A survey stated 91 of 100 people are saying that they aren’t happy with their inventory management practice. When they were asked for the reason 50 of the businessman said they are cheated from the inventory manager itself.
To which they were back with a loss of manager too. Left 41 people stated they found inventory a confusing task and left the idea of taking their business online.
Somewhat they were facing a hard routine. Glancing at this issue experts came up with a solution named WooCommerce inventory management plugin.
Upon launching these plugins, a survey again was made and this time 95 of 100 people said online business is just a game.
So, try out the plugins today by viewing the alluded anchor text. Not only that but also read till the end what inventory management is. Let’s hear out the ruble…
What is Inventory Management?
A manner to which you source out, store, and sell your inventory might be the raw material or manufactured goods in a systematic manner.
Inventory management means the right stock, at the right place, at the right time, at the right levels, and at the right cost as well as price.
Entrepreneurs, founders, and independent brands now live in a native commerce world, where small-to-medium businesses compete against a global conglomerate.
We’ve put together this definitive guide to inventory management to help level the playing field and develop your brand with speed, scalability and smart battles. You need formulas ranging from inventory control basics to best practice and advanced automation processes.
A Simple Definition to Inventory Management
As a part of your supply chain, inventory management includes aspects such as controlling and overseeing purchases from suppliers to customers as well – maintaining stock storage, controlling the amount of product for sale, and orders. Supply.
Naturally, the exact inventory management of your company will vary depending on the type of products you sell and the channels you sell. But as long as those core elements continue to exist, you’ll have a solid foundation to build on.
Well, we all know that each and every SMB’s decades before used the Excel, Google Sheets, and many other manual tools to keep track of their records and make decisions about the order placement.
Although, the thing is that the business manager must know when to order | when to reorder, how to order | how to reorder and where the stock is to apply the same.
With these systems, inventory management processes go beyond basic reordering and stock monitoring, ranging from end-to-end production and business management to demanding metrics, reports, and even accounting forecasts Some include.
All right! But how one will retail inventory management? Let’s understand the same…
Inventory Management for Retail + Wholesale
Retail is the most comprehensive catch to describe business-to-consumer (B2C) sales. There are essentially two types of retail as to how and where to sell.
- First, online retail (eCommerce) where shopping takes place digitally.
- Second, offline retail was shopping through a brick-and-mortar storefront or vendor is physical.
But, if we look for the Wholesale market then it refers to the B2B selling. Well, it is not a doddle to understand the difference between the retail and wholesale markets.
Most businesses maintain stock across multiple channels as well as multiple locations. The diversity of retail inventory management adds to its complexity and houses its importance for your brand.
More likely, now we are at a point in which we should learn the importance of inventory management.
Inventory Management Importance in 2020
It is not possible to state the value of inventory management for any good based online store. Especially for those which are connected to the eCommerce platforms.
Not only that but also the SMB’s and big companies are needed for the inventory management plugins and they even are using ERP with a smart approach.
From a product point of view, the importance of inventory management lies in understanding what stock you have, where it is in your warehouse, and how it is coming in and out.
Clear Vision Succor You Out With Understanding Better!
- Costs Reduction.
- Fulfillment of the Order.
- Customer Service at Best Level.
- Theft, Spoilage, and Returns Loss Prevention.
In a broader context, inventory management provides insight into your financial situation, customer behavior and preferences, product and business opportunities, future trends, and more.
Types of Inventory Management
To be known to every business, inventory management comes with 4 types, mentioned as follows:
- Raw materials,
- Work-in-process,
- Finished goods, and
- Maintenance, repair, and operation (MRO) goods.
Let’s elaborate on them in short…
- Raw Materials: Raw materials are any items used to manufacture components or finished products. These can be items produced directly by your business or purchased from a supplier. For example, the candle making business may purchase raw materials such as wax, wicks and decorative ribbons.
- Work-in-Process: Works-in-progress refers to incomplete items to move through inventory production but is not yet ready for sale. In the case of the candle making business, a work-in-progress list may be candles that are drying and unpacked.
- Finished Goods: Finished goods are products that have completed the production process and are ready to sell: candles.
- Maintenance, Repair, and Operation (MRO) Goods: Maintenance, repair, and operation (MRO) goods are used to support and facilitate the production of finished goods. These items are commonly used as a result of the production process but are not a direct part of the finished product. For example, disposable molds used to manufacture candles would be considered MRO inventories.
As you see below, there are other terms such as “theoretical inventory” and “pipeline inventory” that are used to describe the types of stocks based on their theoretical purpose and usage. However, physical inventory almost always falls into one of the above four categories.
Formulas to Which Inventory Management is Made!
If you are new to inventory, you will likely come across lots of formulas that may seem confusing at first. But don’t worry with a little knowledge, you can learn out these formulas easily and too can optimize your stock very easily.
Here is an overview of some of the most common list sources …
- Safety Stock.
- Reorder Point.
- Economic Order Quantity.
- Days Inventory Outstanding.
Last but not least, in order to learn about all these formulas just reach out to our official website where you will find all the functionality. Now, let’s conclude out the complete stuff…
Wrapping Up
Having a business is not easy these days but knowing about the inventory can make this too easy for you to wrap out the complete online store comes with the selection of inventory management system.
Now, you might be looking for a system that can manage your stuff. Don’t worry go along with the alluded text: WooCommerce Inventory Management! Following out this link will take you to the numerous plugins which are best at managing your inventory.
Well, this blog makes you learned all about inventory management. Finally, if you found the blog informative then do share and comment below.
Although, if you come up with questionnaires then to comment on the same. For sure, our experts will get back to within no matter the time and will try to answer all your queries.