Inventory is an important part of asset management. In order to perform maintenance efficiently, it is crucial to have inventory available. Otherwise, not only the time of the maintenance team will be wasted, but they will also have to repeat the process again.
However, there are consumables that are the hardest to keep track of, because they are small and frequently used. These consumables are nuts, bolts, helmets, gloves, etc.
If the organization does not perform consumable inventory tracking, then it can interrupt business activities. Some consumables are expensive so that is why consumable inventory tracking becomes essential. But the problem is inventory is in abundance and it becomes complex to keep track of. This is where the inventory tracking system comes into play.
In this blog, we will know what the benefits of consumable inventory are tracking with an automated inventory tracking system! Let us begin!
What Is an Inventory Tracking System?
An inventory tracking system provides a systematic approach to proper & effective management of inventory. It helps organizations in keeping track of inventory & avoids several inventory-related issues such as overstocking and out-of-stock issues.
This software is equipped with powerful and robust features that help in avoiding these issues.
For instance, it provides alerts whenever the level is below the defined level, and a refilling inventory process can be initiated. Other than that, it provides real-time inventory as well.
An inventory tracking system regularly updates inventory levels and keeps track of inventory availability of all stock locations. Inventory tracking & management system is essential for inventory-intensive industries.
According to Global Market Insights, “Inventory Management Software Market size crossed USD 3 billion in 2019 and is estimated to grow at a CAGR of over 5% from 2020 to 2026.”
Why Inventory Management Is Important for Businesses?
Inventory management is important for businesses as it plays a crucial role in maintaining compliance. With the inventory management software, you can easily manage documents & find them in a few clicks.
Other than this, you can easily avoid stock issues, several businesses struggle with managing inventory efficiently.
What Is Consumable Inventory Tracking?
Consumable inventory tracking is the process of monitoring and tracking inventory. In this process, real-time numbers of inventory available are shown. With consumable inventory tracking, you can avoid out-of-stock issues easily.
With consumable inventory tracking, you can also know the quality of consumables provided by manufacturers which helps in better management of inventory. With inventory tracking, you know the exact level of inventory and in how much time inventory will be finished.
What Are the Benefits of Consumable Inventory Tracking?
The benefits of consumable inventory tracking are discussed below:
1. Consumables Are Not Wasted
When you keep track of inventory you know how much inventory you will require in a specific period. In that way, consumables are not wasted.
2. Unnecessary Inventory Purchasing Avoided
Several organizations purchase inventory consumables in bulk. However, a lot of inventory is not even used but inventory also has an expiry date as a result inventory is wasted. But with consumable inventory tracking, you can avoid unnecessary inventory purchases.
3. Better Inventory Planning
An inventory tracking & management system provides valuable information that helps organizations in better planning. When you define the re-order level you will not have to worry about inventory being out-of-stock as you can do this for all specific types of consumables inventory.
4. Informed Decisions
An inventory tracking system has crucial information that helps organizations in taking strategic and informed business decisions. This software provides information such as inventory in hand, quantities consumed by each employee, and cost of inventory.
5. Avoid Inventory Problems
When an organization is not equipped with automated inventory management software then lots of problems occur. It is not easy to balance inventory because they are inventory intensive and there are multiple inventory locations. As a result, a lot of inventory issues occur such as out-of-stock & overstocking, and so on.
With an automated inventory tracking system your consumable stock. It is the most effective way to improve compliance, lower risk, optimizes inner operations, and work on your association's general primary concern.
It provides several advantages as we have told above apart from that it provides alert & notifications and a re-order level feature is also there. Data gathering is also can be done without compromising accuracy it is helpful to organizations. Eliminates paperwork for inventory management.
This software is helpful in understanding inventory trends and helps businesses in planning for the future which can help in business growth. No doubt, this software is a game changer for inventory-intensive organizations.
Frequently Asked Questions (FAQs)
Q.1 - What Are the Methods Used for Inventory Tracking?
There are several inventory tracking methods available in the market such as barcode, QR (Quick Response) code, RFID (radio frequency identification), GPS (Global Positioning System), BLE (Bluetooth low energy), NFC (near field communication), IoT (Internet of Things). Since Barcode is the most cost-effective technology & inventories are usually more lot in quantity.
Q.2 - Why Do You Need Inventory Tracking?
Inventory tracking provides better inventory visibility and avoids shortages and better management of inventory can be done. Inventory tracking helps in detecting patterns that help in inventory forecasting.
Q.3 - What Are the Various Inventory Management Techniques?
Various inventory management techniques are given below:
1. ABC Analysis - In this technique inventory is divided into 3 categories in category A only costly items are kept in category B less expensive inventory is kept in category C least expensive inventory is kept.
2. Drop Shipping – in this technique organization focuses on growing business and outsourcing inventory management.
First in and first out (FIFO) - first in and first out technique is used mainly in the retail industry as they have an expiry date and customers need to purchase before inventory is expired.
3. Just in Time (JIT) - Company maintains the lowest level of stock so that unnecessary purchasing can be avoided.