Inventory management is part of the branch of management and cost accounting based on the proper management of the recording of purchases, receipts, availability and issue of inventory. This involves establishing strategies for proper control of inventory turnover and availability to meet consumer demands.
But how do we know if we are having a healthy, nourished and controlled inventory management in our company or shops? To do so, our inventory must have:
Registration Methods
Every company must have the right method of record keeping. Today, many companies are run under registration systems that provide label and code functions for the available goods that come into our warehouse.
Rotation Point
These back-office systems rely on the measurement of our inventories. Therefore, it is necessary that the management system used can keep a careful record of them for their availability and location within a warehouse or shop.
Re-inventory Model
These inventory management systems should have a report of those products that are in short supply in the shop and need to be replenished to meet the demand.
Some inventory indicators that will help us measure the performance of the strategies we have implemented to manage it:
- Inventory Turnover
Indicates the number of times the inventory is moved in a period (1 reference year).
- Inventory Price
Define the total value of your goods in a warehouse. If the inventory is owned and the higher the value, the higher your leverage and waiting to be profitable. On the other hand, if it soars, you are at risk of liquidity problems, which suggests that you are not making enough sales.
- Merchandise Available
The total of what is held in the warehouse in goods, the indicator will measure how much is held for use.
- Goods out of stock
Measuring how much stock you do not have available in your warehouse determines how much you need to stock in a given period of time. This allows you to know and measure the demand for your products and make sure you always have them in stock.
- Stock coverage
Covering your goods allows the company to have enough to cover the days needed, until the new batch of goods arrives.
For example, if your warehouse is running low on cleaning supplies and your supplier does not deliver these items in a timely manner, your current stock should cover the days it takes to get the goods restocked. This helps to cover the demand versus the days it takes for the supplier to get the goods to your warehouse.
- Inventory Cost
These costs are the value of managing the warehouse or warehouse; be it labour, rents, facilities and everything involved in managing the inventories that we will have in the warehouse.
- Inventory Purity
This is what the company has in inventory without any surplus or spoiled products, i.e. goods that are in good condition.
- Obsolescence
The type or group of goods that are ageing in a warehouse, either because they are not moving or have received no inflows or outflows; in other words, they are stagnant goods.
We can mention other indicators that help to measure our management, but each company will use the strategy that best suits it to manage its stores and meet the demand of its consumers.
InterFuerza has, included in its system, functions to provide its customers with the possibility of efficient inventory management, from the registration of the purchase of goods to their sale. The data from this process is displayed in the form of reports so that you can apply the indicators and measure the profitability of your products and sales. With InterFuerza you will have statistics on inventory movement and sales, visualising which products are moving or are most in demand in your shops.
The mission of InterFuerza is to accompany its clients in the healthy growth of their companies, providing support and guidance for the proper use of the system. In this way you will be able to adapt the functions offered by InterFuerza to the needs of your company.
