Similar to product descriptions in an online store or digital catalog , inventory descriptions provide additional information that is valuable when items with similar names or codes exist.
Number of items with similar characteristics
The number of items with similar characteristics in the inventory is important to avoid overselling of products , as well as the excessive acquisition of merchandise, supplies or furniture that may expire or become obsolete, which could result in losses for the company.
Type of movement (input or output)
The type of movement (input or output) in the inventory allows the total quantity of items to be kept up to date . Inputs (acquisitions or purchases) and outputs (sales, losses, thefts, etc.) are essential for the accurate recording of items.
In automated inventory systems , these number database movements save the work of manually updating different information fields.
Current status of the article
The current status of the item provides specific information about the company that manages the inventory and the type of merchandise or items it includes.
For example, in the case of perishable foods, the status might indicate the remaining shelf life , while in an office furniture inventory, it might indicate whether the machine or item is currently in use or available for assignment to an employee.
Scheduled review period
It is an increasingly important feature in inventory systems , especially with the decline in manual inventories. Large company inventory systems are automatically updated in real time, even those managed in Excel can be automated.
The frequency of review and comparison of information is adapted to the specific needs of each organization. To determine it, a prediction of the life of the inventory is made, also known as forecast t , and control reviews are carried out after that time or continuously, as required by the company .
Types of inventory that exist
Different types of inventory can be classified into various categories based on their function and purpose:
Stock control inventories
Planning and management inventories
Consignment inventory
Factory Supplies Inventory
Online inventory
Next, we will explain how a company's resources and assets are organized for more efficient and effective management.
Stock control inventories
This category includes various types that allow you to monitor and manage stocks efficiently, thus ensuring adequate supply and smooth operation.
Beginning inventory: provides detailed information on products, items, materials, etc., as well as their value at the beginning of a period or accounting year. It generally coincides with the ending inventory of the previous period.
Final inventory: This is carried out at the end of an accounting period in order to determine the quantities or stocks of materials, products, articles, etc., as well as their value. Its objective is to identify the profits or losses of the period. In addition, the value of the final inventory facilitates the preparation of the budget for the following year.
Finished goods inventory: This is responsible for recording products that have completed the manufacturing process and are ready to be sold. It is used in factories to transfer these products to the warehouse and continue their journey in the supply chain.
Work in process inventory: This is used during the manufacturing process, especially in large factories, to monitor the progress of the transformation of raw materials into finished products. Its objective is to know the production rate.