Read Time: 3 mins

Inventory management software small businesses are the way toward getting sorted out and overseeing stock all through the inventory network.

The objective of inventory management is to limit the expense of holding inventory while keeping stock levels predictable and getting items into clients’ hands, quicker. It’s the core of an effective retail business.

What is inventory management?

Inventory Management is the framework you work to coordinate inventory through the supply chain. It covers all means, from raw products to completed goods, storing, and selling. It likewise tracks your organization’s supplied products and screens their weight, measurements, sums, and area.

The objective of inventory management is to limit the expense of holding inventory by helping you realize when it’s an ideal opportunity to recharge items or purchase more materials to produce them. This assists you with keeping up with ideal stock levels and limit costs.

Why is inventory management important?

Viable inventory management is fundamental for guaranteeing a business has sufficient stock available to satisfy client needs. On the off chance that inventory management isn’t taken care of appropriately, it can bring about a business either losing cash on potential sales that can’t be filled or wasting cash by loading an excess of inventory.

Regardless of whether you’re a private venture or organization utilizing undertaking asset arranging (ERP), inventory management assists your business with doing various significant things:      

•  Keep away from the waste

•  Keep away from deadstock

•  Save money on capacity costs

•  Further develop income

•  Streamline satisfaction

Types of Inventory

So, since we realize what inventory management is, we should take a gander at the normal Types of inventory you’ll follow:

•   Raw goods

•   Work-in-progress (WIP)

•    Finished goods

•   Maintenance, repair, and operations goods (MRO)

Raw goods:

Raw goods are materials or substances utilized in the early production or manufacturing of products. Raw materials can incorporate wood, metals, plastics, or textures utilized in the production of completed merchandise. An entrepreneur or maker secures these materials from at least one provider or maker.

Work-in-progress: 

At the point when you utilize immediate and indirect materials production, you should perceive the move of materials into works-in-progress (WIP). WIP portrays an in part completed item anticipating consummation.

On an accounting report, WIP addresses all creation costs: work, hardware, raw materials, and other equipment. It reflects just the worth of items in this creation stage.

Finished Goods:

Finished goods inventory refers to the number of products in stock accessible for clients to buy. When a WIP is finished, it turns out to be essential for the finished goods inventory. 

Finished goods go through a markup, which implies the value they’re sold at is higher than the things set you back.

Maintenance, repair, and operations goods (MRO)

MRO inventory refers to Maintenance, repair, and operations goods. These are materials and equipment utilized in the production cycle, however are not a piece of the eventual outcome.

•  MRO inventory items include:

•   Individual defensive equipment like face covers, gloves, and wellbeing glasses

•   Clearing supplies like sanitizers, brushes, and containers

•   Office supplies like note pads, pens, and tape

•  Tech hardware like workstations, printers, scanners, and that’s just the beginning

•  Lab hardware for any testing and examination to make items

•  Fix apparatuses

Inventory management software for retailers

While numerous private companies begin with the old-fashioned pen-and-paper strategy, this gets inconvenient rapidly—particularly if you have growth goals. Also, it makes you more defenseless against human error, which can lead to an expensive business mistake.

At the point when you utilize incredible inventory software to help you track stock, you gain admittance to benefits like stock alerts, automated buy orders, year-end inventory reporting, and client consents and accounts. Joined, inventory tracking software highlights give you unlimited authority and understanding into your business and how stock moves from suppliers to clients and wherever in the between.

An inventory management system like GOIS, Shopify’s inventory management solution for Shopify Point of Sale Pro, gives you these high-level inventory management features and adjusts with your Shopify store progressively. The best part is it develops with you—so you can scale your business with a tech stack fit for taking care of your inventory now and later on.

Why not try it out for yourself? We, Offer a personalized Demo so you can see just how much Goods Order Inventory can help your business. For more information and a tailored demonstration, please contact us or at sales@goodsorderinventory.com