Inventory management is the science of dealing with the inventory or stock efficiently. The Inventory or stock management is a comprehensive approach to manage each and every minute stock or inventory movement along with associated aspects. To dexterously manage inventory in any business is a challenging task but if well executed, it contributes to the enhanced productivity at reduced business costs. To ease the burden of business owners and stakeholders, various inventory management software are available suiting the budget and automation needs of the enterprises.
Inventory management and control involves the under-listed functions that could be the must-have features in a competent inventory software:
- Suppliers: The details of all suppliers associated offering the raw material of the semi-finished goods required for production must be managed effectively. Quotations, item prices and supplier performance must be administered well for effective upkeep of inventory control.
- Purchase or Procurement: All purchases must be recorded readily. Procurement or purchase of stock with processed purchase orders is the base function for all inventory operations.
- Stock Transfers: Any stock transfer to the warehouses with essential details is must to be recorded. This helps to track the stock quantity in the warehouses and to maintain the current stock balance on hand at current location.
- Stock Transactions: All stock transactions including the stock issues to various departments for production along with any stock returns with appropriate details must be captured in the system. This ultimately provides a clear picture of the stock position.
- Barcode Management: With computerization of almost every process and thing, the barcode is the best way to uniquely identify an item. A sound inventory management allows the barcode management and also enables barcode integration with the system as well.
- Reorder Level Management: Reorder level must be evaluated so as to prevent the inventory go out of stock and avoiding production halts. The stock must be ordered well in-time to eliminate any stock crisis issues in the business.
- MIS: MIS or Management Information System refers to an array of useful reports that provide analytical data thereby allowing the administration to take efficient decisions contributing to enhanced business productivity.