Some businesses need to look into inventory management to better organize their business and increase productivity levels.
The main aspects of inventory management businesses need to utilize!
First, we need to know what inventory management is before you can decide if it is the right call for your business. Inventory management is a process and method of helping to source, find, store, and sell inventory. Inventory can be classified into different groups, such as components and products. In the business sense, inventory management typically refers to buying the right stock in precise quantities, ensuring you get the right amount of inventory at the best price possible.
Inventory management also includes various business aspects, such as controlling and determining the time and the price of purchases, manning the stock storage in your business, controlling how much product you are selling on the market, and completing and fulfilling orders.
Retail inventory management is a part of inventory management that refers to business-to-consumer selling, with the main types of retail management being online or offline retail. Online refers to eCommerce stores that happen in the digital marketplace, whereas offline retail is through a physical store location.
So, what is the importance of inventory management?
Why should you use Odoo for your inventory manager needs as a business? For any type of company or business that focuses on producing or selling goods, the value of inventory is one of the most important aspects of your company. For companies that are using enterprise resource planning, you need to take into account how to utilize inventory management to the best of your ability to reduce poor customer service or excessive overhead costs.
By using Odoo and inventory management for your business, you can help reduce daily costs and fees, optimize the fulfilment of orders, provide enhanced customer service experiences, and prevent your business from theft or loss.
To get started with Odoo and inventory management, you need to first take into account the various formulas you can use for this process: economic order quantity, days inventory outstanding, reorder point, or safety stock formula.
- The economic order quantity formula is the number of products you should buy to reduce the total cost of holding stock. The economic formula helps give you a standard idea of how much to purchase to make a profit.
- Days inventory outstanding formula is the number of days it takes for you to convert inventory into a profit. This can give you insight as to how long you may have to wait to earn a profit.
- Reorder point formula helps you answer the question of when is the right time to purchase more stocks.
- Safety stock formula helps you with an emergency formula and buffer if you are not doing well financially.
Conclusion
For those who need to boost their daily productivity and reduce total costs, consider using inventory management for your business. Using Odoo can help you to properly utilize your inventory for the highest profit return and boost your daily productivity levels.