You’ve learned the basics of Inventory management now you need to develop a process for how you manage and operate your products. Here’s a guide to choosing an Inventory management solution that matches your industry’s requirements.
What is an Inventory management solution?
An Inventory management solution (or Inventory solution) is the process by which you manage your goods throughout your complete supply chain, from buying to production to end sales. It governs how you approach Inventory management for your business.
Each industry will manage products in their own unique way, depending on the nature and size of their business. Let’s take a look at a simple example.
Inventory management solution example
Individual starts a business selling food hampers. He has various suppliers who sell him food in bulk, some of which must then be split up and repackaged.
Individual creates an Excel spreadsheet, which he updates whenever he orders more products, assembles a hamper or completes a sale. This is his Inventory management solution, and he’s entirely dependent on it to know how much products he currently has, when his food products might expire, how many hampers he can sell and more.
Why you need an Inventory solution
Inventory systems tell you the number of components or ingredients you need to create or assemble your final product. Without this information you may end up with excess products, eroding your bottom line, or with insufficient products to meet customer demand.
But while you will need an Inventory management solution, which one you choose is entirely up to you. There are infinite different systems you can adopt, ranging from simple approaches to comprehensive solutions.