"Inventories" include raw materials, work in process, consumables, and finished products. It has associated costs that can be classified as ordering costs and holding costs.
Modern inventory management practices encourage keeping quantities that meet today's needs – inventory managers will tell you that it's not wise to keep large quantities in inventory. You can find the best cloud based inventory management at https://www.cin7.com/features/b2b-online-stores/.
In most situations, a certain level, or optimal level, needs to be maintained to meet production or business requirements. Max Mueller, the author of Essentials of Inventory Management, says it is an art to manually control inventory as a physical object (number of shelves) and as an intangible object (number of records and monetary value).
Why should you care about inventory management? Inventory is money and its management plays an important role in an environment where the company suffers from poor cash flow or has no control over the electronic transfer of information between departments and suppliers, deadlines, and the quality of materials received.
Obtaining and maintaining inventory is necessary to manage predictability, demand fluctuations, unreliable deliveries, price protection, buffers or safe quantities, stock or products expected in transit. Cloud computing approaches have the added advantage that they lower IT costs by eliminating administrative processes.
Available inventory management tools have analytical and optimization techniques, and spreadsheets make it easy to test models and perform what-if analyses.
Warehouse managers who handle extensive conversions prefer software. Independent and specialized management and optimization software are very popular, although there are modules for inventory and supply chain management in general ERP systems. We know inventory control is critical to avoiding losses and our team has developed inventory management software to help you manage your inventory effectively.