Everything You Need to Know About Inventory Management

September 3, 2021

Inventory tracking is one of the most important business processes that many operators are thinking about. Although it may seem complicated, a stock management infrastructure that is structured in the right way provides companies with the opportunity to manage their business processes and to control the processes in all (almost all) business lines that are in some way in stock.In this article, which is the first of our blog posts about stock tracking, we share some important information you need to know about inventory management.

What is Inventory Management?

Let's start with the basic question, what is stock tracking?The shortest answer to this question; It is the follow-up, management and control of all processes between the entry of a product or product into the company's warehouse and the arrival of the customer. With a neighborhood barber hiding a 5-liter shampoo under the counter and filling shampoo bottles as they become empty, the complex business processes that a world-renowned textile company manufactures and supplies from a single center meet at the same point: inventory management. From this point of view, the neighborhood barber will be condemned to lose its place in the market and submit to its rival if it does not manage its stocks properly, just like the world famous textile company.In order to ensure that these problems do not occur, companies work non-stop to correctly manage their stock management processes. For this purpose, they use many different software and spend pounds of money just to keep track of inventory. While some companies may reciprocate their efforts, many companies cannot find a solution that fully meets their needs and, as you are currently doing, they are looking for a new inventory track.

Which Businesses Should Do Inventory Tracking?

Inventory tracking is a very important business line in all business and production centers, from the smallest workshop to the big companies doing international business. When a firm knows the exact amount of raw materials and / or products it holds, it can perform purchasing and shipping operations more accurately.

Why is Inventory Management Important? What Are the Benefits?

The most important reason for carrying out stock follow - up transactions is the need to present the company 's income - expense accounts. When a company knows the product and raw material it holds, it can control its income and expenses in a more transparent way and protect its accounts if the purchase and sale transactions are carried out in the light of inventory tracking data. Inventory management, also known as inventory management, allows the company to analyze historical data and current warehouse status. In this way, companies can take their strategic decisions on more solid grounds.

What are Inventory Tracking Methods?

Prior to the global digital transformation in the 2000s, almost all companies, except for the world giant companies, were conducting stock follow - up transactions with the traditional pen - paper method. Persons or units in charge of inventory management in the company worked in harmony with other departments in the company and carried out warehouse and inventory counting operations manually. The digital transformation that took place after the 2000s spread to stock tracking and inventory management as well as many other fields, and many companies, especially large companies in the production and retail sectors, started to perform inventory and warehouse management activities through digital environments. .The most beautiful part of the technology is that the expensive solutions are getting cheaper every day and they are sold at reasonable prices over time. The first softwares for inventory tracking and inventory management are; they were on-premises software solutions with company specific designs. Such solutions were relatively expensive, as they required company-specific work. With the spread of the Internet, cloud-based solutions, which can be regarded as a revolution in technology, have become available and opened the door to a new world in digital transformation. At this stage, before focusing on stock tracking software, we briefly look at the historical development of the software world; it is useful to examine the built-in and cloud-based software solutions a little more and to evaluate the advantages and disadvantages of these two alternatives.

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