The inventory system is a basic process for all types of companies and, especially, for those that manage a very varied number of products. Knowing the exact location of the references avoids errors and delays in storage tasks and order preparation.
With an adequate inventory system, companies can calculate the amount of products they need to provide service, ensure the distribution of the merchandise in the agreed terms and even face unforeseen changes in demand.
An inventory system consists of a set of rules and procedures that companies use to know the exact amount of products they have. This process allows them to know which items are about to run out and thus organize their replenishment in advance to prevent possible stock outages.
Companies that record the inflows and outflows of merchandise in the warehouse can determine the level of turnover for each item and develop an effective supply strategy that guarantees uninterrupted service.
Likewise, stock control helps to identify discrepancies between the physical inventory ─the stock located on the shelves─ and the theoretical or accounting ─the one that is registered in a warehouse management software, in an ERP or in an Excel
With an inventory system, companies can identify which merchandise is essential for daily operations and even calculate the necessary safety stock in the face of a possible increase in demand.
Types of inventory systems
Each company adapts the inventory system to its type of business, product or workflows. This procedure will depend on issues such as, for example, the nature of the merchandise (whether they are raw materials or finished products) or the logistics process (whether the items are stored or are moving through the logistics network).
Two different inventory systems can be differentiated depending on the frequency with which stock control is carried out in the warehouse:
Periodic inventory. It is an inventory that is carried out manually and periodically (for example, every month, quarter, semester or once a year).
Permanent inventory. Thanks to digitization, the amount of merchandise available to a company is kept updated in real time, which makes it possible to keep a strict control of stock.
Periodic or permanent inventory systems help keep track of available stock in the warehouse.
The choice of one system or another will depend on the size of the company, the internal flows of merchandise, the available resources and the amount of stock in the warehouse.
The blog of Logistics at MGEPS at UPV 