Inventory management is a system that helps you keep track of the inventory of your company. In an inventory management system, you enter the items when you receive them in your company. The system will then count how much you sell along the way so that you know when to order new items.
It is smart to integrate the inventory management system with your invoice and accounting system for easier administration.
By effectively using an inventory management program, you will be able to improve the profitability of your company. Inventory management will also ensure more efficient operations. You will have a good overview of sales figures and based on that, be able to anticipate demand. In this way, you can ensure that you have items available in stock when needed. But you will also minimize the size of the inventory so as not to tie up too much money in having a large inventory.
Do we need to do inventory counting when using inventory management?
Even if you have an efficient inventory management system, you still need to do inventory counting at least once a year. This may be because inventory counting can be affected by shrinkage, theft, damage to items, and the like. However, inventory counting can become easier when you have ready-made lists of which items you should have in stock and it gives you something to compare with. After the inventory counting, the inventory management is updated with actual numbers if the quantity does not match.