Inventory Management-Crucial Factor of Business Growth
Before studying inventory management one should know what the word inventory means. The word inventory is derived from a French term ‘inventaire’ which means a detailed list if goods. Inventory can be assumed to be a list of materials and goods that are made to be available in a stock by any business. Inventory is not limited to a business only; this term also denotes a list of contents of any household for testamentary purposes of a dead person’s possessions. In accounting the word inventory means an asset.
Inventory management involves the controlling of assets that are being produced for sale keeping intact the normalcy of the company’s day to day operations. Minimizing the total direct and indirect cost is the primary goal of the inventory management. However, the extent of investment is the main criteria upon which the importance of inventory management actually depends.
It is found that it is highly complex when inventory management is implemented to manufacturing environments, but inventory management has always the fundamental principles on its side. Inventory management and planning must always respond to the requirements of the firm or the individual concerned. The organization should design appropriate systems that can help it to make proper decisions and generate the regular business reports.
To manage the inventory one requires the inventory management software that can assist your organization to manage the inventory accurately, reduce holding, FIFO control and to trace the items in detail. The inventory management software is basically a Warehouse Management System (WMS) and it comprises barcode labeling and detail Bin Management with scanning capability. It helps the storekeepers to pick & put their stocks in a more accurate and efficient manner.
For optimal management of inventory, one needs robust functionality so as to manage the logistic facilities. The management software provides support to the inventory management processes there by helping to record and track materials both in quantity and value.
About the Author:Paul Benjamin is a freelance writer on ecommerce. He has written articles and blogs on eCommerce solutions, CRM applications and Inventory management.
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