{"id":15361,"date":"2021-05-16T06:20:12","date_gmt":"2021-05-16T06:20:12","guid":{"rendered":"https:\/\/www.openbusinesscouncil.org\/?p=15361"},"modified":"2021-05-16T06:20:55","modified_gmt":"2021-05-16T06:20:55","slug":"what-an-inventory-management-system-can-do-for-your-business-goals","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/what-an-inventory-management-system-can-do-for-your-business-goals\/","title":{"rendered":"What an Inventory Management System Can Do for Your Business Goals"},"content":{"rendered":"

Are you using an inventory management system for your business right now?<\/p>\n

If you aren\u2019t, you should opt to get one as soon as possible. The things that an inventory management system can provide are of high value for your business, regardless of its nature or size. Without proper management, you\u2019ll frequently find yourself in hasty situations such as losing business because some items went out of stock, or worse \u2013 losing the hard-earned money because you have too much stock.<\/p>\n

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Every company these days needs to keep track and record of inventory, track profits and sales \u2013 and basically keep up with the demand. This is all made possible with the right system.<\/p>\n

What is Inventory Management?<\/h1>\n

Inventory management is a process, a technique that allows you to store and properly keep inventories to boost the success of your business. Investopedia<\/a> defines this as follows:<\/p>\n

\u2018\u2019Inventory management refers to the process of ordering, storing, and using a company’s inventory. This includes the management of raw materials, components, and finished products, as well as warehousing and processing such items.\u2019\u2019<\/p>\n

Effective inventory control gives you continued access to vital information for the company\u2019s daily operations. You\u2019ll know what amount of products you have, whether you need to stock up or replenish items to sell the desired amount \u2013 and reach your desired goals.<\/p>\n

Understanding inventory accounting<\/h3>\n

Businesses need to keep track of their inventory at all times. When it comes to inventory management, there are four main categories<\/a> that the process must include:<\/p>\n

1.\u00a0 \u00a0 \u00a0 Raw materials<\/h4>\n

These are the materials you purchase intending to transform it into a ready product i.e. finished goods.<\/p>\n

2.\u00a0 \u00a0 \u00a0 Work in progress<\/h4>\n

Any process that goes between raw materials and their transformation into finished goods belongs in this part. This includes all steps and processes, techniques, and methods used to make things happen.<\/p>\n

3.\u00a0 \u00a0 \u00a0 Finished goods<\/h4>\n

When you reach this point, you\u2019ll have completed goods ready to be sold on the market.<\/p>\n

4.\u00a0 \u00a0 \u00a0 MRO goods<\/h4>\n

Finally, inventory management includes keeping track of maintenance, repair, and operation goods. These are the items used to support the finished goods\u2019 productions as they are purchased.<\/p>\n

Choosing the right inventory management software for your business: Lightspeed<\/h2>\n

According to Lightspeed, the currently best-rated inventory management software<\/a>, there are 3 main things that such an investment can do for you. They include:<\/p>\n