Never lose track of your inventory with the administrative solutions by Benjamin Choukroun

Never lose track of your inventory with the administrative solutions

by Benjamin Choukroun

Inventory management is managing the company’s raw materials, other components, and finished goods. Inventory management starts from the ordering of raw materials and ends when the finished products are sold. An efficient management system helps the company in avoiding shortages and emergency purchases. Emergency purchases lead to additional costs and reduce profits. It also avoids overstocking which leads to wastages and increases the cost of storage.

Inventory management is vital to all organizations irrespective of their size. Small businesses use the manual method of keeping inventory. The inventory is recorded on paper or with the help of spreadsheets. Manual bookkeeping is a tedious and long process that leads to errors. Even a minor mistake can cause serious problems to the company. Digitalization of inventory management leads to an accurate and streamlined process of inventory management. The digital inventory systems are programmed to send out alerts and also place orders if authorized. Digitalization is the key to the future of business. This is how Digitalizationof everyday administrative tasks by Benjamin Nessim Choukroun takes place.

Categories of Inventory: Classification of inventory into four categories.

• Raw Materials:

Raw materials are various materials that a company buys to manufacture its products. These materials undergo several processes before they are sold to the final consumer.

• Work-in-progress: These are materials that are in the process of

becoming finished goods. These goods have undergone some change but they still have to go through some other processes before they can be sold to the customer.

Finished goods: These goods have gone through the process of manufacturing and are ready to be sold to the consumer.

Merchandise: These are finished goods that the company buys from other manufacturers or suppliers to resell to the customers.

Types of inventory management systems: 1.Material requirement planning: This method of the inventory management system is dependent on the sales forecast. The company should have an accurate sales forecast report to predict the quantity of raw materials required for meeting the customer's demand. The company has to inform its suppliers in advance about the amount of raw material it would need during a particular period.

2.Just in Time Method: This method of inventory keeping saves a lot of money and storage space. This method is where the company purchases raw materials only when a confirmed order is received from the customer. The just-in-time method can be risky as there is a possibility that the supplier may not be able to provide raw materials on time. The company will not be able to meet a sudden rise in demand for the product.

3.Economic Order Quantity: It is the amount of inventory a company should purchase to meet the market demand. This process aims at minimizing the cost of storage and holding. The inventory is ordered in batches. The batches ensure that the purchases do not have to be made too frequently.

The digital administrative support solutions offered by Benjamin Choukroun provide the perfect solution to the problem of inventory management. The solutions are integrated and ready to use.

SOURCE CREDIT: https:// benjaminchoukrounelectroniccheck.blogspot.com/2021/10/never-lose-tr ack-of-your-inventory-with.html

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