Inventory control is a day-to-day practice in all fields of human endeavor, households, manufacturing firms, servicing firms, etc. The ability to store or stock materials for the provision of goods and services is inventory control. It is a sure way of managing businesses to ensure that customers are satisfied and organizations remain in operation via minimization of losses.
A reliable inventory system implies higher confidence of customers and their attendant continuous patronage. You can also know more about the automated inventory management system via DEAR Systems.
Inventory in the industry includes production inputs like human, financial, equipment, and raw materials. Other forms of inventory are spare parts and partially finished goods (work in process). Inventory is kept to meet independence of operations, variation in product demand and flexibility in production scheduling, variation in raw material delivery time, and variation in economic purchase order-size
An inventory system provides the organizational structure and operating policies for maintaining and controlling goods to be stocked. Effective management of inventory system requires a means of keeping track of items in inventory and an appropriate way of making decisions about how much to order and when to order.
In order to effectively manage inventory in any business, the software will be utilized. This is because human levity has the tendency of hampering the accuracy of the inventory controlled manually thereby affecting the business performance.
When software is used in managing a business inventory flow, the entrepreneur will be in a position to predict with a high degree of certainty the expected income over a time frame. This is because most of the software has the ability to cost inventory inflow and outflow thereby making it easy to make a categorical statement about business profitability.