Inventory management and effective inventory control is essential to every business.
An up-to-date inventory information helps to increase productivity, improve customer satisfaction and capture more revenue in the long term.
Therefore it is highly recommended that your business obtains an effective Inventory Management Software at place.
A well-functioning stock management system helps us to keep stock under control and track its route throughout the transnational operations.
Ensuring the right stock is at the right place, at the right time is critical to manage supply chain volatility.
Stock control system can streamline operations by consolidating all information and giving access to the current and reliable inventory data on hand.
Let us consider now the functions that an organization need in managing inventory efficiently. Some of the most valuable key functions of Inventory Management are:
Barcoding is the most common form of effective inventory control allowing automatic identification for capturing product information.
And to reduce errors and eliminate costs with the help of scanning technology.
It makes inventory control faster and more accurate.
Bar codes tracks virtually everything from retail goods to medical records.
Businesses that sell physical products need a universal product code (UPC) and a bar code for every unique item that they deal with.
These are essential as they help to identify products and convey information about them to distributors and retailers.
An UPC bar code can scan to provide product information to the reseller or even to departments within an organization.
Bar code software and scanning device installed on a computer is able to gather data from the bars.
Also the bar code are design in the series of vertical lines and number formats that represents an unique code for each inventory management.
Thinking of how to get the bar codes.
The first step is to get a prefix for your company from an approved GS1 Company or an authorized re seller.
This unique identification number is license to organization.
And will form part of every bar code and identification number that you create for your individual products.
There is a 12-digit number in a UPC bar code call GTIN (Global Trade Item Number).
The initial digits are reserved for your company prefix and this is followed by the item reference numbers.
Lot or Batch number help companies control their defects in manufacturing and deliver right product at the right time.
Most of the industries rely on lot control to maintain their inventory, the most common of them are food and medical industries.
Managing inventory is important, but managing inventory when you have perishable items is crucial.
Inventory lot control can protect stock from expiring before your customers receive it.
You can assigns a lot or batch number to a group of items that have the same production or expiration date.
The lot number helps the system track the expiration date, weight and remaining shelf life of the grouped items.
Tracking your products in terms of these lot numbers makes it simple to verify that you are sending out the right stock at the right time.
Using this function gives your company full effective inventory control over your lots or batches
Grouping products with batch numbers can help identify which items are used to assemble a finished product.
For example, your company produces cellphones and you find out that the battery is defective.
It will be easier to identify the defective batteries if you know which batch it came from.
This will help mitigate the risk associated with selling faulty products and reducing the number of items you will need to recall.
Product serialization is yet another effective inventory control and is crucial for most of the businesses.
Thus each item assign its own unique number that can differentiate it from the rest of your inventory.
Items that use serial numbers are typically more expensive products, such as jewelry, automobiles, electronics and appliances.
Using serial numbers helps track warranties, trace items, and confirm ownership.
Let us take example of pharmaceutical manufacturers, they are investing in ways to uniquely mass serialize drugs.
And serialize each unit and to register the parent child relationships of units into larger containers, cases or cartons.
The information required here in a serialization program is strongly dependent on the many different national laws and standards.
There are cases of adulterated drugs
Therefore in an effort to combat the risk of counterfeit and adulterated drugs
National regulators have pursued the need for product serialization.
Serial Numbers are also used for process improvements.
Process improvement is the practice of continuously advancing the production of your products.
Serial numbers can improve your processes by allowing your company to find defective products or products in need of repair.
So determine the cause of the defect on faulty products found.
Also make the appropriate process changes to prevent defects from reoccurring.
Process improvements tie into enhancing your organization’s quality control.
And the need to maintain the quality of your product to meet your customers’ expectations.
A Kit is a collection of inventory items package together into a parent item and sold under a parent name.
Kitting helps accurately track order fulfillment and assembly process
And related components combined as a set to make a single SKU or unit.
For example, you might store several computer components together, such as a monitor, hard drive, keyboard, and mouse.
When you sell the items, you sell them collectively as a computer system.
In another example, you might store the same computer components in different locations within a warehouse.
By entering the items as kit components, you can easily locate each item and assemble the final product.
You can set increase the number of selling options by setting up kits or bundles and creating a new product.
Some refers to this as product bundling, and the two terms are interchangeable.
When the kit is ordered, inventory is automatically decremented from each product that makes up the kit.
This makes it easy for businesses who assemble their own products to track inventory levels of both finished goods and individual parts.
In addition to using kitting to create an assembly composed of individual parts, kitting may be used for promotion products that involve proving additional products.
Creating promotions such as “Buy 2, Get 1 Free” is a straightforward operation with the kitting feature.