In todays busy world, businesses in every sector rely on different types of inventory goods. Products, materials, components, and even cleaning products and packaging, are all classed as controllable physical assets within a modern inventory stream, and understanding how to manage them all is a critical part of day-to-day operations.
Below, we take a look at different types of inventories that should migrate to an effective inventory management software system for better productivity.
1. Raw Materials Inventory Management
Accrued at the beginning of the inventory management cycle, raw materials are items used to manufacture and produce final products. A business may purchase raw materials to manufacture or assemble its products or else sell them to third-party organizations that then transform them into a finished product.
Raw materials are among the most essential stock items in an inventory chain. They dictate manufacturing rates and productivity, so effective and timely procurement is essential.
Businesses should use an appropriate inventory management platform to track, manage and store their raw materials inventory.
2. Maintenance, Repair Operations Inventory Management
Maintenance, repair, and operations (MRO) goods are those that are used as part of a manufacturing supply chain. They are the essential items that a business needs as part of its day-to-day production operations, including things such as PPE and safety equipment, parts and manufacturing equipment, cleaning supplies, and batteries.
Many businesses overlook MRO stock as part of their inventory management strategy. But its important to remember that such goods may play a vital role in everyday operations, aiding personnel in all aspects of the manufacturing cycle. Such items will also need to be stored, logged, and ordered in an effective, timely way so as to avoid overstocking or wastage.
3. Work-in-Progress Inventory Management
Work-in-progress inventory refers to goods that are no longer in their raw-material state, and arent yet ready for sale. Examples of this include a car that hasnt yet had its engine installed or a scented candle without a wick.
WIP stock is easy to overlook because its often part of a complex production cycle, whereby goods are moving through various manufacturing stages. A moderncloud ERP software can help monitor such stock, with real-time tracking and smart inventory management controls.
4. Packing Materials Inventory Management
Packing materials inventory refers to all the items required as part of logistics, warehousing, and delivery operations. It includes goods and materials that are used for both shipping items to customers and as a means of protecting stock in the warehousethink boxes, packaging, paper, bags, and bubble wrap.
As with MRO stock, packing materials are regularly left out of a formal inventory management strategy. But, just as with PPE and cleaning goods, packing materials are an essential part of day-to-day operations and need to be accounted for, particularly if you want fiscal reports, cost of goods, and turnover to be as accurate as possible.
Ready to take control of your inventory? Get in touch for a free demo of Averiware cloud inventory software now!