Many business owners think that inventory management is a no-brainer. You just have to track the products that come in and track the ones that go out, right? Unfortunately, managing your inventory isn’t that simple. It’s a difficult task that involves foresight and accuracy. Otherwise, you’d spend a huge chunk of your working capital on shipment delays, excess inventory, etc. Related Post: Best Inventory Management Tools for Small Business Owners Having an efficient inventory management strategy is the key to having a successful supply chain. But with different types of inventory management systems, how can you choose the most suitable strategy for your business? 4 Different Types of Inventory Before we dive into the inventory management strategies, understand that there are different types of inventory.
MRO Goods: MRO goods pertain to
Maintenance, repair, and operating supplies. This type of inventory pertains to the items that are necessary for operations like equipment and machinery, raw materials, and other items needed to maintain infrastructure and equipment. Other examples of MRO Israel Phone Number List inventory include janitorial supplies (mops, brooms, uniforms, gloves, cleaning solutions, etc.) and office supplies (pens, printers, ink, etc.). Raw Materials: Raw materials are items used to manufacture your products like nuts and bolts, chemicals, paper, steel, and other items. Work-in-Progress (WIP): WIP inventory isitems that go under processing, such as raw materials, and other components that go through a manufacturing process to produce your finished product.
Once the WIP inventory goes under processing
They become finished goods. Finished Goods: These products that have undergone processing and are ready to be sold to final customers. Also Read: Why Your Business Should Adopt Cloud-Based IT Services. 3 Types of Inventory Management Systems Now that you know Fax List the different types of inventory, here are three different ways to manage them. 1. Manual Inventory Management System Inventory Management Small businesses and startup companies that carry low levels of inventory usually track their inventory manually. With the manual inventory system, an employee goes through all your inventory, counts all the items, lists down the results, and enters the data in a spreadsheet.