About the Inventory Management Process Template
What is Inventory Management Process (IMP)?
If you have a business based on trading activities, you might know the importance of inventory management. Inventory management is the core and the central part of any trading business. It can be defined as ordering, selling, storing, and using all the raw material and tracking it. This process includes raw materials and everything part of the trading process, such as different components, final products, and warehousing.
Hence, the inventory management process can be a great asset for a company. It allows them to work smoothly and makes it easier to navigate everything.
8 Steps in common Inventory Management Process
The inventory management process is a straightforward method through which you can navigate all the things in your inventory. But if you want to implement this management process in your business, then there are a few straightforward steps that you need to follow.
- Product is delivered to your facility. The first step is when the goods or the raw material enters the inventory.
- Product is inspected, sorted, and stored. The next step is to sort everything appropriately. You can choose different methods such as cross-docking, drop shipping, and other strategies to store everything.
- Inventory levels are monitored. This can be through physical inventory, inventory cycle count, or a perpetual inventory software.
- Customer orders are placed. Customer places their orders either online or in person.
- Customer orders are approved. The company then approves the orders that the clients place.
- Products are taken from stock. After the orders are approved, the company packs the goods and delivers them to the customer.
- Inventory levels are updated. Everything is recounted and managed again. You can keep the record manually or digitally.
- Stock levels trigger reordering. Now you can reorder all of the raw materials according to your sales. This will keep the stock levels up to date, and you won't have anything missing.
Benefits of Inventory Management
Using the inventory management process in your company can be very beneficial. To run your business smoothly and prevent any problems, you must start practicing the inventory management system. Following are a few benefits of implementing the inventory management system.
- Improving the accuracy of orders.
Implementing the inventory management process in your business will give you an idea of how much material and goods are needed. This will prevent any shortage of material and allow you to run your business smoothly.
- Organization of warehouse.
Keeping track of everything in the warehouse and keeping everything in its place when you get the delivery helps the organization. Keeping the products in the manner of the best seller also enhances the business's productivity. Hence, this thing directly affects your production rate, and you can make the customer happy and satisfied.
- Increasing the productivity of the company.
Another great thing about implementing the inventory management system in your business is increasing efficiency. When you have everything organized, you have all the raw materials to prepare the order; then, you can see the difference. Having everything on hand improves working skills, reduces time, and enhances work quality.
- Saves time and money.
You will see a drastic and remarkable change in the time you spend and the money. When you have a good inventory management system, you don't have to recount everything again and again. When you know the amount of stuff in the inventory, you don't have to purchase more goods. Therefore, saving both your money and time.
- Makes the customer happy and satisfied.
Lastly, when you have the inventory system in your business, you give the best to the customer. You produce the best products, deliver the orders on time. So, this makes the customers come back and order more from the company.
How to make Inventory Management Process with Templates
After looking at the benefits of the inventory management process, do you also want to use it in your business? But finding the suitable templates to make these inventory templates and maps can be pretty challenging. So EdrawMind is where you can find some great and easy inventory management templates.
Following are some examples that will help you figure out how to make the inventory management templates.