Inventory Management Information
Inventory management software is a computer-based system for tracking inventory levels, orders, sales and deliveries. It can also 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 database used for storing and administering all types of data required for efficient and accurate warehouse inventory management. This may include modules or fields for keeping track of all items and locations, requisitions, back orders, required levels of inventory on hand, reorder points, lead times, inventory error tracking, and more. This type of system may interface with an ERP and other applications. The objective of inventory management is to provide uninterrupted production, sales, and/or customer-service levels at the minimum cost. Since for many companies inventory is the largest item in the current assets category, inventory problems can and do contribute to losses or even business failures. Also called inventory control. You should have great inventory management so that you know where everything is and can locate it when you need. What system challenges are involved in inventory management? One challenge involves conflicts or breakdowns in communication in getting two operating platforms to speak to one another. For example, our inventory is our customers’. Synchronizing our software systems with theirs, the customer accesses all product descriptions and quantities with a few clicks of the mouse. Inventory management is the supervision of non-capitalized assets (inventory) and stock items. A component of supply chain management, inventory management supervises the flow of goods from manufacturers to warehouses and from these facilities to point of sale. A key function of inventory management is to keep a detailed record of each new or returned product as it enters or leaves a warehouse or point of sale. Inventory control, a similar term, is the area of inventory management that is concerned with minimizing the total cost of inventory while maximizing the ability to provide customers with product in a timely manner.
Types of Inventory Management Information System:
- Raw materials
- Work in Progress
- Finished Goods
- Service inventory
- Maintaining a balance between too much and too little inventory.
- Tracking inventory as it is transported between locations.
- Receiving items into a warehouse or other location.
- Picking, packing and shipping items from a warehouse.
- Keeping track of product sales and inventory levels.
- Cutting down on product obsolescence and spoilage.
- Avoiding missing out on sales due to out-of-stock situations.