Inventory

4 Tips To Better Manage Inventory Management For A Large Enterprise

One of the most crucial parts of a business that specializes in product manufacturing or repair requires the use of inventory.

One of the most crucial parts of a business that specializes in product manufacturing or repair requires the use of inventory. Inventory, in simple terms, refers to the storage capacity the businesses have for any particular product, raw material, maintenance and repair supplies, etc.

The inventory size depends on the business type, i.e. the larger enterprise would possess a larger inventory than a smaller business. The complexity of handling the inventory increases with its size. Let’s go through what inventory management is while also discussing the different ways through which large businesses can manage inventory more smoothly to increase business productivity.

What Is Inventory Management?

Inventory management is an integral part of any large-scale business. It’s how physical and tangible raw materials and end products are stored, ordered, and shipped. Through it, businesses can streamline product related processes, and It helps keep track of orders and finished products.

Inventory management describes the state of inventory through which business owners can make better decisions. Today with the integration of technology, the process has been further optimized. The introduction of newer technology forms such as barcodes, cloud-based technology, and POS has streamlined the management process.

What Are The Types Of Inventory?

Inventory management not only deals with managing goods and products but refers to the overall product, supplies, and goods a business possesses. To clearly explain the management of inventory, first, let’s go through the different items kept in the inventory, and how are they classified:

Product refers to products that the business creates and has sorted, ready to be shipped or delivered.
Raw Materials include materials that are primarily used for manufacturing the end product.
MRO includes all items and materials kept for repair and maintenance in the business.
In-Transit Goods include materials shipped and delivered to those who bought them.

What Should You Do To Better Manage Inventory?

The size of a business has an impact on the inventory. Small inventories would have lower storage spaces, which would be manageable through simple tools. However, business growth affects the inventory and its management process. Its management becomes more complex with the increasing inventory size.

The business has to use different tools and adapt processes to keep the inventory in check. Let’s take a look at the different ways through which large-scale businesses can better manage their inventories.

1. Consider Inventory Prioritization

Products prepared by a business often don’t have the same buying rate. Some products are bought quickly, while others could take days to get off the shelf. Inventory management should focus on these aspects and prioritize the different products into groups. This is done by separating items according to their need.

This segregation could increase the efficiency of product manufacturing. Items sold quickly would have a faster production rate, whereas items that take time to sell would be produced slowly. This would help finance and tell how much raw material is needed to make them.

2. Store And Track All Information Of Products

Inventory management shouldn’t only focus on a product made and kept, but it should also consider in-transit products. The business should record and store sold item information using information handling systems like barcode technology.

Product information tracking is an efficient way to measure trends for different sold products as it helps in understanding what factors play towards changes in cost. It also helps in pricing strategies and to determine the prices of new products.

3. Have A Routine Audit Of Your Inventory

Businesses require proper checks and balances to ensure their accountability, and the same goes for inventory as well. Businesses can have different points at which they do audits. Most may consider it after a year, while others could do it on a quarterly or monthly basis. The frequency of audits depends on the nature and size of the business.

A regular checkup system is required to ensure that the business has the same number of products and items as it had estimated. Routine audits can also help find weakness or flaw in the business that requires a fix.

4. Optimize Inventory Management Through Software Solution

Inventory storage can help when making crucial business decisions. As the complexity and size of a business increase, so does the time to manage inventory. Businesses with no proper inventory control could face failure and losses. It’s estimated that $1.8 trillion are lost annually due to improper inventory control and management.

As there is no control over complexity, an inventory management software solution can help perform these tasks. You can find different types of software solutions that specialize in inventory management for different niches. You should focus on what you need to manage when investing in software solutions.

Get Inventory managing Software Solution From AltheaSuite

Now that you are aware of the significance of inventory management and how to manage it, why not consider our software solutions that help in inventory management and streamline other business processes as well?

AltheaSuite is an all-purpose solution software offering services for POS, order and delivery management software, CRM, cloud based inventory management system, etc. We offer our services to leading clients in industries such as furniture, manufacturing, machinery textiles, and e-commerce. Contact us today and book a demo to see how our innovative solutions support your business processes.