At Lightspeed, we’re inventory management pros. That’s why we built our retail POS software system with robust ordering and organization tools that you can leverage to make your inventory work for you . And that’s why we’re happy to share some of our knowledge with you so you can get your inventory in order without the stress.
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In this article we will review:
What Inventory Management Means
Why Inventory Management is Important
Inventory Management Techniques You Need to Know
Tips for an optimized inventory system configuration at your point of sale
Inventory Management Examples for Different Retail Industries
How Your New Inventory Management Skills Will Help You Manage Your Purchasing
What is inventory management?
Your inventory is the products you store to sell to your germany whatsapp number customers. Inventory management is about keeping this stock in order.
But inventory management is more than just good organization. It also helps you manage the costs of ordering, storing, and transporting your inventory, so you can get a better return on your investment.
Seamless inventory management provides you with the information you need to:
Increase your profit margins
Reduce excess stock
Reduce your inventory costs
Work better and more efficiently
4 Common Types of Inventory for Retail Businesses
Not all inventory is the same: Depending on whether you primarily resell products, manufacture your own products, or offer customers a mix of both, you may find yourself dealing with a mix of the following elements that you need to consider.
Raw materials
As the term explicitly states, these are simply raw materials. If you are involved in the production of your inventory, you will probably have some of them on hand. However, not all retailers will deal in raw materials.
If you have raw materials in your inventory, you 'll want to separate them from your finished goods inventory hierarchy . Goods that can be considered raw materials—lumber, for example—that you have in inventory because you intend to sell them to customers are technically finished goods.
Work in progress
As with raw materials, you may have a stock of tangible assets in progress if you are involved in the production of the goods you sell. In this case, your goal should be to ensure that these items do not remain at this stage for long.
They should also be kept separate from your finished goods inventory hierarchy. They are not intended to be sold to customers. If you have inventory in your store that you are working to update, repair, or prepare for customers, it should be classified separately from the goods in progress.
Finished products
Finished goods include everything you have to sell in your brick-and-mortar store or on your eCom site . These can be goods in production or items you have ordered from a vendor.