Why inventory is needed

We also offer top-quality warehousing distribution, small parts kitting , cold seal packaging equipment , and more. We also offer skin packaging. Get Started with Fapco Inc. Tweet this article. Always Know Where Your Inventory is Located Businesses with more than one location can suffer when employees need to constantly call each other to find a single piece of inventory, or confirm its presence.

When not writing about inventory management, you can find her eating her way through Auckland. Material Requirements Planning MRP software can be a great option when a business is struggling to juggle the multiple elements of the manufacturing Good cashflow is key to the success of every business.

Bad cashflow can have seriously negative effects on the overall productivity of the business, i Getting the most out of your Contact us Careers About us. Check our help guide for more info. Ground Training - Beginner Learn the fundamentals of inventory management. Take Off - Advanced Get a deeper insight into our advanced features.

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Business Tips. Part shipments can be costlier. In terms of transit time too, transit time for full container shipment or a full truck load is direct and faster unlike part shipment load where the freight forwarder waits for other loads to fill the container which can take several weeks.

There could be a lot of factors resulting in shipping delays and transportation too, which can hamper the supply chain forcing companies to hold safety stock of raw material inventories. Often raw material supplies from vendors have long lead running into several months. Coupled with this if the particular item is in high demand and short supply one can expect disruption of supplies.

In such cases it is safer to hold inventories and have control. Holding inventories help the companies remain independent and free from vendor dependencies. The brand sends it to the warehouse only to discover that the product is out of stock. Or just as bad, the eCommerce brand ships the wrong item. Taking the time to develop a more robust plan can help brands avoid inaccurately filled orders, high return volumes and a loss of customer base. Detailed inventory management mitigates these issues, allowing warehouse managers to refresh inventory only when needed.

When that happens, buyers are less likely to purchase from the brand again. On the other hand, good inventory management leads to orders being fulfilled more quickly and shipped out to customers faster. The enhanced processes can help eCommerce and online retail brands build a strong repertoire with consumers — and keep them coming back for more. More Advantages of a Good Inventory Management Strategy There are so many great advantages that can result from managing inventory properly.

Here are some additional benefits to keep in mind: Improved Accuracy of Inventory Orders Accuracy of product orders, status, and tracking are critical to good inventory management. Organized Warehouse A good inventory management strategy leads to an organized fulfillment center.