primary factors in improving inventory control, and they are also necessary to manage and control inventory, and there are two types of inventory that companies use to keep their inventory records, and they are:
- A perpetual inventory system, in which purchases and uses of inventory are recorded directly in the inventory account as pros and cons respectively, allowing businesses to easily access stock information.
- The periodic inventory system, in which a separate purchase account is used to record inventory purchases and the inventory account shows only the starting or ending balance. We note that the periodic inventory system needs a physical inventory of the final inventory to help determine the amount of inventory used during the period
2) Physical inventory to improve inventory management control
Physical inventory helps effectively in improving inventory management control, and it is also an important measure to improve inventory management monitoring, because usually actual stock losses due to theft or waste are not recorded in the stock accounts at the time they occur, so the physical inventory helps in detecting the potential difference between The amount of on-hand stock available and the amount of inventory recorded in the stock account, thus there is no misleading in monitoring stock management.
3) Determine the optimum level of inventory to improve inventory management control
The first goal of monitoring inventory management is to determine the optimal level of inventory while also maintaining it, and this leads to reducing the costs of maintaining inventory, and thus saving part of the investment capital, and by determining the optimal level of inventory, companies will avoid exposing their inventory to deterioration or obsolescence, as well as avoid increasing costs.
4) Ensure inventory quality to improve inventory management control
An appropriate inventory quality assurance and evaluation system helps to improve inventory management control, because it allows storing balanced quantities of different stocks, thus avoiding any potential losses in sales.
How to upgrade your warehouse capabilities
Upgrading your warehouse capabilities helps you ensure fast and accurate shipping, thus obtaining customer satisfaction, as well as saving time and costs, thus increasing the level of profits, and here are a number of tips that will help you upgrade your warehouse capabilities:
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1) Maximize the use of available space
A large number of producers tend to expand their warehouse space, but the best is to make better use of the available vertical space, which helps you in adding more storage units in the same space, thus saving more space and accommodating more units.
2) Adoption of enabling technology
A warehouse management system (WMS) or an enterprise resource planning system (ERP) with a WMS module helps in improving warehouse efficiency by proposing the best selection or stop method.
The system will also provide automated checklists that can be sent to readers and mobile devices to help eliminate errors and reduce wasted time and paper.
The use of radio frequency or barcode recognition (RFID) readers can also help improve transaction accuracy and reduce picking errors, thus enhancing your warehouse capabilities.
3) Organization of work stations
Organizing workstations helps in improving productivity because workers do not have to search for tools or equipment, as it includes all technologies designed to prevent clutter, reduce errors, improve safety and organization, thus upgrading the capabilities of your warehouse
In general, improving warehouse efficiency is related to common sense and appropriate storage equipment, along with appropriate selection algorithms as well, all of this will help you increase the efficiency of your warehouse.
Inventory management software
The inventory management program supports the sharing of business insights and product details, as it ensures the availability of all products that customers turn to, which positively affects productivity and business benefits, through that program you will be able to sort products and create a space for upcoming popular products.
The inventory management program provides support for managing businesses and all their operations in a responsible and effective manner, as well as ensuring product quality, in addition to its role in enhancing customer services.
How can inventory management software help improving inventory control?
Most organizations use inventory management software to monitor the required products according to the customer’s request, and the inventory management software can effectively help you in improving inventory management, because the inventory management software is also linked to the accounts and management department in the organization and provides you with smooth and efficient operations, and here is how the inventory management program can help you Inventory management in improving inventory management:
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1) Manage inventory orders
The inventory management software enables the company to track the required products and order them according to the customer’s request. It automatically tracks the real-time availability of the required product in the inventory, and it also creates an order for good selling items.
Through the inventory management program, the company will be able to know the products that are most sold and in demand, and that program will also maintain all records of the organization, which contributes to achieving customer satisfaction.
2) Business revenue
Inventory is a major factor in generating revenue and profits for the company, so inventory management software is important for sharing real-time statistics and all information quickly, and that information is not only limited to the availability of inventory but also includes details of revenues and profits, which enables the business owner to review all expenses And profits.
3) Price management
Inventory management software plays an important role in the price management process, because inventory management software helps in finding the best deals in the market available, which will help you to buy items at a lower price. If you buy a large amount of products, the lower price products will give more benefit.
Also, the inventory management software tracks the cost of products from the purchase details, and it can also generate comprehensive reports with a few clicks, and those reports will help you refer to the low-priced sellers, thus ensuring the purchase of large-volume inventory at a low price that provides the consumer at a good price.
4) Track inventory turnover
Inventory management software helps in tracking inventory turnover easily, allowing the business owner to acknowledge the sale of his products and the quantity of the order, in addition to helping to maintain selective inventory with the most selling owner, thus increasing revenues.
5) Trend analysis
Inventory management software provides in-depth trend analysis, which management can review and identify the most selling products, as well as clarify which sales will be most in demand in the coming seasons.