Support Your Growth with Powerful INVENTORY MANAGEMENT SOFTWARE by Prosoftly
What is Inventory Management?
We can define inventory management as planning and controlling stocks in order to meet the competitive priorities of an organization. Effective inventory management is essential for any supply chain to perform robustly. It is essential to find the right balance between reducing the amount of inventory to keep the costs down and keeping too much to meet potential demand. This balance ensures that the business reaches its competitive priorities most effectively.
Purpose of the Inventory Management
Inventory management includes the control and storage process of the products or assets. We can explain them as the enterprise produces to sell in order to carry out its activities. The purpose of this management is to increase the profit rate of the company. Therefore, it aims to determine the stock level by minimizing inventory costs, maximizing the customer service quality and producing high efficiency production. Additionally, enterprises want to determine the amount of economic inventory suitable for the structure of their businesses. And, also they want to keep it at the same level by taking into account the conditions such as finance, production management, purchasing management. This includes a wide range of control and inspection management, covering the process of procuring raw materials and semi-finished products, loading, unloading, storage of products and shipping of finished products.
Inventory Management Across the Enterprise
Stocks require capital investment, and money invested in stock does not allow investing in anything else, therefore, they lead to contractions in the organization's cash flows. Having too much inventory reduces profitability. On the other hand, keeping too little inventory creates gaps in the supply chain and ultimately undermines customer confidence. Inventory management is finding the right balance between the two.
Why Inventory Management?
The right inventory management software will help the businesses to control their life cycle, to ensure their continuity, to benefit from maximum inventory with minimum expenditure, to reduce expenses and to make a profit.
Within the scope of Inventory Management, it is the basis of Inventory Management to provide maximum benefit with the optimum manpower. And, this is a result of the analysis of inventory life cycle processes within the organization with expert consultants and automation of Inventory Management through the right inventory application software.
Why Does Your Company Need an Inventory Management System?
With a flawless warehouse and stock management, you can provide reliable information for planning to your business and help you improve all your processes from production to shipment. In this way, your hand will be stronger in the competition. Moreover, miscalculated inventory costs or inventory losses are annoying for every business. In addition to factors such as the location of the warehouse, shelf and barcode systems, inventory management, an online inventory management program that you use is also important for effective stock management.