Tracking and securing inventory is a major role that needs to be
performed in any enterprise. This is equally valid in case of both unfinished
as well as finished goods. A mismanaged unfinished goods inventory is bound to
have a negative impact on the supply chain by bringing the manufacturing
process to a halt. On the other hand, the unavailability of finished goods can
result in customer dissatisfaction, affecting both the company’s goodwill as
well as customer loyalty. Similarly, an overstocked inventory also leads to
major losses for the business’ bottom line.
Contrary to common perception, companies dealing in the manufacturing and
supply of goods are not the only ones that need to keep an inventory. Even
service-oriented ones are sure to have some sort of inventory, even if it is
for something as basic as office supplies. By keeping an inventory, companies
can stock a cache of items, which comes in handy in case of unexpected supply
chain hold-ups or any other time lag. This ensures that the business continues
to function smoothly under all conditions.
Having a large-volume inventory helps to improve the efficiency of any
enterprise significantly, since this is more economically-viable than
purchasing single items only when needed. By having a dedicated inventory handling
strategy in place, companies can save on both time and money, leading to better
work productivity. Such a strategy also ensures business security in spite of unpredictable
market conditions. In case of any uncertainties and fluctuations in demand,
supply, and other statistics, a well-managed inventory serves as a foolproof
back-up plan.
Inventory handling techniques are also needed at times of change-overs or
transitional shutdowns, which are inevitable in every business. The buffer
stock allows the functionality of the business to remain intact in crises,
until normalcy is restored. In addition to this, applying the correct inventory
handling strategies also ensures that inventory excess is utilized in the best
possible way.
Inventory management systems are designed to automate the complete
process of inventory handling, eliminating the need of a dedicated workforce
for the purpose. These systems are essentially based on an IT solution, in
which industry-specific software can be applied to handle the complete
inventory. The user-friendly interface in such software makes it possible for
employees at each stage of the supply chain to view the data, which is updated
in real time. This leads to streamlined functionality, as well as minimized
risk of errors.
