Incentro

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Incentro is an innovative, digital IT company; built on the happiness of her employees. Our 300+ specialists have great passion for what they do. In the Netherlands, Incentro has been qualified as ‘a great place to work’ multiple times in a row. 
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Incentro
IT solutions that make you smile
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32 Questions
This term is used when it comes to calculating the cost of inventory for a business or retail outlet.Inventory carrying cost refers to the cost associated with storing unsold goods purchased from another business. Inventory carries costs related to space, equipment, raw materials, salaries, taxes and more. It also takes into consideration the cost of insurance, depreciation, opportunity cost and overhead expenses.Usually, carrying costs are 15% to 30% of the value of a company’s inventory. This can be used by business owners to understand their business's sales mix. It helps them determine whether their business should buy more products in the store to increase sales or if they should focus on selling products to reduce inventory costs to lower the cost of sales. It also gives them an idea of how much capital they need to invest in the operation of the business to increase sales while keeping the costs at the lowest level.Carrying costs includes four components:Capital cost: This is the largest cost that includes investment in the inventory of the business. Capital cost is a percentage of the total inventory. Service cost: High levels of inventory makes mitigating consumer demands easier but it raises the cost of insurance premiums as well as taxes.Risk cost: When products or goods are stored for too long, their value tends to drop. This is known as product value depletion which is a major risk factor for a business.Storage cost: Storing products has infrastructure needs for which most businesses hire warehouses on rent. This also adds to the cost of inventory. Here, rent is the fixed cost whereas; the cost of handling goods is based on the stock maintained and the demand for the goods.The Formula of Inventory carrying cost:Carrying cost = (Inventory holding sum / Total value of inventory) * 100The four components that I mentioned above sums up as inventory holding sum:Inventory holding sum = Capital cost + Service cost + Risk Cost + Storage CostFor example:A ceramic company who carries inventory for all its products with a total inventory value of $60,000, holding sum is $20,000 so the carrying cost will be Carrying cost (%) = (Inventory holding sum / Total value of inventory) *100  = (20,000 / 60,000) * 100  =  0.3 * 100  = 30%Calculating inventory carrying cost is quintessentially important for growing businesses. There is a range of tools available in the market to help support you with your inventory management needs giving you a unified solution. To know more, visit: https://www.goodfirms.co/inventory-management-software/
This term is used when it comes to calculating the cost of inventory for a business or retail outlet.Inventory carrying cost refers to the cost associated with storing unsold goods purchased from another business. Inventory carries costs related to space, equipment, raw materials, salaries, taxes and more. It also takes into consideration the cost of insurance, depreciation, opportunity cost and overhead expenses.Usually, carrying costs are 15% to 30% of the value of a company’s inventory. This can be used by business owners to understand their business's sales mix. It helps them determine whether their business should buy more products in the store to increase sales or if they should focus on selling products to reduce inventory costs to lower the cost of sales. It also gives them an idea of how much capital they need to invest in the operation of the business to increase sales while keeping the costs at the lowest level.Carrying costs includes four components:Capital cost: This is the largest cost that includes investment in the inventory of the business. Capital cost is a percentage of the total inventory. Service cost: High levels of inventory makes mitigating consumer demands easier but it raises the cost of insurance premiums as well as taxes.Risk cost: When products or goods are stored for too long, their value tends to drop. This is known as product value depletion which is a major risk factor for a business.Storage cost: Storing products has infrastructure needs for which most businesses hire warehouses on rent. This also adds to the cost of inventory. Here, rent is the fixed cost whereas; the cost of handling goods is based on the stock maintained and the demand for the goods.The Formula of Inventory carrying cost:Carrying cost = (Inventory holding sum / Total value of inventory) * 100The four components that I mentioned above sums up as inventory holding sum:Inventory holding sum = Capital cost + Service cost + Risk Cost + Storage CostFor example:A ceramic company who carries inventory for all its products with a total inventory value of $60,000, holding sum is $20,000 so the carrying cost will be Carrying cost (%) = (Inventory holding sum / Total value of inventory) *100  = (20,000 / 60,000) * 100  =  0.3 * 100  = 30%Calculating inventory carrying cost is quintessentially important for growing businesses. There is a range of tools available in the market to help support you with your inventory management needs giving you a unified solution. To know more, visit: https://www.goodfirms.co/inventory-management-software/

This term is used when it comes to calculating the cost of inventory for a business or retail outlet.

Inventory carrying cost refers to the cost associated with storing unsold goods purchased from another business. Inventory carries costs related to space, equipment, raw materials, salaries, taxes and more. It also takes into consideration the cost of insurance, depreciation, opportunity cost and overhead expenses.

Usually, carrying costs are 15% to 30% of the value of a company’s inventory. This can be used by business owners to understand their business's sales mix. It helps them determine whether their business should buy more products in the store to increase sales or if they should focus on selling products to reduce inventory costs to lower the cost of sales. It also gives them an idea of how much capital they need to invest in the operation of the business to increase sales while keeping the costs at the lowest level.

Carrying costs includes four components:

  1. Capital cost: This is the largest cost that includes investment in the inventory of the business. Capital cost is a percentage of the total inventory. 
  2. Service cost: High levels of inventory makes mitigating consumer demands easier but it raises the cost of insurance premiums as well as taxes.
  3. Risk cost: When products or goods are stored for too long, their value tends to drop. This is known as product value depletion which is a major risk factor for a business.
  4. Storage cost: Storing products has infrastructure needs for which most businesses hire warehouses on rent. This also adds to the cost of inventory. Here, rent is the fixed cost whereas; the cost of handling goods is based on the stock maintained and the demand for the goods.

The Formula of Inventory carrying cost:

Carrying cost = (Inventory holding sum / Total value of inventory) * 100

The four components that I mentioned above sums up as inventory holding sum:

Inventory holding sum = Capital cost + Service cost + Risk Cost + Storage Cost

For example:

A ceramic company who carries inventory for all its products with a total inventory value of $60,000, holding sum is $20,000 so the carrying cost will be 

Carrying cost (%) = (Inventory holding sum / Total value of inventory) *100

  = (20,000 / 60,000) * 100

  =  0.3 * 100

  = 30%

Calculating inventory carrying cost is quintessentially important for growing businesses. There is a range of tools available in the market to help support you with your inventory management needs giving you a unified solution. To know more, visit: 

https://www.goodfirms.co/inventory-management-software/

 Inventory audit is a significant procedure of inventory management where auditors cross-check if the financial records match the inventory records and physical goods. Top-notch inventory management can help you minimize the frequency, length and intricacies of audits. As the world buying habits are shifting to digital, e-commerce is witnessing a momentous growth. E-commerce inventory audits are more difficult than the physical retail outlets as they sell across the globe, so the complexity is higher. A business cannot underestimate the importance of inventory audit. Without it, it will be impossible to track, evaluate and record the inventory and make accurate data analysis to make informed decisions. It is crucial to implement inventory audits into your inventory management system as they provide you with a clearer picture of the merchandise and better control over inventory costs. The advantages of inventory audit are as follows:An effective inventory recording system can provide a detailed summary of all the items in your business inventory enabling you to measure the stock availability, sales, purchase and the total cost of inventory every month/year.The process of inventory audit is very crucial for every business. If you are a retailer, the system of inventory audit can help you to manage your inventory properly, increase sales and to make necessary changes to improve the profitability of your business. It includes the procedure of recording the actual inventory as well as inventories of your company's products so that you can analyse and plan future business. It helps you maximize the use of resources that are efficiently utilized. Inventory audit is also essential for accounting purposes as the process is designed to help in developing a reliable and practical method of bookkeeping. It helps the business to make use of available material resources. The process of inventory management also helps the business owner to know the rate of return on investment (ROI) and he or she can calculate the optimum spending for his or her budget.Common inventory audit methods are as follows Cut-off analysis – when you pause shipping and receiving operations to count inventoriesPhysical Inventory count - when you count each unit of physical goods with the system’s record through barcode readers.Analytical procedures – here you compare and analyse the numerous stats such as gross margins, turnover ratio and cost of physical goods with previous years. Along with these, there is ABC analysis, freight cost analysis, finished goods analysis and overhead analysis. Inventory management software integrates these audit methods into the tool to give retailers a competitive advantage.Final thoughtsConducting audits of inventory is of paramount importance for maintaining stock accuracy, for finding out shrinkage and for ensuring that the business has enough inventory at any time. 
 Inventory audit is a significant procedure of inventory management where auditors cross-check if the financial records match the inventory records and physical goods. Top-notch inventory management can help you minimize the frequency, length and intricacies of audits. As the world buying habits are shifting to digital, e-commerce is witnessing a momentous growth. E-commerce inventory audits are more difficult than the physical retail outlets as they sell across the globe, so the complexity is higher. A business cannot underestimate the importance of inventory audit. Without it, it will be impossible to track, evaluate and record the inventory and make accurate data analysis to make informed decisions. It is crucial to implement inventory audits into your inventory management system as they provide you with a clearer picture of the merchandise and better control over inventory costs. The advantages of inventory audit are as follows:An effective inventory recording system can provide a detailed summary of all the items in your business inventory enabling you to measure the stock availability, sales, purchase and the total cost of inventory every month/year.The process of inventory audit is very crucial for every business. If you are a retailer, the system of inventory audit can help you to manage your inventory properly, increase sales and to make necessary changes to improve the profitability of your business. It includes the procedure of recording the actual inventory as well as inventories of your company's products so that you can analyse and plan future business. It helps you maximize the use of resources that are efficiently utilized. Inventory audit is also essential for accounting purposes as the process is designed to help in developing a reliable and practical method of bookkeeping. It helps the business to make use of available material resources. The process of inventory management also helps the business owner to know the rate of return on investment (ROI) and he or she can calculate the optimum spending for his or her budget.Common inventory audit methods are as follows Cut-off analysis – when you pause shipping and receiving operations to count inventoriesPhysical Inventory count - when you count each unit of physical goods with the system’s record through barcode readers.Analytical procedures – here you compare and analyse the numerous stats such as gross margins, turnover ratio and cost of physical goods with previous years. Along with these, there is ABC analysis, freight cost analysis, finished goods analysis and overhead analysis. Inventory management software integrates these audit methods into the tool to give retailers a competitive advantage.Final thoughtsConducting audits of inventory is of paramount importance for maintaining stock accuracy, for finding out shrinkage and for ensuring that the business has enough inventory at any time. 

 

Inventory audit is a significant procedure of inventory management where auditors cross-check if the financial records match the inventory records and physical goods

Top-notch inventory management can help you minimize the frequency, length and intricacies of audits. As the world buying habits are shifting to digital, e-commerce is witnessing a momentous growth. E-commerce inventory audits are more difficult than the physical retail outlets as they sell across the globe, so the complexity is higher. 

A business cannot underestimate the importance of inventory audit. Without it, it will be impossible to track, evaluate and record the inventory and make accurate data analysis to make informed decisions. It is crucial to implement inventory audits into your inventory management system as they provide you with a clearer picture of the merchandise and better control over inventory costs. 

The advantages of inventory audit are as follows:

An effective inventory recording system can provide a detailed summary of all the items in your business inventory enabling you to measure the stock availability, sales, purchase and the total cost of inventory every month/year.

The process of inventory audit is very crucial for every business. If you are a retailer, the system of inventory audit can help you to manage your inventory properly, increase sales and to make necessary changes to improve the profitability of your business. It includes the procedure of recording the actual inventory as well as inventories of your company's products so that you can analyse and plan future business. 

It helps you maximize the use of resources that are efficiently utilized. Inventory audit is also essential for accounting purposes as the process is designed to help in developing a reliable and practical method of bookkeeping. It helps the business to make use of available material resources. The process of inventory management also helps the business owner to know the rate of return on investment (ROI) and he or she can calculate the optimum spending for his or her budget.

Common inventory audit methods are as follows 

  • Cut-off analysis – when you pause shipping and receiving operations to count inventories
  • Physical Inventory count - when you count each unit of physical goods with the system’s record through barcode readers.
  • Analytical procedures – here you compare and analyse the numerous stats such as gross margins, turnover ratio and cost of physical goods with previous years. 

Along with these, there is ABC analysis, freight cost analysis, finished goods analysis and overhead analysis. Inventory management software integrates these audit methods into the tool to give retailers a competitive advantage.

Final thoughts

Conducting audits of inventory is of paramount importance for maintaining stock accuracy, for finding out shrinkage and for ensuring that the business has enough inventory at any time. 

The inventory storage in your warehouse is one of the many necessary expenses that you should consider while creating a business plan. It helps in determining the amount of money you would need to start a business.   How to Estimate a Start-up Inventory Cost?   Inventory cost estimation is, of course, a difficult thing for the new retailers.   On your request, vendors and suppliers will send you the catalogs with the dealer price list for establishing your business. Hence, getting an accurate estimate is essential so that you can show it to the bank or finance companies if you are looking for a loan.   You have to know some basic facts to estimate your inventory cost:   · What product lines you are going to stock with your business?   · How many items would you need to stock to start the store?   · What will be MSRP Manufacturer Suggested Retail Price?   You should also know that the typical retail mark-up price for a product run between 30% and 40% of the actual cost of the product, depending upon the industry segment. Remember, higher mark-ups are possible with the hand-crafted and luxury merchandise.   Let us take an example:   So, you want to stock 20 sweatshirts from popular brands in your inventory.   If regular selling price of a sweatshirt is $60, the mark-up price will be = $60 x .40 = $24 (as per 40% retail mark-up percentage)   Wholesale price of the sweatshirt = $60 - $24 = $36   Wholesale cost of 20 sweatshirts = $36 x 24 = $864   So, your inventory may cost up to $864 for 20 sweatshirts.   Now, pay attention to these two points:   · Be consistent with the above research process and estimates for all the products you are planning to sell.   · Also, consider factors like shipping, handling, and other relevant expenses to obtain the merchandise.   Doing industry research and checking out reports from trade associations can help you get an insight into what mark-up price your retail segment uses.   Always remember that the plan may have differences from actual revenues and expenditures. So, always keep a marginal capital for risk coverage.   Now, when you are ready with your retail business, I will always suggest you to use inventory management software. It will help you to manage your orders, inventory, bills, accounts, reports, and everything that accounts important and needs security in your business. Here are a few of them that will help you to manage your stocks well, along with providing many other benefits.   1. TradeGecko   2. Orderhive   3. Zoho Inventory   4. NetSuite ERP   5. Vend   You can try any of these according to your business needs and get to the successful management of your inventory, warehouses, and customers.
The inventory storage in your warehouse is one of the many necessary expenses that you should consider while creating a business plan. It helps in determining the amount of money you would need to start a business.   How to Estimate a Start-up Inventory Cost?   Inventory cost estimation is, of course, a difficult thing for the new retailers.   On your request, vendors and suppliers will send you the catalogs with the dealer price list for establishing your business. Hence, getting an accurate estimate is essential so that you can show it to the bank or finance companies if you are looking for a loan.   You have to know some basic facts to estimate your inventory cost:   · What product lines you are going to stock with your business?   · How many items would you need to stock to start the store?   · What will be MSRP Manufacturer Suggested Retail Price?   You should also know that the typical retail mark-up price for a product run between 30% and 40% of the actual cost of the product, depending upon the industry segment. Remember, higher mark-ups are possible with the hand-crafted and luxury merchandise.   Let us take an example:   So, you want to stock 20 sweatshirts from popular brands in your inventory.   If regular selling price of a sweatshirt is $60, the mark-up price will be = $60 x .40 = $24 (as per 40% retail mark-up percentage)   Wholesale price of the sweatshirt = $60 - $24 = $36   Wholesale cost of 20 sweatshirts = $36 x 24 = $864   So, your inventory may cost up to $864 for 20 sweatshirts.   Now, pay attention to these two points:   · Be consistent with the above research process and estimates for all the products you are planning to sell.   · Also, consider factors like shipping, handling, and other relevant expenses to obtain the merchandise.   Doing industry research and checking out reports from trade associations can help you get an insight into what mark-up price your retail segment uses.   Always remember that the plan may have differences from actual revenues and expenditures. So, always keep a marginal capital for risk coverage.   Now, when you are ready with your retail business, I will always suggest you to use inventory management software. It will help you to manage your orders, inventory, bills, accounts, reports, and everything that accounts important and needs security in your business. Here are a few of them that will help you to manage your stocks well, along with providing many other benefits.   1. TradeGecko   2. Orderhive   3. Zoho Inventory   4. NetSuite ERP   5. Vend   You can try any of these according to your business needs and get to the successful management of your inventory, warehouses, and customers.

The inventory storage in your warehouse is one of the many necessary expenses that you should consider while creating a business plan. It helps in determining the amount of money you would need to start a business.  

How to Estimate a Start-up Inventory Cost?  

Inventory cost estimation is, of course, a difficult thing for the new retailers.  

On your request, vendors and suppliers will send you the catalogs with the dealer price list for establishing your business. Hence, getting an accurate estimate is essential so that you can show it to the bank or finance companies if you are looking for a loan.  

You have to know some basic facts to estimate your inventory cost:  

· What product lines you are going to stock with your business?  

· How many items would you need to stock to start the store?  

· What will be MSRP Manufacturer Suggested Retail Price?  

You should also know that the typical retail mark-up price for a product run between 30% and 40% of the actual cost of the product, depending upon the industry segment. Remember, higher mark-ups are possible with the hand-crafted and luxury merchandise.  

Let us take an example:  

So, you want to stock 20 sweatshirts from popular brands in your inventory.  

If regular selling price of a sweatshirt is $60, the mark-up price will be = $60 x .40 = $24 (as per 40% retail mark-up percentage)  

Wholesale price of the sweatshirt = $60 - $24 = $36  

Wholesale cost of 20 sweatshirts = $36 x 24 = $864  

So, your inventory may cost up to $864 for 20 sweatshirts.  

Now, pay attention to these two points:  

· Be consistent with the above research process and estimates for all the products you are planning to sell.  

· Also, consider factors like shipping, handling, and other relevant expenses to obtain the merchandise.  

Doing industry research and checking out reports from trade associations can help you get an insight into what mark-up price your retail segment uses.  

Always remember that the plan may have differences from actual revenues and expenditures. So, always keep a marginal capital for risk coverage.  

Now, when you are ready with your retail business, I will always suggest you to use inventory management software. It will help you to manage your orders, inventory, bills, accounts, reports, and everything that accounts important and needs security in your business. Here are a few of them that will help you to manage your stocks well, along with providing many other benefits.  

1. TradeGecko  

2. Orderhive  

3. Zoho Inventory  

4. NetSuite ERP  

5. Vend  

You can try any of these according to your business needs and get to the successful management of your inventory, warehouses, and customers.

What is the beginning inventory? Beginning inventory is the cost of the inventory of business at the beginning of an accounting year. It is also referred to as the value of current inventory carried over at the end of an accounting year. Beginning inventory can also be defined as the discounted value of existing inventory that was not purchased from the previous year's accounts payable.Inventory is an important asset in the balance sheet. It is pledged as security while borrowing credits. It moreover reflects the business’s operation. It is usually categorized into four main groups: property, machinery, supplies, and consumer goods. Inventory can be valued using one of several techniques: FIFO (First In, First Out), LIFO (Last In, First Out), WAC (Weighted Average Cost) and Specific Assigned Value. Each technique has its own advantages and disadvantages and the method used depends upon whether the business is selling tangible or intangible items.Inventory valuation is an integral part of determining the cost of goods sold. This tells the business the cost incurred per unit. Every business aims to keep its COGS at the lowest possible. The formula for calculating COGS:COGS = beginning inventory + inventory purchases during the period – ending inventoryBeginning inventory is also used to calculate average inventory to measure performance. Formula:Average inventory = (beginning inventory + ending inventory) / 2What is the significance of beginning inventory?Beginning inventory defines the growth or decline in sales. If the amount is less compared to the previous period, it indicates that sales have increased in this period and vice versa in the case when the amount is high. It also tells businesses if their inventory levels are higher than required. To summarize, we can say that inventory management, COGS and beginning inventory all these techniques offer a better understanding of sales performance, operations and data that can be useful in making improvements. Certain inventory management applications help businesses in determining their COGS, beginning inventory, inventory turnover and much more with high accuracy. You can compare and put the best software to use here: https://www.goodfirms.co/inventory-management-software/
What is the beginning inventory? Beginning inventory is the cost of the inventory of business at the beginning of an accounting year. It is also referred to as the value of current inventory carried over at the end of an accounting year. Beginning inventory can also be defined as the discounted value of existing inventory that was not purchased from the previous year's accounts payable.Inventory is an important asset in the balance sheet. It is pledged as security while borrowing credits. It moreover reflects the business’s operation. It is usually categorized into four main groups: property, machinery, supplies, and consumer goods. Inventory can be valued using one of several techniques: FIFO (First In, First Out), LIFO (Last In, First Out), WAC (Weighted Average Cost) and Specific Assigned Value. Each technique has its own advantages and disadvantages and the method used depends upon whether the business is selling tangible or intangible items.Inventory valuation is an integral part of determining the cost of goods sold. This tells the business the cost incurred per unit. Every business aims to keep its COGS at the lowest possible. The formula for calculating COGS:COGS = beginning inventory + inventory purchases during the period – ending inventoryBeginning inventory is also used to calculate average inventory to measure performance. Formula:Average inventory = (beginning inventory + ending inventory) / 2What is the significance of beginning inventory?Beginning inventory defines the growth or decline in sales. If the amount is less compared to the previous period, it indicates that sales have increased in this period and vice versa in the case when the amount is high. It also tells businesses if their inventory levels are higher than required. To summarize, we can say that inventory management, COGS and beginning inventory all these techniques offer a better understanding of sales performance, operations and data that can be useful in making improvements. Certain inventory management applications help businesses in determining their COGS, beginning inventory, inventory turnover and much more with high accuracy. You can compare and put the best software to use here: https://www.goodfirms.co/inventory-management-software/

What is the beginning inventory? 

Beginning inventory is the cost of the inventory of business at the beginning of an accounting year. It is also referred to as the value of current inventory carried over at the end of an accounting year. Beginning inventory can also be defined as the discounted value of existing inventory that was not purchased from the previous year's accounts payable.

Inventory is an important asset in the balance sheet. It is pledged as security while borrowing credits. It moreover reflects the business’s operation. It is usually categorized into four main groups: property, machinery, supplies, and consumer goods. 

Inventory can be valued using one of several techniques: FIFO (First In, First Out), LIFO (Last In, First Out), WAC (Weighted Average Cost) and Specific Assigned Value. Each technique has its own advantages and disadvantages and the method used depends upon whether the business is selling tangible or intangible items.

Inventory valuation is an integral part of determining the cost of goods sold. This tells the business the cost incurred per unit. Every business aims to keep its COGS at the lowest possible. The formula for calculating COGS:

COGS = beginning inventory + inventory purchases during the period – ending inventory

Beginning inventory is also used to calculate average inventory to measure performance. Formula:

Average inventory = (beginning inventory + ending inventory) / 2

What is the significance of beginning inventory?

Beginning inventory defines the growth or decline in sales. If the amount is less compared to the previous period, it indicates that sales have increased in this period and vice versa in the case when the amount is high. It also tells businesses if their inventory levels are higher than required. 

To summarize, we can say that inventory management, COGS and beginning inventory all these techniques offer a better understanding of sales performance, operations and data that can be useful in making improvements. Certain inventory management applications help businesses in determining their COGS, beginning inventory, inventory turnover and much more with high accuracy. You can compare and put the best software to use here: https://www.goodfirms.co/inventory-management-software/

 With gazillions of products to sell in regular time intervals, inventory management becomes the operational backbone of any business. If you have just started your business with limited products that you can make use of the good old Microsoft Excel for inventory management. Although, proper utilization on excel requires time, and accurate integration of a template and adequate expertise on inventory management is needed. Excel has always been the best choice for inventory data tracking for start-ups and small businesses. It is fast and error-free allowing you to track all kinds of data, from stock inventory and sales to the price and volume of merchandise. As with any business, there are downsides to using this software, but in the end, it will save you time and money.Excel inventory management works just like any other spreadsheet software. You input data and then run formulas to get the information you need, with the formula being anything that can calculate. The formulas work by adding and multiplying together numbers so they come up with the exact value for each item in your list. With Excel, all you have to do is enter the data and see what comes out. In addition to the standard features of a spreadsheet program, Excel also includes several formulas, which gives it the power to handle any task you can dream of.The formulas are very powerful and complex, especially if you add more than a few items to your list. It may seem like an unnecessary feature at first, but it can be useful if you need to add a bunch of information to one page, or if you need to check your figures often. Excel allows you to make multiple changes to one sheet without having to change the formulas in other sheets. It allows you to move or copy data from one document to another quickly and easily.The biggest advantage of using the formulas in Excel is the accuracy and up-to-date nature of your data. The formulas can check and verify data every time you run them. If you ever have to do a report, there's no need to rely on guesswork alone, as the formulas ensure you're not losing out on any valuable data because you were not able to input the data correctly.It gives you the ability to track the results of your sales. If you want to know which items have sold best or what percentage of a certain category of merchandise is sold, the formulas can give you the results you need. You can easily track the prices, which can help you determine how much profit you've made off of each item.With that, you can easily use the formulas to create reports and graphs to keep an eye on your progress. You can also use it to print information off and make quick calculations without having to open multiple documents and make calculations every time you need to.All things consideredExcel is low-cost, personalized and shareable for inventory management. It is adequate to handle the start-up and small business inventory. To know more about the most preferred inventory management software, click here.. 
 With gazillions of products to sell in regular time intervals, inventory management becomes the operational backbone of any business. If you have just started your business with limited products that you can make use of the good old Microsoft Excel for inventory management. Although, proper utilization on excel requires time, and accurate integration of a template and adequate expertise on inventory management is needed. Excel has always been the best choice for inventory data tracking for start-ups and small businesses. It is fast and error-free allowing you to track all kinds of data, from stock inventory and sales to the price and volume of merchandise. As with any business, there are downsides to using this software, but in the end, it will save you time and money.Excel inventory management works just like any other spreadsheet software. You input data and then run formulas to get the information you need, with the formula being anything that can calculate. The formulas work by adding and multiplying together numbers so they come up with the exact value for each item in your list. With Excel, all you have to do is enter the data and see what comes out. In addition to the standard features of a spreadsheet program, Excel also includes several formulas, which gives it the power to handle any task you can dream of.The formulas are very powerful and complex, especially if you add more than a few items to your list. It may seem like an unnecessary feature at first, but it can be useful if you need to add a bunch of information to one page, or if you need to check your figures often. Excel allows you to make multiple changes to one sheet without having to change the formulas in other sheets. It allows you to move or copy data from one document to another quickly and easily.The biggest advantage of using the formulas in Excel is the accuracy and up-to-date nature of your data. The formulas can check and verify data every time you run them. If you ever have to do a report, there's no need to rely on guesswork alone, as the formulas ensure you're not losing out on any valuable data because you were not able to input the data correctly.It gives you the ability to track the results of your sales. If you want to know which items have sold best or what percentage of a certain category of merchandise is sold, the formulas can give you the results you need. You can easily track the prices, which can help you determine how much profit you've made off of each item.With that, you can easily use the formulas to create reports and graphs to keep an eye on your progress. You can also use it to print information off and make quick calculations without having to open multiple documents and make calculations every time you need to.All things consideredExcel is low-cost, personalized and shareable for inventory management. It is adequate to handle the start-up and small business inventory. To know more about the most preferred inventory management software, click here.. 

 

With gazillions of products to sell in regular time intervals, inventory management becomes the operational backbone of any business. If you have just started your business with limited products that you can make use of the good old Microsoft Excel for inventory management. 

Although, proper utilization on excel requires time, and accurate integration of a template and adequate expertise on inventory management is needed. Excel has always been the best choice for inventory data tracking for start-ups and small businesses. It is fast and error-free allowing you to track all kinds of data, from stock inventory and sales to the price and volume of merchandise. As with any business, there are downsides to using this software, but in the end, it will save you time and money.

Excel inventory management works just like any other spreadsheet software. You input data and then run formulas to get the information you need, with the formula being anything that can calculate. The formulas work by adding and multiplying together numbers so they come up with the exact value for each item in your list. With Excel, all you have to do is enter the data and see what comes out. In addition to the standard features of a spreadsheet program, Excel also includes several formulas, which gives it the power to handle any task you can dream of.

The formulas are very powerful and complex, especially if you add more than a few items to your list. It may seem like an unnecessary feature at first, but it can be useful if you need to add a bunch of information to one page, or if you need to check your figures often. Excel allows you to make multiple changes to one sheet without having to change the formulas in other sheets. It allows you to move or copy data from one document to another quickly and easily.

The biggest advantage of using the formulas in Excel is the accuracy and up-to-date nature of your data. The formulas can check and verify data every time you run them. If you ever have to do a report, there's no need to rely on guesswork alone, as the formulas ensure you're not losing out on any valuable data because you were not able to input the data correctly.

It gives you the ability to track the results of your sales. If you want to know which items have sold best or what percentage of a certain category of merchandise is sold, the formulas can give you the results you need. You can easily track the prices, which can help you determine how much profit you've made off of each item.

With that, you can easily use the formulas to create reports and graphs to keep an eye on your progress. You can also use it to print information off and make quick calculations without having to open multiple documents and make calculations every time you need to.

All things considered

Excel is low-cost, personalized and shareable for inventory management. It is adequate to handle the start-up and small business inventory. To know more about the most preferred inventory management software, click here.

Whether it is an online or offline store, business owners daily sell numerous items. To make sure that items sold are restocked, and no excess ordering happens, an inventory management system is required.     Sometime back, everything was checked and done manually, but with technology enhancement, this is done through software known as Inventory Management Software.     With so many product movements happening in the store, there is always room for error like billing a wrong item or misplacing it in the warehouse. Inventory Management Software also helps in overcoming these issues.      The technology this software uses to track and manage inventory is based on the barcode system. To understand the barcode inventory system it is essential to know what is the barcode, and what it consists of?     What is a barcode?   Generally, the barcode is a label with thin, black lines across it, along with a variety of different numbers. Each barcode gives a unique identity to the product with the help of which the product is tracked. They are also known as UPC codes.     Barcode stores product-related data such as:         Date of manufacturing     Product expiry date     Name of the manufacturer,     Country of the origin     Price     Quantity of the product     Supplier information         (Image Source: Jagranjosh.com)     The bar code combinations and the number of bars differ from company to company. Usually, larger manufacturers have a longer number.     There are two types of barcode:         1Dimensional   2Dimensional    2D is similar to a linear (1-dimensional) barcode but can represent more data per unit area. 2D barcodes are equipped with storing information both horizontally and vertically.     The barcode is read by using a special scanner that reads the information directly from it.     What is a barcode inventory system?   The barcode inventory system is a combination of software and hardware tools that automate the process of tracking inventory via a barcode. The barcode inventory system is essential to optimize inventory management and reduce manual errors.     When barcodes are scanned, the digits are converted into text delivered by the scanner to a computer software system or inventory system holding a database. The product information is pulled from this inventory database whenever and wherever required.     Besides this, other functions that barcode inventory system performs are:         Assigning product information to specific items with a lot number, product ID, etc.     Track the sales order workflow statuses like orders picked, ready to be picked, shipped, etc.     Track the location of products in the warehouse and so on    For the internal inventory management system, retailers use SKU barcodes. The inventory management system can generate, scan and print barcodes. Barcode scanners record and translate barcodes from the image into alphanumeric digits.      Unlike normal (UPC) barcodes, SKU barcodes are unique to individual retailers. SKU codes are alphanumeric, while UPC barcodes are numeric.     Workflow barcode inventory system   (Image Source: Tysentech.com)         Inventory arrives to store     Business owner receives the inventory     Barcodes are created with IMS     Print Barcodes     Inventory stocked     Inventory pulled as per sale     Reports generated         Popular barcode inventory management software   Here is the list of some popular barcode inventory management software,         EZOfficeInventory   Orderhive  Multiorders   ZohoInventory   Fishbowl   Delivrd   inFlow    In recent years, another promising technology for tracking inventory has also made its way into stores, warehouses, and factories- Radio-frequency identification, or RFID. The technology uses a microchip to transmit product information.     So next time you enter the supermarket, you are not simply a consumer but a trigger point for an inventory management system that does tons of things to ensure everything is available and upto the mark.
Whether it is an online or offline store, business owners daily sell numerous items. To make sure that items sold are restocked, and no excess ordering happens, an inventory management system is required.     Sometime back, everything was checked and done manually, but with technology enhancement, this is done through software known as Inventory Management Software.     With so many product movements happening in the store, there is always room for error like billing a wrong item or misplacing it in the warehouse. Inventory Management Software also helps in overcoming these issues.      The technology this software uses to track and manage inventory is based on the barcode system. To understand the barcode inventory system it is essential to know what is the barcode, and what it consists of?     What is a barcode?   Generally, the barcode is a label with thin, black lines across it, along with a variety of different numbers. Each barcode gives a unique identity to the product with the help of which the product is tracked. They are also known as UPC codes.     Barcode stores product-related data such as:         Date of manufacturing     Product expiry date     Name of the manufacturer,     Country of the origin     Price     Quantity of the product     Supplier information         (Image Source: Jagranjosh.com)     The bar code combinations and the number of bars differ from company to company. Usually, larger manufacturers have a longer number.     There are two types of barcode:         1Dimensional   2Dimensional    2D is similar to a linear (1-dimensional) barcode but can represent more data per unit area. 2D barcodes are equipped with storing information both horizontally and vertically.     The barcode is read by using a special scanner that reads the information directly from it.     What is a barcode inventory system?   The barcode inventory system is a combination of software and hardware tools that automate the process of tracking inventory via a barcode. The barcode inventory system is essential to optimize inventory management and reduce manual errors.     When barcodes are scanned, the digits are converted into text delivered by the scanner to a computer software system or inventory system holding a database. The product information is pulled from this inventory database whenever and wherever required.     Besides this, other functions that barcode inventory system performs are:         Assigning product information to specific items with a lot number, product ID, etc.     Track the sales order workflow statuses like orders picked, ready to be picked, shipped, etc.     Track the location of products in the warehouse and so on    For the internal inventory management system, retailers use SKU barcodes. The inventory management system can generate, scan and print barcodes. Barcode scanners record and translate barcodes from the image into alphanumeric digits.      Unlike normal (UPC) barcodes, SKU barcodes are unique to individual retailers. SKU codes are alphanumeric, while UPC barcodes are numeric.     Workflow barcode inventory system   (Image Source: Tysentech.com)         Inventory arrives to store     Business owner receives the inventory     Barcodes are created with IMS     Print Barcodes     Inventory stocked     Inventory pulled as per sale     Reports generated         Popular barcode inventory management software   Here is the list of some popular barcode inventory management software,         EZOfficeInventory   Orderhive  Multiorders   ZohoInventory   Fishbowl   Delivrd   inFlow    In recent years, another promising technology for tracking inventory has also made its way into stores, warehouses, and factories- Radio-frequency identification, or RFID. The technology uses a microchip to transmit product information.     So next time you enter the supermarket, you are not simply a consumer but a trigger point for an inventory management system that does tons of things to ensure everything is available and upto the mark.

Whether it is an online or offline store, business owners daily sell numerous items. To make sure that items sold are restocked, and no excess ordering happens, an inventory management system is required.    

Sometime back, everything was checked and done manually, but with technology enhancement, this is done through software known as Inventory Management Software.    

With so many product movements happening in the store, there is always room for error like billing a wrong item or misplacing it in the warehouse. Inventory Management Software also helps in overcoming these issues.     

The technology this software uses to track and manage inventory is based on the barcode system. To understand the barcode inventory system it is essential to know what is the barcode, and what it consists of?    

What is a barcode?  

Generally, the barcode is a label with thin, black lines across it, along with a variety of different numbers. Each barcode gives a unique identity to the product with the help of which the product is tracked. They are also known as UPC codes.    

Barcode stores product-related data such as:        

  • Date of manufacturing    
  • Product expiry date    
  • Name of the manufacturer,    
  • Country of the origin    
  • Price    
  • Quantity of the product    
  • Supplier information        

(Image Source: Jagranjosh.com)    

The bar code combinations and the number of bars differ from company to company. Usually, larger manufacturers have a longer number.    

There are two types of barcode:        

  • 1Dimensional  
  • 2Dimensional
       

2D is similar to a linear (1-dimensional) barcode but can represent more data per unit area. 2D barcodes are equipped with storing information both horizontally and vertically.    

The barcode is read by using a special scanner that reads the information directly from it.    

What is a barcode inventory system?  

The barcode inventory system is a combination of software and hardware tools that automate the process of tracking inventory via a barcode. The barcode inventory system is essential to optimize inventory management and reduce manual errors.    

When barcodes are scanned, the digits are converted into text delivered by the scanner to a computer software system or inventory system holding a database. The product information is pulled from this inventory database whenever and wherever required.    

Besides this, other functions that barcode inventory system performs are:        

  • Assigning product information to specific items with a lot number, product ID, etc.    
  • Track the sales order workflow statuses like orders picked, ready to be picked, shipped, etc.    
  • Track the location of products in the warehouse and so on
       

For the internal inventory management system, retailers use SKU barcodes. The inventory management system can generate, scan and print barcodes. Barcode scanners record and translate barcodes from the image into alphanumeric digits.     

Unlike normal (UPC) barcodes, SKU barcodes are unique to individual retailers. SKU codes are alphanumeric, while UPC barcodes are numeric.    

Workflow barcode inventory system  


(Image Source: Tysentech.com)        

  1. Inventory arrives to store    
  2. Business owner receives the inventory    
  3. Barcodes are created with IMS    
  4. Print Barcodes    
  5. Inventory stocked    
  6. Inventory pulled as per sale    
  7. Reports generated        

Popular barcode inventory management software  

Here is the list of some popular barcode inventory management software,        

  1. EZOfficeInventory  
  2. Orderhive 
  3. Multiorders  
  4. ZohoInventory  
  5. Fishbowl  
  6. Delivrd  
  7. inFlow
       

In recent years, another promising technology for tracking inventory has also made its way into stores, warehouses, and factories- Radio-frequency identification, or RFID. The technology uses a microchip to transmit product information.    

So next time you enter the supermarket, you are not simply a consumer but a trigger point for an inventory management system that does tons of things to ensure everything is available and upto the mark.

Over 43% of retailers not using inventory management software reported that inventory management is their number one day-to-day challenge. Indeed, it is a hard row to hoe. But what is inventory management and why is it so important?Inventory management is the systematic planning and organizing of physical and financial assets for efficient and effective usage to ensure maximum efficiency and cost savings in terms of inventory control of costs associated with inventory loss. The concept of inventory management encompasses many different aspects of inventory control that involve the determination of the current state of the inventory and the future state of the inventory. It involves some of the key components such as control of waste, control of inventory, control of product returns, management of inventories, management of labor productivity and control of financial costs associated with inventory. The management of inventories involves the management of the supply chain, production of merchandise, inventory controls, and the management of sales and service activities. Inventory management is a fundamental basis for streamlining your supply-chain system. Let’s look at some inventory management techniques:EOQ (Economic Order Quantity): It is a technique used to ensure that your cost of stocking is at the lowest possible by determining the right amount of inventory you need to purchase. The formula is:EOQ = √(2DK / H) or [2 × D × K / H] ½Here, D = Fixed Cost; K = Demand in Units;                     H = Carrying CostMOQ (Minimum Order Quantity): This is the minimum set of stock a supplier is willing to sell. For a manufacturer, the item that has more production costs will have a smaller MOQ compared to that of the economic range of items.ABC analysis: ABC Analysis is a way to classify all products based on their characteristics. This helps you to know the best management and control policy for each product or item. This technique allows you to forecast the future production of a certain product. You can see the demand, supply and can even forecast the sales of each product depending on the demand and supply balance. ABC analysis also helps in predicting and understanding the trends of a particular item. It is an important tool that can be used in all business sectors.Safety stock: Certain products may incur higher demand. Safety stock is meant to ensure these products are never out of stock such that a little more than the required inventory is maintained. FIFO and LIFO methods: These methods define the chronological order in which inventory items leave the warehouse. In FIFO, the first items purchased are sold first whereas, in LIFO, the last purchases are sold first. Summary:There are numerous techniques apart from the ones mentioned such as batch processing, just in time inventory, dropshipping and much more. Without implying these techniques in your inventory lifecycle, it is not possible to accurately define your state of sales and demand. There is a large horizon of inventory management software in the market that can help you streamline all these different processing in a unified manner. All you need to do is some research and understand your requirements.
Over 43% of retailers not using inventory management software reported that inventory management is their number one day-to-day challenge. Indeed, it is a hard row to hoe. But what is inventory management and why is it so important?Inventory management is the systematic planning and organizing of physical and financial assets for efficient and effective usage to ensure maximum efficiency and cost savings in terms of inventory control of costs associated with inventory loss. The concept of inventory management encompasses many different aspects of inventory control that involve the determination of the current state of the inventory and the future state of the inventory. It involves some of the key components such as control of waste, control of inventory, control of product returns, management of inventories, management of labor productivity and control of financial costs associated with inventory. The management of inventories involves the management of the supply chain, production of merchandise, inventory controls, and the management of sales and service activities. Inventory management is a fundamental basis for streamlining your supply-chain system. Let’s look at some inventory management techniques:EOQ (Economic Order Quantity): It is a technique used to ensure that your cost of stocking is at the lowest possible by determining the right amount of inventory you need to purchase. The formula is:EOQ = √(2DK / H) or [2 × D × K / H] ½Here, D = Fixed Cost; K = Demand in Units;                     H = Carrying CostMOQ (Minimum Order Quantity): This is the minimum set of stock a supplier is willing to sell. For a manufacturer, the item that has more production costs will have a smaller MOQ compared to that of the economic range of items.ABC analysis: ABC Analysis is a way to classify all products based on their characteristics. This helps you to know the best management and control policy for each product or item. This technique allows you to forecast the future production of a certain product. You can see the demand, supply and can even forecast the sales of each product depending on the demand and supply balance. ABC analysis also helps in predicting and understanding the trends of a particular item. It is an important tool that can be used in all business sectors.Safety stock: Certain products may incur higher demand. Safety stock is meant to ensure these products are never out of stock such that a little more than the required inventory is maintained. FIFO and LIFO methods: These methods define the chronological order in which inventory items leave the warehouse. In FIFO, the first items purchased are sold first whereas, in LIFO, the last purchases are sold first. Summary:There are numerous techniques apart from the ones mentioned such as batch processing, just in time inventory, dropshipping and much more. Without implying these techniques in your inventory lifecycle, it is not possible to accurately define your state of sales and demand. There is a large horizon of inventory management software in the market that can help you streamline all these different processing in a unified manner. All you need to do is some research and understand your requirements.

Over 43% of retailers not using inventory management software reported that inventory management is their number one day-to-day challenge. 

Indeed, it is a hard row to hoe. But what is inventory management and why is it so important?

Inventory management is the systematic planning and organizing of physical and financial assets for efficient and effective usage to ensure maximum efficiency and cost savings in terms of inventory control of costs associated with inventory loss. 

The concept of inventory management encompasses many different aspects of inventory control that involve the determination of the current state of the inventory and the future state of the inventory. It involves some of the key components such as control of waste, control of inventory, control of product returns, management of inventories, management of labor productivity and control of financial costs associated with inventory. 

The management of inventories involves the management of the supply chain, production of merchandise, inventory controls, and the management of sales and service activities. Inventory management is a fundamental basis for streamlining your supply-chain system. 

Let’s look at some inventory management techniques:

  1. EOQ (Economic Order Quantity): It is a technique used to ensure that your cost of stocking is at the lowest possible by determining the right amount of inventory you need to purchase. The formula is:

EOQ = √(2DK / H) or [2 × D × K / H] ½

Here, 

D = Fixed Cost; 

K = Demand in Units;                     

H = Carrying Cost

  1. MOQ (Minimum Order Quantity): This is the minimum set of stock a supplier is willing to sell. For a manufacturer, the item that has more production costs will have a smaller MOQ compared to that of the economic range of items.
  2. ABC analysis: ABC Analysis is a way to classify all products based on their characteristics. This helps you to know the best management and control policy for each product or item. This technique allows you to forecast the future production of a certain product. You can see the demand, supply and can even forecast the sales of each product depending on the demand and supply balance. 

ABC analysis also helps in predicting and understanding the trends of a particular item. It is an important tool that can be used in all business sectors.

  1. Safety stock: Certain products may incur higher demand. Safety stock is meant to ensure these products are never out of stock such that a little more than the required inventory is maintained. 
  2. FIFO and LIFO methods: These methods define the chronological order in which inventory items leave the warehouse. In FIFO, the first items purchased are sold first whereas, in LIFO, the last purchases are sold first. 

Summary:

There are numerous techniques apart from the ones mentioned such as batch processing, just in time inventory, dropshipping and much more. Without implying these techniques in your inventory lifecycle, it is not possible to accurately define your state of sales and demand. There is a large horizon of inventory management software in the market that can help you streamline all these different processing in a unified manner. All you need to do is some research and understand your requirements.

Pipeline inventory also known as Pipeline stock refers to the products in transit between the purchasing unit and your warehouse. These are the stock items ordered in advance to fill the inventory for the next period. It is commonly known for manufacturing businesses that are actively managing their supply chain with diverse suppliers and retailers with the in-transit inventory.The purpose of pipeline inventory is to make sure that there is always enough of a certain product on hand. When it comes to pipelines, there is a need to have a way for the material to be moved and also to be monitored. This is usually done by having a computerized inventory system where all the pipeline materials and products can be tracked from start to finish.Pipeline inventory is often confused with the term work-in-progress. However, both are different and the difference between the two is that work-in-progress items are yet in production whereas pipeline inventory is already manufactured products in transit.So, What is the importance of Pipeline inventory?Often shipments are received overseas, these can take days or even weeks till they arrive. If the payment is made for these items, it is considered pipeline inventory until received. By tracking pipeline inventory companies can tell how much capital is invested in inventory that yet can’t be sold. It helps in identifying how much of your stock is tied-up and accounting for items in transit and in possession. It also helps in defining the cost of carrying stock.How to calculate Pipeline inventory?To calculate, you need lead time, that is the time taken between ordering and receiving stock and demand rate which is the number of units sold between orders.So, the formula is:Pipeline inventory = Lead time × demand rateLet's take an example, for a company selling eyewear, the lead time is 4 weeks and 60 units are sold per week. So, the pipeline inventory will be:Pipeline inventory = 4 × 60 = 240 units.It means that 240 units are in transit from the supplies to the company’s warehouse. In final words, Pipeline inventory enables businesses to get better insights into actual levels of stock and more accurate inventory analytics. 
Pipeline inventory also known as Pipeline stock refers to the products in transit between the purchasing unit and your warehouse. These are the stock items ordered in advance to fill the inventory for the next period. It is commonly known for manufacturing businesses that are actively managing their supply chain with diverse suppliers and retailers with the in-transit inventory.The purpose of pipeline inventory is to make sure that there is always enough of a certain product on hand. When it comes to pipelines, there is a need to have a way for the material to be moved and also to be monitored. This is usually done by having a computerized inventory system where all the pipeline materials and products can be tracked from start to finish.Pipeline inventory is often confused with the term work-in-progress. However, both are different and the difference between the two is that work-in-progress items are yet in production whereas pipeline inventory is already manufactured products in transit.So, What is the importance of Pipeline inventory?Often shipments are received overseas, these can take days or even weeks till they arrive. If the payment is made for these items, it is considered pipeline inventory until received. By tracking pipeline inventory companies can tell how much capital is invested in inventory that yet can’t be sold. It helps in identifying how much of your stock is tied-up and accounting for items in transit and in possession. It also helps in defining the cost of carrying stock.How to calculate Pipeline inventory?To calculate, you need lead time, that is the time taken between ordering and receiving stock and demand rate which is the number of units sold between orders.So, the formula is:Pipeline inventory = Lead time × demand rateLet's take an example, for a company selling eyewear, the lead time is 4 weeks and 60 units are sold per week. So, the pipeline inventory will be:Pipeline inventory = 4 × 60 = 240 units.It means that 240 units are in transit from the supplies to the company’s warehouse. In final words, Pipeline inventory enables businesses to get better insights into actual levels of stock and more accurate inventory analytics. 

Pipeline inventory also known as Pipeline stock refers to the products in transit between the purchasing unit and your warehouse. These are the stock items ordered in advance to fill the inventory for the next period. 

It is commonly known for manufacturing businesses that are actively managing their supply chain with diverse suppliers and retailers with the in-transit inventory.

The purpose of pipeline inventory is to make sure that there is always enough of a certain product on hand. When it comes to pipelines, there is a need to have a way for the material to be moved and also to be monitored. This is usually done by having a computerized inventory system where all the pipeline materials and products can be tracked from start to finish.

Pipeline inventory is often confused with the term work-in-progress. However, both are different and the difference between the two is that work-in-progress items are yet in production whereas pipeline inventory is already manufactured products in transit.

So, What is the importance of Pipeline inventory?

Often shipments are received overseas, these can take days or even weeks till they arrive. If the payment is made for these items, it is considered pipeline inventory until received. By tracking pipeline inventory companies can tell how much capital is invested in inventory that yet can’t be sold. It helps in identifying how much of your stock is tied-up and accounting for items in transit and in possession. It also helps in defining the cost of carrying stock.

How to calculate Pipeline inventory?

To calculate, you need lead time, that is the time taken between ordering and receiving stock and demand rate which is the number of units sold between orders.

So, the formula is:

Pipeline inventory = Lead time × demand rate

Let's take an example, for a company selling eyewear, the lead time is 4 weeks and 60 units are sold per week. So, the pipeline inventory will be:

Pipeline inventory = 4 × 60 = 240 units.

It means that 240 units are in transit from the supplies to the company’s warehouse. 

In final words, Pipeline inventory enables businesses to get better insights into actual levels of stock and more accurate inventory analytics. 

For any business, fluctuation in the inventory is obvious. However, maintaining accuracy is important to prevent incurring any losses. To do so, you need to be aware of Inventory Reconciliation. Inventory reconciliation is a process matching what you have on-hand with your existing inventory. It does this by checking your inventories against the current stock to find out if there are any discrepancies.The first step in inventory reconciliation is to make sure that the inventory numbers are correct.  It will help you improve your inventory management by being able to detect discrepancies in your current inventory.The next step is to detect any missing item in the inventory so that your records are maintained accuratelyLastly, keep track of perished items in your inventory.Maintaining stock appropriately helps with accounting purposes. It is also important to ensure that your buyers can avail your products, that they are never prompted with out-of-stock.There are three methods of performing inventory reconciliation.ABC inventory: It is the process of grouping products by cost or by turnover. It is a method to count your high-impact items more frequently over less performing ones. Seasonal method: To ensure that you don’t run out on the best-selling items amidst prime sale days, it is a way of dedicating resources to counting products that are selling in the present time.Arbitrary method:  In this method, you count the stock based on its position in the warehouse diversified based on departments, suppliers, pricing, etc.Using Inventory Management Software:Inventory reconciliation can be a strenuous job taking business days to perform their inventory update. However, with the help of the right software, many of the tasks can be automated.Specifically designed inventory management software can help in tracking and updating returns, replacements, repeat orders, integrate with accounting, and perform audits and much more with complete accuracy. Finding the best inventory management software can be daunting and need you to do a lot of research. Here, you can compare various software and their providers on this platform. Here is the link: https://www.goodfirms.co/inventory-management-software/   
For any business, fluctuation in the inventory is obvious. However, maintaining accuracy is important to prevent incurring any losses. To do so, you need to be aware of Inventory Reconciliation. Inventory reconciliation is a process matching what you have on-hand with your existing inventory. It does this by checking your inventories against the current stock to find out if there are any discrepancies.The first step in inventory reconciliation is to make sure that the inventory numbers are correct.  It will help you improve your inventory management by being able to detect discrepancies in your current inventory.The next step is to detect any missing item in the inventory so that your records are maintained accuratelyLastly, keep track of perished items in your inventory.Maintaining stock appropriately helps with accounting purposes. It is also important to ensure that your buyers can avail your products, that they are never prompted with out-of-stock.There are three methods of performing inventory reconciliation.ABC inventory: It is the process of grouping products by cost or by turnover. It is a method to count your high-impact items more frequently over less performing ones. Seasonal method: To ensure that you don’t run out on the best-selling items amidst prime sale days, it is a way of dedicating resources to counting products that are selling in the present time.Arbitrary method:  In this method, you count the stock based on its position in the warehouse diversified based on departments, suppliers, pricing, etc.Using Inventory Management Software:Inventory reconciliation can be a strenuous job taking business days to perform their inventory update. However, with the help of the right software, many of the tasks can be automated.Specifically designed inventory management software can help in tracking and updating returns, replacements, repeat orders, integrate with accounting, and perform audits and much more with complete accuracy. Finding the best inventory management software can be daunting and need you to do a lot of research. Here, you can compare various software and their providers on this platform. Here is the link: https://www.goodfirms.co/inventory-management-software/   

For any business, fluctuation in the inventory is obvious. However, maintaining accuracy is important to prevent incurring any losses. 

To do so, you need to be aware of Inventory Reconciliation. 

Inventory reconciliation is a process matching what you have on-hand with your existing inventory. It does this by checking your inventories against the current stock to find out if there are any discrepancies.

  • The first step in inventory reconciliation is to make sure that the inventory numbers are correct.  It will help you improve your inventory management by being able to detect discrepancies in your current inventory.
  • The next step is to detect any missing item in the inventory so that your records are maintained accurately
  • Lastly, keep track of perished items in your inventory.

Maintaining stock appropriately helps with accounting purposes. It is also important to ensure that your buyers can avail your products, that they are never prompted with out-of-stock.

There are three methods of performing inventory reconciliation.

  • ABC inventory: It is the process of grouping products by cost or by turnover. It is a method to count your high-impact items more frequently over less performing ones. 
  • Seasonal method: To ensure that you don’t run out on the best-selling items amidst prime sale days, it is a way of dedicating resources to counting products that are selling in the present time.
  • Arbitrary method:  In this method, you count the stock based on its position in the warehouse diversified based on departments, suppliers, pricing, etc.

Using Inventory Management Software:
Inventory reconciliation can be a strenuous job taking business days to perform their inventory update. However, with the help of the right software, many of the tasks can be automated.

Specifically designed inventory management software can help in tracking and updating returns, replacements, repeat orders, integrate with accounting, and perform audits and much more with complete accuracy. 

Finding the best inventory management software can be daunting and need you to do a lot of research. Here, you can compare various software and their providers on this platform. Here is the link: 

https://www.goodfirms.co/inventory-management-software/

   

Managing a retail business can be time-consuming and stressful when you have a limited workforce. Taking care of mundane activities such as inventory management and fulfilment can lead you to burnout. Not just that, you also don’t get time to focus on strategic and creative work. With no sense of seasonality, surplus supply and shelf-life, you end up indulging in errors, overproduction and overbooking which increases the cost manifold. Supply is an indispensable part of the success of small retailers. So, it’s high time you switch from conventional pen and paper calculations to the cloud-based platforms with real-time tracking functionalities. Here are some of the top inventory management software for small retailers: NetsuiteIt is a blessing to retailers with top-notch features such as product management, order management, planning & scheduling inventories, warehouse management with inbound-outbound logistics. You can track inventory from numerous locations, take care of safety stock and forecast demand.  It enables efficient screening of orders with serial numbers and traceability. Backed by outstanding customer support, it lets you eliminate the stock counting errors and control the cost. OrderhiveWith 5500+ enterprise clients, Orderhive lets businesses focus on the high-value strategies and growth by taking care of the inventory management, shipping and fulfilment. The platform is rich with features and automate various tasks that make complex business operations easy and attainable. What’s more? You can avail 50% off on the first quarter of your monthly subscription. TradeGeckoThis is for businesses that have limited resources but want to make their mark in the retail industry. Its user-interface is powerful and easy-to-use which lets you work smartly and allows you to invest your time on high-value decisions of the business. This software optimizes your inventories and promises smooth operation of the business – be it distributor, wholesaler or retailer. With its rich functionalities, it guides businesses and identifies the right stocking methods. It synchronizes the inventory with every product sold, provides sales reports, the fulfilment of orders and more. The monthly plan starts from $39. Sellbrite Nothing affects the retail business and its revenue like overselling and poor inventory management. To combat that, use Sellbrite – it balances all the purchase order, sales and stocks. You can take care of the reserved, on-hand stock levels and available products easily by integrating this platform and its top-notch centralised inventory management.It comes with a multi-channel inventory control element that helps you track inventory, automates routing between multiple warehouses and eliminates the overstocking. It provides exceptional customer support to the clients and complete control over your warehouses. It offers a 14-day trial and its basic plan starts from $49/month. All things consideredAlong with that, there are numerous players like StitchLabs, Shipmonk, ecomdash, Lightspeed POS and many alike. Choose what’s best for your business after comparing the pros and cons of each one. 
Managing a retail business can be time-consuming and stressful when you have a limited workforce. Taking care of mundane activities such as inventory management and fulfilment can lead you to burnout. Not just that, you also don’t get time to focus on strategic and creative work. With no sense of seasonality, surplus supply and shelf-life, you end up indulging in errors, overproduction and overbooking which increases the cost manifold. Supply is an indispensable part of the success of small retailers. So, it’s high time you switch from conventional pen and paper calculations to the cloud-based platforms with real-time tracking functionalities. Here are some of the top inventory management software for small retailers: NetsuiteIt is a blessing to retailers with top-notch features such as product management, order management, planning & scheduling inventories, warehouse management with inbound-outbound logistics. You can track inventory from numerous locations, take care of safety stock and forecast demand.  It enables efficient screening of orders with serial numbers and traceability. Backed by outstanding customer support, it lets you eliminate the stock counting errors and control the cost. OrderhiveWith 5500+ enterprise clients, Orderhive lets businesses focus on the high-value strategies and growth by taking care of the inventory management, shipping and fulfilment. The platform is rich with features and automate various tasks that make complex business operations easy and attainable. What’s more? You can avail 50% off on the first quarter of your monthly subscription. TradeGeckoThis is for businesses that have limited resources but want to make their mark in the retail industry. Its user-interface is powerful and easy-to-use which lets you work smartly and allows you to invest your time on high-value decisions of the business. This software optimizes your inventories and promises smooth operation of the business – be it distributor, wholesaler or retailer. With its rich functionalities, it guides businesses and identifies the right stocking methods. It synchronizes the inventory with every product sold, provides sales reports, the fulfilment of orders and more. The monthly plan starts from $39. Sellbrite Nothing affects the retail business and its revenue like overselling and poor inventory management. To combat that, use Sellbrite – it balances all the purchase order, sales and stocks. You can take care of the reserved, on-hand stock levels and available products easily by integrating this platform and its top-notch centralised inventory management.It comes with a multi-channel inventory control element that helps you track inventory, automates routing between multiple warehouses and eliminates the overstocking. It provides exceptional customer support to the clients and complete control over your warehouses. It offers a 14-day trial and its basic plan starts from $49/month. All things consideredAlong with that, there are numerous players like StitchLabs, Shipmonk, ecomdash, Lightspeed POS and many alike. Choose what’s best for your business after comparing the pros and cons of each one. 

Managing a retail business can be time-consuming and stressful when you have a limited workforce. Taking care of mundane activities such as inventory management and fulfilment can lead you to burnout. Not just that, you also don’t get time to focus on strategic and creative work. 

With no sense of seasonality, surplus supply and shelf-life, you end up indulging in errors, overproduction and overbooking which increases the cost manifold. Supply is an indispensable part of the success of small retailers. So, it’s high time you switch from conventional pen and paper calculations to the cloud-based platforms with real-time tracking functionalities. 

Here are some of the top inventory management software for small retailers: 

Netsuite

It is a blessing to retailers with top-notch features such as product management, order management, planning & scheduling inventories, warehouse management with inbound-outbound logistics. You can track inventory from numerous locations, take care of safety stock and forecast demand.  

It enables efficient screening of orders with serial numbers and traceability. Backed by outstanding customer support, it lets you eliminate the stock counting errors and control the cost. 

Orderhive

With 5500+ enterprise clients, Orderhive lets businesses focus on the high-value strategies and growth by taking care of the inventory management, shipping and fulfilment. The platform is rich with features and automate various tasks that make complex business operations easy and attainable. What’s more? You can avail 50% off on the first quarter of your monthly subscription. 

TradeGecko

This is for businesses that have limited resources but want to make their mark in the retail industry. Its user-interface is powerful and easy-to-use which lets you work smartly and allows you to invest your time on high-value decisions of the business. 

This software optimizes your inventories and promises smooth operation of the business – be it distributor, wholesaler or retailer. With its rich functionalities, it guides businesses and identifies the right stocking methods. It synchronizes the inventory with every product sold, provides sales reports, the fulfilment of orders and more. The monthly plan starts from $39

Sellbrite 

Nothing affects the retail business and its revenue like overselling and poor inventory management. To combat that, use Sellbrite – it balances all the purchase order, sales and stocks. You can take care of the reserved, on-hand stock levels and available products easily by integrating this platform and its top-notch centralised inventory management.

It comes with a multi-channel inventory control element that helps you track inventory, automates routing between multiple warehouses and eliminates the overstocking. It provides exceptional customer support to the clients and complete control over your warehouses. It offers a 14-day trial and its basic plan starts from $49/month

All things considered

Along with that, there are numerous players like StitchLabs, Shipmonk, ecomdash, Lightspeed POS and many alike. Choose what’s best for your business after comparing the pros and cons of each one. 

Whether a small business or a large enterprise, inventory valuation is a practice that is recommended for all.  It helps businesses find out the cost of unsold goods at the time of preparing their financial statements. The value of inventory stock helps businesses in determining their inventory turnover ratio which is essential in making purchase decisions. The inventory valuation is carried out when all the company's accounting records are compared. The data gathered from the various books would help the company find the actual value of the assets of the company. The valuation would depend on three things: the value of the asset, the time the assets were sold and the condition of the asset.Once you have identified the unsold items in your inventory, the next step is to determine the final value, for which you need a rate to multiply. The cost of items may have changed periodically in a year, hence what you need is a common rate else it will put you in a dilemma of which rate to use for the process of valuation. Well, there are three ways to go about it: FIFO, LIFO and WAC.FIFO (First In, First Out): When you are dealing with an extremely large amount of inventory, the more accurate this method becomes. Not only is the accuracy greater but also your overall profits become much higher.As the name suggests, the first purchase items will be sold first. With each sale, the items are subtracted from the first list of the product that went into the warehouse. This ensures that the stock remaining at the year-end is the products with the latest MRPs.LIFO (Last In, First Out): As the name suggests, it is the opposite of the FIFO method. Here the last products to come in the warehouse are the ones sold first. Here, the chronological record is not disturbed while releasing goods.Weighted Average Cost: These are of two types: Simple and Weighted Average. The simple Average method is used when businesses do not have to identify the specific cost to the profit. Whereas, WAC is calculated by finding the average cost of an item in a year. The formula for WAC is:WAC = Total cost of units in inventory/ Total number of units purchased in a yearIn final words, inventory valuation can be onerous to do manually. A Software that is effective in inventory valuation along with other functions can help automate the inventory management process. 
Whether a small business or a large enterprise, inventory valuation is a practice that is recommended for all.  It helps businesses find out the cost of unsold goods at the time of preparing their financial statements. The value of inventory stock helps businesses in determining their inventory turnover ratio which is essential in making purchase decisions. The inventory valuation is carried out when all the company's accounting records are compared. The data gathered from the various books would help the company find the actual value of the assets of the company. The valuation would depend on three things: the value of the asset, the time the assets were sold and the condition of the asset.Once you have identified the unsold items in your inventory, the next step is to determine the final value, for which you need a rate to multiply. The cost of items may have changed periodically in a year, hence what you need is a common rate else it will put you in a dilemma of which rate to use for the process of valuation. Well, there are three ways to go about it: FIFO, LIFO and WAC.FIFO (First In, First Out): When you are dealing with an extremely large amount of inventory, the more accurate this method becomes. Not only is the accuracy greater but also your overall profits become much higher.As the name suggests, the first purchase items will be sold first. With each sale, the items are subtracted from the first list of the product that went into the warehouse. This ensures that the stock remaining at the year-end is the products with the latest MRPs.LIFO (Last In, First Out): As the name suggests, it is the opposite of the FIFO method. Here the last products to come in the warehouse are the ones sold first. Here, the chronological record is not disturbed while releasing goods.Weighted Average Cost: These are of two types: Simple and Weighted Average. The simple Average method is used when businesses do not have to identify the specific cost to the profit. Whereas, WAC is calculated by finding the average cost of an item in a year. The formula for WAC is:WAC = Total cost of units in inventory/ Total number of units purchased in a yearIn final words, inventory valuation can be onerous to do manually. A Software that is effective in inventory valuation along with other functions can help automate the inventory management process. 

Whether a small business or a large enterprise, inventory valuation is a practice that is recommended for all.  It helps businesses find out the cost of unsold goods at the time of preparing their financial statements. The value of inventory stock helps businesses in determining their inventory turnover ratio which is essential in making purchase decisions. 

The inventory valuation is carried out when all the company's accounting records are compared. The data gathered from the various books would help the company find the actual value of the assets of the company. 

The valuation would depend on three things: the value of the asset, the time the assets were sold and the condition of the asset.

Once you have identified the unsold items in your inventory, the next step is to determine the final value, for which you need a rate to multiply. The cost of items may have changed periodically in a year, hence what you need is a common rate else it will put you in a dilemma of which rate to use for the process of valuation. 

Well, there are three ways to go about it: FIFO, LIFO and WAC.

  1. FIFO (First In, First Out): When you are dealing with an extremely large amount of inventory, the more accurate this method becomes. Not only is the accuracy greater but also your overall profits become much higher.

    As the name suggests, the first purchase items will be sold first. With each sale, the items are subtracted from the first list of the product that went into the warehouse. This ensures that the stock remaining at the year-end is the products with the latest MRPs.
  2. LIFO (Last In, First Out): As the name suggests, it is the opposite of the FIFO method. Here the last products to come in the warehouse are the ones sold first. Here, the chronological record is not disturbed while releasing goods.
  3. Weighted Average Cost: These are of two types: Simple and Weighted Average. The simple Average method is used when businesses do not have to identify the specific cost to the profit. Whereas, WAC is calculated by finding the average cost of an item in a year. The formula for WAC is:

    WAC = Total cost of units in inventory/ Total number of units purchased in a year

In final words, inventory valuation can be onerous to do manually. A Software that is effective in inventory valuation along with other functions can help automate the inventory management process. 

Well, you should choose an inventory management software according to your business. While selecting an inventory management software, there are few points to consider:      It should be fully customizable    Must have multiple integrations with different marketplaces and sales channel    Real-time data syncing    Automates all inventory activities    24* 7 client support      Generally, the price of the SaaS-based product varies from as low as $25/month to $3000/month. If you're a startup and still don't receive large quantities of order then a cheaper software would be all right.   Before you choose to buy an inventory software, you'll have to decide how much you're prepared to spend on it and how much you're expecting to get in return for your money. How much value do you benefit from automated inventory management system? Try putting on it a price tag.   Here are some well-known inventory management software with their base prices and offerings:   * TradeGecko starts at $ 79 per month featuring unlimited orders, unlimited currencies, ecommerce, accounting integration and mobile apps.   *Orderhive starts from $45/month which includes 200 online orders, Unlimited ecommerce integrations, Premium accounting integrations and Unlimited SKU's.   * Zoho Inventory starts at $29 per month for 100 online orders/unlimited offline orders, 2 warehouses, 10 ecommerce integrations and 10 automated workflows.   If you choose an insufficient solution, after you figure it out and understand something needs to alter, you will most probably have to spend even MORE on the correct solution. First time, it's much better to just make the right choice so you don't have to spend time and money on the incorrect one.   Within a year or potentially within six months of purchasing and fully implementing inventory management software, you as a seller/retailer should have saved enough to cover your purchase costs entirely.    You can cut storage expenses with inventory software, save a lot of man-hours on menial duties, eliminate the need for too many warehouse employees, and enjoy other money-saving advantages.   
Well, you should choose an inventory management software according to your business. While selecting an inventory management software, there are few points to consider:      It should be fully customizable    Must have multiple integrations with different marketplaces and sales channel    Real-time data syncing    Automates all inventory activities    24* 7 client support      Generally, the price of the SaaS-based product varies from as low as $25/month to $3000/month. If you're a startup and still don't receive large quantities of order then a cheaper software would be all right.   Before you choose to buy an inventory software, you'll have to decide how much you're prepared to spend on it and how much you're expecting to get in return for your money. How much value do you benefit from automated inventory management system? Try putting on it a price tag.   Here are some well-known inventory management software with their base prices and offerings:   * TradeGecko starts at $ 79 per month featuring unlimited orders, unlimited currencies, ecommerce, accounting integration and mobile apps.   *Orderhive starts from $45/month which includes 200 online orders, Unlimited ecommerce integrations, Premium accounting integrations and Unlimited SKU's.   * Zoho Inventory starts at $29 per month for 100 online orders/unlimited offline orders, 2 warehouses, 10 ecommerce integrations and 10 automated workflows.   If you choose an insufficient solution, after you figure it out and understand something needs to alter, you will most probably have to spend even MORE on the correct solution. First time, it's much better to just make the right choice so you don't have to spend time and money on the incorrect one.   Within a year or potentially within six months of purchasing and fully implementing inventory management software, you as a seller/retailer should have saved enough to cover your purchase costs entirely.    You can cut storage expenses with inventory software, save a lot of man-hours on menial duties, eliminate the need for too many warehouse employees, and enjoy other money-saving advantages.   

Well, you should choose an inventory management software according to your business. While selecting an inventory management software, there are few points to consider:     

  • It should be fully customizable   
  • Must have multiple integrations with different marketplaces and sales channel   
  • Real-time data syncing   
  • Automates all inventory activities   
  • 24* 7 client support     

Generally, the price of the SaaS-based product varies from as low as $25/month to $3000/month. If you're a startup and still don't receive large quantities of order then a cheaper software would be all right.  

Before you choose to buy an inventory software, you'll have to decide how much you're prepared to spend on it and how much you're expecting to get in return for your money. How much value do you benefit from automated inventory management system? Try putting on it a price tag.  

Here are some well-known inventory management software with their base prices and offerings:
  

* TradeGecko starts at $ 79 per month featuring unlimited orders, unlimited currencies, ecommerce, accounting integration and mobile apps.  

*Orderhive starts from $45/month which includes 200 online orders, Unlimited ecommerce integrations, Premium accounting integrations and Unlimited SKU's.  

* Zoho Inventory starts at $29 per month for 100 online orders/unlimited offline orders, 2 warehouses, 10 ecommerce integrations and 10 automated workflows.  

If you choose an insufficient solution, after you figure it out and understand something needs to alter, you will most probably have to spend even MORE on the correct solution. First time, it's much better to just make the right choice so you don't have to spend time and money on the incorrect one.  

Within a year or potentially within six months of purchasing and fully implementing inventory management software, you as a seller/retailer should have saved enough to cover your purchase costs entirely.   

You can cut storage expenses with inventory software, save a lot of man-hours on menial duties, eliminate the need for too many warehouse employees, and enjoy other money-saving advantages.
 

 

In the modern hyper-competitive marketplace, understanding the gross profit margin is of the essence for any retail business growth. It is critical to understand the relationship between costs and sales to track, understand and improve inventory costing. Inventory costing method is a process through which a retailer evaluates the end inventory balance of retail stores by calculating the cost of goods sold and the actual price paid by him. These methods make use of statistical data to analyse the end inventory balance by retail stores. For instance, it is calculated by the sale of a specific product or by the sale of a group of products, in which some people will buy it at a higher price than others. This statistical data of the sales to the retailers is used to calculate the total cost or profits of the business. Following are some of the most sought-after inventory methods in recent times: Retail Inventory methodThe method, also known as the retail cost method or retail cost accounting, is primarily used by numerous businesses such as restaurants, retail business owners, supermarkets and more. Using this method, you can get the ending inventory balance of a store by calculating the cost of inventory relative to the price of the goods. With the sales and inventory for a period, it also uses the cost-to-retail ratio.FIFO (first in first out) methodA company should never keep a large amount of inventory but instead, they should store them in an organized fashion by placing the goods in a chronological order as per the utility. It is typically done by preparing a list and then putting the order of the products to each category in the order of priority. It helps to reduce inventory loss, improve company efficiency, and enhance overall product quality. This method will provide you with a precise representation of the inventory that can be advantageous if you purchase batches of the same product at varying prices. LIFO (last in, first out) methodIt simply means that your products are stored in a back-up or "lifter" location until they are needed again. Under this method, the last products bought and produced are assumed to be sold first. The LIFO system works by storing your inventory in a back-up location – within one location in a warehouse or a facility. Once it’s done, the system will pull all of your inventory to a central location for you to review. The biggest upside of this method is the tax benefits. Final words To efficiently evaluate the inventory and to effectively manage the business profitability, you need to adopt an inventory method or the inventory management software. It is of paramount importance to have a bird’s eye view on all the product inventory – what’s selling and what’s stalling. 
In the modern hyper-competitive marketplace, understanding the gross profit margin is of the essence for any retail business growth. It is critical to understand the relationship between costs and sales to track, understand and improve inventory costing. Inventory costing method is a process through which a retailer evaluates the end inventory balance of retail stores by calculating the cost of goods sold and the actual price paid by him. These methods make use of statistical data to analyse the end inventory balance by retail stores. For instance, it is calculated by the sale of a specific product or by the sale of a group of products, in which some people will buy it at a higher price than others. This statistical data of the sales to the retailers is used to calculate the total cost or profits of the business. Following are some of the most sought-after inventory methods in recent times: Retail Inventory methodThe method, also known as the retail cost method or retail cost accounting, is primarily used by numerous businesses such as restaurants, retail business owners, supermarkets and more. Using this method, you can get the ending inventory balance of a store by calculating the cost of inventory relative to the price of the goods. With the sales and inventory for a period, it also uses the cost-to-retail ratio.FIFO (first in first out) methodA company should never keep a large amount of inventory but instead, they should store them in an organized fashion by placing the goods in a chronological order as per the utility. It is typically done by preparing a list and then putting the order of the products to each category in the order of priority. It helps to reduce inventory loss, improve company efficiency, and enhance overall product quality. This method will provide you with a precise representation of the inventory that can be advantageous if you purchase batches of the same product at varying prices. LIFO (last in, first out) methodIt simply means that your products are stored in a back-up or "lifter" location until they are needed again. Under this method, the last products bought and produced are assumed to be sold first. The LIFO system works by storing your inventory in a back-up location – within one location in a warehouse or a facility. Once it’s done, the system will pull all of your inventory to a central location for you to review. The biggest upside of this method is the tax benefits. Final words To efficiently evaluate the inventory and to effectively manage the business profitability, you need to adopt an inventory method or the inventory management software. It is of paramount importance to have a bird’s eye view on all the product inventory – what’s selling and what’s stalling. 

In the modern hyper-competitive marketplace, understanding the gross profit margin is of the essence for any retail business growth. It is critical to understand the relationship between costs and sales to track, understand and improve inventory costing. 

Inventory costing method is a process through which a retailer evaluates the end inventory balance of retail stores by calculating the cost of goods sold and the actual price paid by him. These methods make use of statistical data to analyse the end inventory balance by retail stores. 

For instance, it is calculated by the sale of a specific product or by the sale of a group of products, in which some people will buy it at a higher price than others. This statistical data of the sales to the retailers is used to calculate the total cost or profits of the business.

 

Following are some of the most sought-after inventory methods in recent times: 

Retail Inventory method

The method, also known as the retail cost method or retail cost accounting, is primarily used by numerous businesses such as restaurants, retail business owners, supermarkets and more. Using this method, you can get the ending inventory balance of a store by calculating the cost of inventory relative to the price of the goods. With the sales and inventory for a period, it also uses the cost-to-retail ratio.

FIFO (first in first out) method

A company should never keep a large amount of inventory but instead, they should store them in an organized fashion by placing the goods in a chronological order as per the utility. 

It is typically done by preparing a list and then putting the order of the products to each category in the order of priority. It helps to reduce inventory loss, improve company efficiency, and enhance overall product quality. 

This method will provide you with a precise representation of the inventory that can be advantageous if you purchase batches of the same product at varying prices. 

LIFO (last in, first out) method

It simply means that your products are stored in a back-up or "lifter" location until they are needed again. Under this method, the last products bought and produced are assumed to be sold first

The LIFO system works by storing your inventory in a back-up location – within one location in a warehouse or a facility. Once it’s done, the system will pull all of your inventory to a central location for you to review. The biggest upside of this method is the tax benefits. 

Final words 

To efficiently evaluate the inventory and to effectively manage the business profitability, you need to adopt an inventory method or the inventory management software. It is of paramount importance to have a bird’s eye view on all the product inventory – what’s selling and what’s stalling. 

Inventory Discrepancy simply means the difference between the amount of inventory that you have available for your customers and the amount of inventory that you are actually holding on to. Not keeping accurate records of your inventory can lead to problems in the future. On the other hand, keeping accurate records will help you identify exactly where to make changes in your business so that they do not affect your customer's shopping experience.Discrepancies are mostly outcomes of human errors such as shrinkage, lost, misplaced items and more in the inventory control procedure. To help mitigate the needs for accurate inventory, most companies small to big are switching to efficacious inventory management software. The most common causes of discrepancies are as follows:Inventory Shrinkage: This occurs when the physical inventory count does not match with the accounting values indicating less stock which needs some digging in. This happens due to various reasons such as employee theft, clerical mistakes, damaged products, stock value depletion or supplier fraud.      To combat, you can either do manually counting           frequently or switch to automation.Misplacement: This is also one reason for the discrepancy, where items are stocked up in the wrong aisle or units. In retail outlets, this is usually caused by buyers picking up products and leaving them elsewhere.Error in physical count: Humans tend to make mistakes and in inventory management procedure, there is a lot of room for errors. Mistakes occur in manual inventory counting, picking and placement errors, and many more. The best way to mitigate this is by making sure aisles are labeled properly and that appropriate training is provided to the staff.Returned stock: When returned products are placed back on aisles without correct settling it leads to discrepancies. Inventory accuracy is not a child’s play. It can cause heavy losses to a business. To ensure consistency here is what you need to do:Count and recount: To rectify any counting errors verify with product count. It is a strenuous task but necessary for any business.Right measures: Ensure that the units are put down with the right measurements such as unit, box, Liter, weight, etc.Product description: Record detailed and clear descriptions of products so that they are not confused between similar products or variants.In final words, you need to gather information on your inventory to avoid discrepancies and to reduce the hard work inventory management software can come in handy.  
Inventory Discrepancy simply means the difference between the amount of inventory that you have available for your customers and the amount of inventory that you are actually holding on to. Not keeping accurate records of your inventory can lead to problems in the future. On the other hand, keeping accurate records will help you identify exactly where to make changes in your business so that they do not affect your customer's shopping experience.Discrepancies are mostly outcomes of human errors such as shrinkage, lost, misplaced items and more in the inventory control procedure. To help mitigate the needs for accurate inventory, most companies small to big are switching to efficacious inventory management software. The most common causes of discrepancies are as follows:Inventory Shrinkage: This occurs when the physical inventory count does not match with the accounting values indicating less stock which needs some digging in. This happens due to various reasons such as employee theft, clerical mistakes, damaged products, stock value depletion or supplier fraud.      To combat, you can either do manually counting           frequently or switch to automation.Misplacement: This is also one reason for the discrepancy, where items are stocked up in the wrong aisle or units. In retail outlets, this is usually caused by buyers picking up products and leaving them elsewhere.Error in physical count: Humans tend to make mistakes and in inventory management procedure, there is a lot of room for errors. Mistakes occur in manual inventory counting, picking and placement errors, and many more. The best way to mitigate this is by making sure aisles are labeled properly and that appropriate training is provided to the staff.Returned stock: When returned products are placed back on aisles without correct settling it leads to discrepancies. Inventory accuracy is not a child’s play. It can cause heavy losses to a business. To ensure consistency here is what you need to do:Count and recount: To rectify any counting errors verify with product count. It is a strenuous task but necessary for any business.Right measures: Ensure that the units are put down with the right measurements such as unit, box, Liter, weight, etc.Product description: Record detailed and clear descriptions of products so that they are not confused between similar products or variants.In final words, you need to gather information on your inventory to avoid discrepancies and to reduce the hard work inventory management software can come in handy.  

Inventory Discrepancy simply means the difference between the amount of inventory that you have available for your customers and the amount of inventory that you are actually holding on to. Not keeping accurate records of your inventory can lead to problems in the future. 

On the other hand, keeping accurate records will help you identify exactly where to make changes in your business so that they do not affect your customer's shopping experience.

Discrepancies are mostly outcomes of human errors such as shrinkage, lost, misplaced items and more in the inventory control procedure. 

To help mitigate the needs for accurate inventory, most companies small to big are switching to efficacious inventory management software

The most common causes of discrepancies are as follows:

  • Inventory Shrinkage: This occurs when the physical inventory count does not match with the accounting values indicating less stock which needs some digging in. This happens due to various reasons such as employee theft, clerical mistakes, damaged products, stock value depletion or supplier fraud.

      To combat, you can either do manually counting           frequently or switch to automation.

  • Misplacement: This is also one reason for the discrepancy, where items are stocked up in the wrong aisle or units. In retail outlets, this is usually caused by buyers picking up products and leaving them elsewhere.
  • Error in physical count: Humans tend to make mistakes and in inventory management procedure, there is a lot of room for errors. Mistakes occur in manual inventory counting, picking and placement errors, and many more. The best way to mitigate this is by making sure aisles are labeled properly and that appropriate training is provided to the staff.
  • Returned stock: When returned products are placed back on aisles without correct settling it leads to discrepancies. 

Inventory accuracy is not a child’s play. It can cause heavy losses to a business. To ensure consistency here is what you need to do:

  • Count and recount: To rectify any counting errors verify with product count. It is a strenuous task but necessary for any business.
  • Right measures: Ensure that the units are put down with the right measurements such as unit, box, Liter, weight, etc.
  • Product description: Record detailed and clear descriptions of products so that they are not confused between similar products or variants.

In final words, you need to gather information on your inventory to avoid discrepancies and to reduce the hard work inventory management software can come in handy.  

A good inventory management software is what lets you track what you have in stocks with avoiding issues like overstocking that can lose revenue. It helps you to keep an eye on your business’s inventory levels, orders, sales, and deliveries. It is really effective to organize your inventory data that was earlier stored in the hard copies or spreadsheets.If you are also looking for any such kind of assistance for your business, you can instantly choose Zoho Inventory as your best overall inventory management software. Zoho Inventory is best known for its wide range of business software. It ranks higher among all the facilitating inventory software systems available in the market. It is one of the most simple and strategic solutions that let you manage order fulfillment and inventory from a single dashboard. It also helps the businesses to keep track of every unit utilizing the stock management tools of Zoho Inventory Software.You can also use this software on all mobile devices. The free version of the software is available with 1 warehouse and 20 online orders, shipping labels, and shipment tracking each per month. The basic starting plan comes with $39 per month and the standard pricing plan comes with $79 per month. Professional plans that start with $199 per month are also available, but for the big enterprises and production companies. So, Zoho Inventory has a plan for everyone based on the size of your business.Now, there is another option for your business’s inventory management needs i.e. Orderhive Inventory Management Software. It is also one of the best all-in-one software solutions to help the sellers and retailers in simplifying their back-end tasks. The best thing about Orderhive software is that it integrates your different couriers, selling channels, and accounting software into a simple dashboard. At their official website, you will actually get to know how companies are using Orderhive for inventory control and shipping to grow their business. You can try using Orderhive software for free using a 15-days trial package. But the $44.99 per month plan is the minimal one that suits almost all the levels of businesses. Another best thing is that unlimited SKUs and unlimited basic integrations are facilitated with all the paid plans of Orderhive Inventory Management Software, where no hidden cost is involved.Apart from the above-given names, there are many other inventory management software solutions available for different types of businesses. You can choose the one that suits your business plan and strategies and help you meet the ultimate goals. 
A good inventory management software is what lets you track what you have in stocks with avoiding issues like overstocking that can lose revenue. It helps you to keep an eye on your business’s inventory levels, orders, sales, and deliveries. It is really effective to organize your inventory data that was earlier stored in the hard copies or spreadsheets.If you are also looking for any such kind of assistance for your business, you can instantly choose Zoho Inventory as your best overall inventory management software. Zoho Inventory is best known for its wide range of business software. It ranks higher among all the facilitating inventory software systems available in the market. It is one of the most simple and strategic solutions that let you manage order fulfillment and inventory from a single dashboard. It also helps the businesses to keep track of every unit utilizing the stock management tools of Zoho Inventory Software.You can also use this software on all mobile devices. The free version of the software is available with 1 warehouse and 20 online orders, shipping labels, and shipment tracking each per month. The basic starting plan comes with $39 per month and the standard pricing plan comes with $79 per month. Professional plans that start with $199 per month are also available, but for the big enterprises and production companies. So, Zoho Inventory has a plan for everyone based on the size of your business.Now, there is another option for your business’s inventory management needs i.e. Orderhive Inventory Management Software. It is also one of the best all-in-one software solutions to help the sellers and retailers in simplifying their back-end tasks. The best thing about Orderhive software is that it integrates your different couriers, selling channels, and accounting software into a simple dashboard. At their official website, you will actually get to know how companies are using Orderhive for inventory control and shipping to grow their business. You can try using Orderhive software for free using a 15-days trial package. But the $44.99 per month plan is the minimal one that suits almost all the levels of businesses. Another best thing is that unlimited SKUs and unlimited basic integrations are facilitated with all the paid plans of Orderhive Inventory Management Software, where no hidden cost is involved.Apart from the above-given names, there are many other inventory management software solutions available for different types of businesses. You can choose the one that suits your business plan and strategies and help you meet the ultimate goals. 

A good inventory management software is what lets you track what you have in stocks with avoiding issues like overstocking that can lose revenue. It helps you to keep an eye on your business’s inventory levels, orders, sales, and deliveries. It is really effective to organize your inventory data that was earlier stored in the hard copies or spreadsheets.

If you are also looking for any such kind of assistance for your business, you can instantly choose Zoho Inventory as your best overall inventory management software. 

Zoho Inventory is best known for its wide range of business software. It ranks higher among all the facilitating inventory software systems available in the market. It is one of the most simple and strategic solutions that let you manage order fulfillment and inventory from a single dashboard. It also helps the businesses to keep track of every unit utilizing the stock management tools of Zoho Inventory Software.

You can also use this software on all mobile devices. The free version of the software is available with 1 warehouse and 20 online orders, shipping labels, and shipment tracking each per month. The basic starting plan comes with $39 per month and the standard pricing plan comes with $79 per month. Professional plans that start with $199 per month are also available, but for the big enterprises and production companies. So, Zoho Inventory has a plan for everyone based on the size of your business.

Now, there is another option for your business’s inventory management needs i.e. Orderhive Inventory Management Software. It is also one of the best all-in-one software solutions to help the sellers and retailers in simplifying their back-end tasks. The best thing about Orderhive software is that it integrates your different couriers, selling channels, and accounting software into a simple dashboard. At their official website, you will actually get to know how companies are using Orderhive for inventory control and shipping to grow their business. 

You can try using Orderhive software for free using a 15-days trial package. But the $44.99 per month plan is the minimal one that suits almost all the levels of businesses. Another best thing is that unlimited SKUs and unlimited basic integrations are facilitated with all the paid plans of Orderhive Inventory Management Software, where no hidden cost is involved.

Apart from the above-given names, there are many other inventory management software solutions available for different types of businesses. You can choose the one that suits your business plan and strategies and help you meet the ultimate goals. 

Whenever we hear the word “FREE” our mind goes crazy. BUT! If you are a business owner then you must be pretty well aware of the concept of offering freebies to attract more consumers. However, these freebies are good until it doesn’t affect your business.    Likewise, it goes with inventory management software or systems (IMS). Free inventory management tools are also among the top reasons why small businesses fail. Here are some of those reasons why “Free IMS” is not healthy for your small business:        NO Automation Automating all the aspects of the inventory process is one of those features of inventory management software that doesn’t come for free. Although automation is an essential thing that any small or medium-size business requires if they are implementing an inventory management system. Affordable inventory management automation would not only save your time but will also pay off in the long run as your small business grows. High risks of Frauds    Inventory fraud involves the theft of physical inventory items or the misstatement of inventory records on a business's financial statements. To tackle this type of predicament – inventory management system stores product data and keeps track of every transaction occurring, and for further compatibility, you may even have an eye on your products on-the-go via cloud access. And you can’t have all these features in a free IMS. Less or No Integrations    Free inventory tools often come with basic features, and integrations with well-known online marketplaces are just MYTHS! Every IMS charges you some amounts for integrating your inventory with other platforms. Also, in our tech era world, it is recommended that before choosing any SaaS product for your business - make sure it does offer multiple integrations with all the platforms that a business is linked to. Manages only a few Orders per month    During the initial phase of any product-based small business, the numbers of orders are less. But once that business starts scaling you can’t rely on your ‘free’ inventory management system. Because the free IMS manages only limited and fewer numbers of orders. And after you realize that you need to transfer all your product information from that free IMS to other (the more professional one) – it will be too late!     Investing in a comprehensive, multichannel inventory management solution can help eCommerce retailers or product-based business with all aspects of inventory. Professional IMS provides a fully integrated system for stock listing and management across all outlets, including online marketplaces, warehouses, and brick-and-mortar stores. It also provides prediction (based on forecasting algorithms), stock synchronization and data analytics tools to help streamline your small business and make it more efficient and effective.
Whenever we hear the word “FREE” our mind goes crazy. BUT! If you are a business owner then you must be pretty well aware of the concept of offering freebies to attract more consumers. However, these freebies are good until it doesn’t affect your business.    Likewise, it goes with inventory management software or systems (IMS). Free inventory management tools are also among the top reasons why small businesses fail. Here are some of those reasons why “Free IMS” is not healthy for your small business:        NO Automation Automating all the aspects of the inventory process is one of those features of inventory management software that doesn’t come for free. Although automation is an essential thing that any small or medium-size business requires if they are implementing an inventory management system. Affordable inventory management automation would not only save your time but will also pay off in the long run as your small business grows. High risks of Frauds    Inventory fraud involves the theft of physical inventory items or the misstatement of inventory records on a business's financial statements. To tackle this type of predicament – inventory management system stores product data and keeps track of every transaction occurring, and for further compatibility, you may even have an eye on your products on-the-go via cloud access. And you can’t have all these features in a free IMS. Less or No Integrations    Free inventory tools often come with basic features, and integrations with well-known online marketplaces are just MYTHS! Every IMS charges you some amounts for integrating your inventory with other platforms. Also, in our tech era world, it is recommended that before choosing any SaaS product for your business - make sure it does offer multiple integrations with all the platforms that a business is linked to. Manages only a few Orders per month    During the initial phase of any product-based small business, the numbers of orders are less. But once that business starts scaling you can’t rely on your ‘free’ inventory management system. Because the free IMS manages only limited and fewer numbers of orders. And after you realize that you need to transfer all your product information from that free IMS to other (the more professional one) – it will be too late!     Investing in a comprehensive, multichannel inventory management solution can help eCommerce retailers or product-based business with all aspects of inventory. Professional IMS provides a fully integrated system for stock listing and management across all outlets, including online marketplaces, warehouses, and brick-and-mortar stores. It also provides prediction (based on forecasting algorithms), stock synchronization and data analytics tools to help streamline your small business and make it more efficient and effective.

Whenever we hear the word “FREE” our mind goes crazy. BUT! If you are a business owner then you must be pretty well aware of the concept of offering freebies to attract more consumers. However, these freebies are good until it doesn’t affect your business.
  

Likewise, it goes with inventory management software or systems (IMS). Free inventory management tools are also among the top reasons why small businesses fail. Here are some of those reasons why “Free IMS” is not healthy for your small business:       

  • NO Automation

Automating all the aspects of the inventory process is one of those features of inventory management software that doesn’t come for free. Although automation is an essential thing that any small or medium-size business requires if they are implementing an inventory management system. Affordable inventory management automation would not only save your time but will also pay off in the long run as your small business grows.

  • High risks of Frauds   

Inventory fraud involves the theft of physical inventory items or the misstatement of inventory records on a business's financial statements. To tackle this type of predicament – inventory management system stores product data and keeps track of every transaction occurring, and for further compatibility, you may even have an eye on your products on-the-go via cloud access. And you can’t have all these features in a free IMS.

  • Less or No Integrations   

Free inventory tools often come with basic features, and integrations with well-known online marketplaces are just MYTHS! Every IMS charges you some amounts for integrating your inventory with other platforms. Also, in our tech era world, it is recommended that before choosing any SaaS product for your business - make sure it does offer multiple integrations with all the platforms that a business is linked to.

  • Manages only a few Orders per month   

During the initial phase of any product-based small business, the numbers of orders are less. But once that business starts scaling you can’t rely on your ‘free’ inventory management system. Because the free IMS manages only limited and fewer numbers of orders. And after you realize that you need to transfer all your product information from that free IMS to other (the more professional one) – it will be too late!

   

Investing in a comprehensive, multichannel inventory management solution can help eCommerce retailers or product-based business with all aspects of inventory.

Professional IMS provides a fully integrated system for stock listing and management across all outlets, including online marketplaces, warehouses, and brick-and-mortar stores. It also provides prediction (based on forecasting algorithms), stock synchronization and data analytics tools to help streamline your small business and make it more efficient and effective.

What is inventory control? Simply, inventory control is a process that is used in order to reduce total inventory costs while keeping up with customer demand. The above definition is more or less the most popular understanding of what inventory control means. A business has to reduce its inventory carrying cost, stocking and delivery costs to its lowest possible levels while still maintaining a responsive, efficient and consistent supply chain. So basically, there are three ways to go about it:Manual: Extremely economic but impossible for medium to large businesses with numerous processes. Also, it’s obvious that the chance for errors is high.Excel or Spreadsheets:  Gives the lowest level of automation. You’ll need to update records manually, and over time it can be very overbearing.Inventory Software: It integrates and automates multiple processes related to inventory management. Modern-day software provides extensive features and scalability for small to large companies.Inventory control procedures: To perform inventory control, there are two formulas to keep in mind:Economic Order Quantity (EOQ): EOQ will tell you exactly the right amount of inventory you need to purchase such that the cost of stocking is the lowest possible. The formula is:EOQ = √(2DK / H) or [2 × D × K / H] ½Here, D = Fixed Cost; K = Demand in Units; H = Carrying CostFor example,EOQ = [2 × 5000(D) × 500(K) ÷ 20(H)] ½  = 500Reorder Point Formula: Another technique that is used to implement better control over inventory is through the use of Reorder Point Formula. It helps businesses determine the ideal time to purchase or stock up the inventory. After, finding out the optimal stock level, you need to monitor inventory movements. The formula is:Reorder point = Lead Time Demand + Safety StockIn a nutshell, using both EOQ and Reorder Point help you define the lowest stock level to maintain but with the help of the right tool, you can enable automated notifications when low-stock levels are hit so that you can promptly meet consumers demand.Other aspects of inventory control include quality control, organizational control, batch tracking, estimating future demand and much more. Achieving this manually can take a large span of your time, it is best recommended to use software that meets your budget and provides you automation for all your inventory management processes. The right tool will take over the repetitive tasks and give you accurate results so that your minimum stock levels are maintained and loss from stocking is not incurred. To find the right software just follow the link: https://www.goodfirms.co/inventory-management-software/
What is inventory control? Simply, inventory control is a process that is used in order to reduce total inventory costs while keeping up with customer demand. The above definition is more or less the most popular understanding of what inventory control means. A business has to reduce its inventory carrying cost, stocking and delivery costs to its lowest possible levels while still maintaining a responsive, efficient and consistent supply chain. So basically, there are three ways to go about it:Manual: Extremely economic but impossible for medium to large businesses with numerous processes. Also, it’s obvious that the chance for errors is high.Excel or Spreadsheets:  Gives the lowest level of automation. You’ll need to update records manually, and over time it can be very overbearing.Inventory Software: It integrates and automates multiple processes related to inventory management. Modern-day software provides extensive features and scalability for small to large companies.Inventory control procedures: To perform inventory control, there are two formulas to keep in mind:Economic Order Quantity (EOQ): EOQ will tell you exactly the right amount of inventory you need to purchase such that the cost of stocking is the lowest possible. The formula is:EOQ = √(2DK / H) or [2 × D × K / H] ½Here, D = Fixed Cost; K = Demand in Units; H = Carrying CostFor example,EOQ = [2 × 5000(D) × 500(K) ÷ 20(H)] ½  = 500Reorder Point Formula: Another technique that is used to implement better control over inventory is through the use of Reorder Point Formula. It helps businesses determine the ideal time to purchase or stock up the inventory. After, finding out the optimal stock level, you need to monitor inventory movements. The formula is:Reorder point = Lead Time Demand + Safety StockIn a nutshell, using both EOQ and Reorder Point help you define the lowest stock level to maintain but with the help of the right tool, you can enable automated notifications when low-stock levels are hit so that you can promptly meet consumers demand.Other aspects of inventory control include quality control, organizational control, batch tracking, estimating future demand and much more. Achieving this manually can take a large span of your time, it is best recommended to use software that meets your budget and provides you automation for all your inventory management processes. The right tool will take over the repetitive tasks and give you accurate results so that your minimum stock levels are maintained and loss from stocking is not incurred. To find the right software just follow the link: https://www.goodfirms.co/inventory-management-software/

What is inventory control? 

Simply, inventory control is a process that is used in order to reduce total inventory costs while keeping up with customer demand. The above definition is more or less the most popular understanding of what inventory control means. 

A business has to reduce its inventory carrying cost, stocking and delivery costs to its lowest possible levels while still maintaining a responsive, efficient and consistent supply chain. 

So basically, there are three ways to go about it:

  1. Manual: Extremely economic but impossible for medium to large businesses with numerous processes. Also, it’s obvious that the chance for errors is high.
  2. Excel or Spreadsheets:  Gives the lowest level of automation. You’ll need to update records manually, and over time it can be very overbearing.
  3. Inventory Software: It integrates and automates multiple processes related to inventory management. Modern-day software provides extensive features and scalability for small to large companies.

Inventory control procedures: To perform inventory control, there are two formulas to keep in mind:

Economic Order Quantity (EOQ): EOQ will tell you exactly the right amount of inventory you need to purchase such that the cost of stocking is the lowest possible. The formula is:

EOQ = √(2DK / H) or [2 × D × K / H] ½

Here, D = Fixed Cost; K = Demand in Units; H = Carrying Cost

For example,

EOQ = [2 × 5000(D) × 500(K) ÷ 20(H)] ½  = 500

Reorder Point Formula: Another technique that is used to implement better control over inventory is through the use of Reorder Point Formula. It helps businesses determine the ideal time to purchase or stock up the inventory. After, finding out the optimal stock level, you need to monitor inventory movements. 

The formula is:

Reorder point = Lead Time Demand + Safety Stock

In a nutshell, using both EOQ and Reorder Point help you define the lowest stock level to maintain but with the help of the right tool, you can enable automated notifications when low-stock levels are hit so that you can promptly meet consumers demand.

Other aspects of inventory control include quality control, organizational control, batch tracking, estimating future demand and much more. Achieving this manually can take a large span of your time, it is best recommended to use software that meets your budget and provides you automation for all your inventory management processes. The right tool will take over the repetitive tasks and give you accurate results so that your minimum stock levels are maintained and loss from stocking is not incurred. To find the right software just follow the link: 

https://www.goodfirms.co/inventory-management-software/

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