Here at Online Transport International, you never have to question where your goods are and how they are being handled. With our inventory management service, we supervise the flow of goods from manufacturers, through warehouses to the point of sale!
THE BENEFITS AND IMPORTANCE OF MANAGING INVENTORY
Many growing businesses are switching over to inventory management technology as a tool to keep track of their business. Our inventory management system reduces the time-consuming process of manual data entry or human errors that are too common. The value of inventory is imperative to the success of a business, which is why inventory management, when done correctly, can greatly improve operational efficiency and longevity. Knowing when to reorder stock, where to store stock, and how much is being ordered is crucial information for every business. Clear visibility of your inventory helps to reduce costs, optimize fulfillment, provide better customer service, and prevent loss from theft, spoilage, and returns. In short, inventory management refers to the process of ordering, storing, and using inventory.
Online Transport International's Inventory Management
The management of your inventory, no matter its type, can be better handled with our software. A physical inventory of any business tends to fall into one of four categories: raw materials, work-in-progress inventory, finished goods and maintenance, repair, and operations (MRO) goods. With inventory management, we handle the supply and purchase of both raw materials and MRO goods, we inform you on the development stage of each product, and we tell you exactly the cost of goods sold (COGS) that can later be used to determine the selling price. Our inventory management technology can also help in setting up an easy-to-understand system for stock-keeping units.
Here is some basic terminology that you might need to understand inventory management:
- Cost of Goods Sold (COGS) – direct cost of producing and storing a product
- Economic Order Quantity (EOQ) – refers to how much you should reorder
- Holding Costs – costs related to storing and holding inventory in a warehouse until it is sold to the customer
- Landed Costs – costs of shipping, storing, import fees, duties, taxes, and other expenses associated with transporting and buying inventory
- Lead Time – the time it takes a supplier to deliver goods after an order is placed
- Order Fulfillment – complete lifecycle of an order from the point of sale to customer delivery
- Order Management – a system that governs the receiving of orders, processing of payments, as well as tracking for customers
- Purchase Order (PO) – document between supplier and buyer that outlines the types, quantities, and agreed prices for products
- Reorder Point – determines when reordering should occur, taking into account current and future demand as well as lead times