Rakeen Developer implemented their manual IT asset inventory system to automation. This inventory (M Trading) is the management of inventory and stock. As an element of supply chain management, inventory management includes aspects such as controlling and overseeing ordering inventory, storage of inventory, and controlling the amount of product for sale.

Reorder Point

Should inventory reach a specific threshold, a company’s inventory management system can be programmed to tell managers to reorder that product. This helps companies avoid running out of products or tying up too much capital in inventory.

Asset tracking

When a product is in a warehouse or store, it can be tracked via its barcode and/or other tracking criteria, such as serial number, lot number or revision number. Systems. For Business, Encyclopedia of Business, 2nd ed. Nowadays, inventory management software often utilizes barcode, radio-frequency identification (RFID), and/or wireless tracking technology.

Service management

Companies that are primarily service-oriented rather than product-oriented can use inventory management software to track the cost of the materials they use to provide services, such as cleaning supplies. This way, they can attach prices to their services that reflect the total cost of performing them.

Product identification

Barcodes are often the means whereby data on products and orders is inputted into inventory management software. A barcode reader is used to read barcodes and look up information on the products they represent. Radio-frequency identification (RFID) tags and wireless methods of product identification are also growing in popularity.

Modern inventory software programs may use QR codes or NFC tags to identify inventory items and smartphones as scanners. This method provides an option for small businesses to track inventory using barcode scanning without a need to purchase expensive scanning hardware.

Inventory optimization

A fully automated demand forecasting and inventory optimization system to attain key inventory optimization metrics such as:

• Reorder point: the number of units that should trigger a replenishment order
• Order quantity: the number of units that should be reordered, based on the reorder point, stock on hand and stock on order
• Lead demand: the number of units that will be sold during the lead time
• Stock cover: the number of days left before a stock out if no reorder is made
• Accuracy: the expected accuracy of the forecasts

Purpose

Companies often use inventory management software to reduce their carrying costs. The software is used to track products and parts as they are transported from a vendor to a warehouse, between warehouses, and finally to a retail location or directly to a customer.

Inventory management software is used for a variety of purposes, including:

• Maintaining a balance between too much and too little inventory.
• Tracking inventory as it is transported between locations.
• Receiving items into a warehouse or other location.
• Picking, packing and shipping items from a warehouse.
• Keeping track of product sales and inventory levels.
• Cutting down on product obsolescence and spoilage.
• Avoiding missing out on sales due to out-of-stock situations.