Inventory control has a huge impact on a business’s success. Taking care of stocks requires planning and timely execution. 

Did you know that there are four types of stocks?

1. Work-in-progress
2. Raw Material
3. Finished goods
4. MRO

This classification applies to manufacturing companies only. Retailers and wholesalers only stock finished goods. 

Work-in-progress: WIP is the inventory that is being converted from raw materials to finished goods. It is important to keep track of WIP as it helps understand if any product is damaged or lost. The time taken to convert raw materials into finished goods can also be estimated with the help of this stock. 

Raw materials: This is the stock of all those components that make the finished goods.

Finished goods: This is the final product that is ready to be sold. 

MRO: This is the stock of maintenance, repair and operating supplies. These supplies are crucial for maintaining a business's premises like warehouses and also ensuring that its operations like manufacturing run smoothly. As a business grows it is important to control MRO to have good inventory control. 

Now that we have familiarised ourselves with all the types of inventory, let’s move forward.

What is the role of inventory management in a business?

Inventory management is the gap between making profits and experiencing losses. It helps track and count your stock so you know how much you already have in hand. It also helps in valuing your inventory worth and gives you an estimated expense.  

Why is inventory management important?

After all, why? Inventory control helps a business understand the correlation between sales and inventory. Optimising inventory helps the business in maintaining stock so there never comes a time when the inventory is low or way more than required. This also evades the possibility of duplication and you can easily track all that is in your inventory. Outdated or damaged inventory can be evaluated and avoided through inventory management. 

Inventory management helps analyse the cost a business bears to maintain and keep up with the stock. Over time, this analysis can become crucial in making decisions for cost-cutting and profit maximisation.

How can you effortlessly manage and control your business’s inventory?

UDVM (You develop we market) brings to you software solution systems with inventory management being an important feature. This feature helps you be on top of your game with real time insights. Our softwares helps you understand and realise sales trends. All on top of managing and maintaining inventory. 

There is a huge possibility that without a good inventory management system you are wasting a whole lot of money and precious hours. Our inventory management feature allows you to satisfy demands and keep the stock just as much as the business requires. 

Checkout our products here: https://udevelopvmarket.com/products/