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What is Inventory? How to Manage Inventory in the Digital Age?

Inventory usually refers to two topics. The first one is accounting which is about the company's financial situation. These are purchase, sale, goods, and value of money. The other one is the operational process of the company's production. These are all the products, interests, and spacers the enterprise uses in production. Inventory is vitally important to many companies. Thanks to the list, the stock is kept, and the preparation of the products is determined.

You can achieve efficient and fast results with technological and smart inventory management systems that keep up with the digital age.


What is Inventory Management?

To adapt to the pace of change in the ever-evolving business world, you need to be a well-resourced and planned business. In order to provide these conditions, your resource measurements and management should be supported by a fast and practical follow-up system suitable for the change in the business world. Inventory tracking and management is an important part of companies' resource management. Inventory tracking is a system that correctly records the companies' resources, prevents incorrect counts, and prevents problems that may occur during the transfer period.

Inventory management refers to the order of the raw materials companies need for the product they want, the storage of the products, and the use of the same products in the production process. Inventory management is fairly important for companies because excess or shortage of stock may create problems. At the same time, the stock is a risk that must be managed. In addition, inventory management enables the elimination of these risks. For correct inventory management, it is crucial to know the stock levels and the number of products that need to be stored. For good inventory management, you should know to answer these questions "How long should the products that need to be stored be ordered?" and "Where are the products stored?".

Unlike the traditional inventory management approach, Smart Inventory Management solutions facilitate digitalization using IoT, Industrial Internet of Things (IIoT), and RFID (Radio Frequency Identification) technologies are used in the Smart Inventory Management approach, which enables end-to-end automation. RFID is a technology tracking system that supports inventory management systems. RFID simplifies inventory management by scanning new inbound shipments into the system or outbound shipments using mobile scanners. RFID tags can be active, broadcast a continuous signal, or be passive. RFID tags are the best method always to provide real-time data and insights about where inventory is located.

Types of Inventory Management Systems:

● Manual Inventory Systems: This management system is the least developed method. It is also connected to the physical count and writing details in the paper or recording the electronic table. It is commonly used by small businesses.

● Periodic Inventory Systems: It is an inventory management system in which an inventory count is performed at the end of an accounting period.

● Perpetual Inventory Systems: The most advanced system utilizing automated software solutions. Thanks to RFID technology, it offers the most accurate and fast data.


How to Create Smart Inventory Management?

Inventory management should follow and include all steps, such as raw materials, selling, and stocks. It is essential for any business, big or small. To realize this management, it is necessary to determine the appropriate inventory management strategies. While some businesses need excel tables for management, others can use private and corporate software. According to some research, while only 33 percent of companies in global manufacturing markets use any inventory management software, 67 percent of the companies surveyed stated that they still keep their inventory management in Excel spreadsheets. Companies using Excel spend an average of 18 hours each month manually transcribing inventory data into spreadsheets.

An RFID tag is first assigned to each stock item in the smart inventory management process. This tag, which acts as a receiver, contains an identification number that digitally stores all information about the relevant item. When scanned with any RFID reader, the product model, stock number, expiration date, and similar information stored in the cloud are shown to users.

Key Advantages of a Smart Inventory Management System:

The smart inventory management solutions implemented with IoT and RFID technologies enable manufacturers to save nearly 20 hours each month, as well as to manage their inventories without errors and access real-time data on warehouse operations.

The smart inventory system provides means to automate manual tasks such as item tracking and counting, inventory database updating, report generation, restocking, etc., which saves time and effort and reduces the risk of human error.

These advanced systems can process more data than humans and work more accurately by detecting patterns that may escape the human eye.

The smart inventory management system helps establish your reputation as a reliable business and build lasting relationships with your customers thanks to timely shipments and analytics-driven planning to prevent overselling and ensure stock availability.

Solidbooster allows you to control multiple database servers from a single panel. It is possible to connect to various database servers using a single platform. This way, you can carefully examine and reduce the use cost. In addition, you can instantly monitor the servers' status, providing you with warnings and guidance against possible dangers. With Solidbooster, you can provide inventory management most effectively and reach comprehensive solutions.

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