A computer-based system for tracking inventory levels, orders, sales and deliveries can be used in the manufacturing industry to create a work order, bill of materials and other production-related documents. Companies use inventory management software to avoid product overstock and outages. It is a tool for organizing inventory data that before was generally stored in hard-copy form or in spreadsheets.
A complete Inventory Management Control system contains the following components:
- Inventory Management Definition
- Inventory Management Terms
- Inventory Management Purposes
- Definition and Objectives for Inventory Management
- Organizational Hierarchy of Inventory Management
- Inventory Management Planning
- Inventory Management Controls for Inventory
- Determining Inventory Management Stock Level
Inventory Management Public Warehousing
This tool is designed for public warehousing to handle complex charges with ease while providing the inventory control needed by warehouse owner operators.
Inventory Management For Manufacturing And Distribution
This version of Software is designed for manufacturers and distributors. Sales orders may be entered with multiple line items having multiple delivery requirements.
There are several advantages to using inventory management software in a business setting.
In many cases, a company’s inventory represents one of its largest investments, along with its workforce and locations. Inventory management software helps companies cut expenses by minimizing the amount of unnecessary parts and products in storage. It also helps companies keep lost sales to a minimum by having enough stock on hand to meet demand.
Inventory management software often allows for automation of many inventory-related tasks. For example, software can automatically collect data, conduct calculations, and create records. This not only results in time savings, cost savings, but also increases business efficiency
Inventory management software can help distributors, wholesalers, manufacturers and retailers optimize their warehouses. If certain products are often sold together or are more popular than others, those products can be grouped together or placed near the delivery area to speed up the process of picking, packing and shipping to customers.
Up-to-date, real-time data on inventory conditions and levels is another advantage inventory management software gives companies. Company executives can usually access the software through a mobile device, laptop or PC to check current inventory numbers. This automatic updating of inventory records allows businesses to make informed decisions.
With the aid of restricted user rights, company managers can allow many employees to assist in inventory management. They can grant employees enough information access to receive products, make orders, transfer products and do other tasks without compromising company security. This can speed up the inventory management process and save managers’ time. Insight into trends
Tracking where products are stocked, which suppliers they come from, and the length of time they are stored is made possible with inventory management software. By analysing such data, companies can control inventory levels and maximize the use of warehouse space. Furthermore, firms are more prepared for the demands and supplies of the market, especially during special circumstances such as a peak season on a particular month. Through the reports generated by the inventory management software, firms are also able to gather important data that may be put in a model for it to be analyzed.