Businesses function in a seamless manner due to a wide range of variables. Customer satisfaction is undoubtedly the most important of them. After all, what would a business do if it has no customers to attract and please? A company, regardless of the industry it belongs to, build a huge customer base by tracking its available supply through inventories.
Everyone knows about supply and demand. Businesses succeed when they have a supply of products for their targeted customers. To create as well as retain the demand, supply has to be constant. Being aware of the inventory and maintaining proper communication within the company contributes to the supply.
Inventory is a store or stock of products. A company manufactures the products to meet demand and fulfil purposes. Without an inventory, a company would not know the amount of products they have at the moment, thus, would not be prepared or capable to fill the orders.
Suppose you own a garments store, and a customer visits looking for jeans. The customer will shop someplace else if you exhausted the entire supply of jeans yesterday, and forgot to restock them. If you are a manufacturer, you must be acquainted with several kinds of inventory to keep the operations smooth.
Kinds of Inventory
According to the experts offering RFID retail inventory management systems, understanding the kinds of inventory stated below help entrepreneurs plan and budget well. They can prosper in the vast marketplace.
- Raw materials are an integral part of all businesses as they make up the products for sale. Sugar, water, and lemon are the raw materials you will need if you plan on running a lemonade shop, and gain a reputation in the beverage industry. Track the raw materials, or else you will fail to predict what you will produce over the next year.
- Work In Progress is made of various parts being processed in a particular system, including the assemblies, components, subassemblies, and necessary materials. If you own an automobile repair shop, brake pads will be one of your WIPs. You need to track the status of the staff members assigned with the task of changing the brake pad on the cars.
- Packing materials are the inventory utilized for packing and shipping the finished goods. They can be divided into three categories- primary packing that includes bag, box, and other containers that encloses a product when on retail display, secondary packing includes bag, box, and other containers that encloses a product when it is being transported; miscellaneous packing includes the materials used for storing a product—examples – foam peanuts, bubble wrap, pallet wrap, pallets, and labels.
- Finished goods, as most of you have guessed, are inventory ready to be sold and marketed. If you have a restaurant business, the boxed and packaged ice cream cones will be your finished good.
Understanding the kinds of inventory is not enough for businesses; the owners must be capable of handling them without any hassle. From among all software innovated at present, RFID inventory solutions are considered the best. They can read and compare data accurately in a short period.