In today’s busy world, businesses in every sector rely on different types of inventory goods. Products, materials, components, and even cleaning products and packaging, are all classed as controllable physical assets within a modern inventory stream, and understanding how to manage them all is a critical part of day-to-day operations.

Top Inventories that Should Migrate to Inventory Management Software

Inventory takes many forms and, as technological advancements continue to transform logistics and infrastructure, there are almost certain to be new types of stock in the future. Here, we take a look at four main inventory types — from raw materials to safety stock.

1. Raw Materials Inventory Management
Accrued at the beginning of the inventory management cycle, raw materials are items used to manufacture and produce final products. A business may purchase raw materials to manufacture or assemble its products or else sell them to third-party organizations that then transform them into a finished product.

Raw materials are among the most essential stock items in an inventory chain. They dictate manufacturing rates and productivity, so effective and timely procurement is essential. Businesses should use an appropriate inventory management platform to track, manage and store their raw materials inventory.

2. Maintenance, Repair & Operations Inventory Management
Maintenance, repair, and operations (MRO) goods are those which are used as part of a manufacturing supply chain. They are the essential items that a business needs as part of its day-to-day production operations, including things such as PPE and safety equipment, parts and manufacturing equipment, cleaning supplies, and batteries. Many businesses overlook MRO stock as part of their inventory management strategy.

3. Work-in-Progress Inventory Management
Work-in-progress inventory refers to the goods that are no longer in their raw-material state, and aren’t yet completely ready for sale. Examples of this include a door or window that hasn’t finished its whole design and a car that hasn’t yet had its engine installed or a scented candle without a wick.


4. Packing Materials Inventory Management
Packing materials inventory refers to all the items required as part of logistics, warehousing, and delivery operations. It includes goods and materials that are used for both shipping items to customers and as a means of protecting stock in the warehouse — think boxes, packaging, paper, bags, and bubble wrap.

Essential Features of an Accurate Inventory Management Software

Managing inventory may seem straightforward. But with lots of moving parts and a cash flow to maintain, it’s a business function that requires commitment, investment, and a considered approach.

Below are four essential features that accurate inventory management software must have. These can be applied to all types of inventories, whether that’s raw materials or MRO.

1. Stock Prioritize: Some stock will fly off shelves while other items sell more slowly. Prioritizing your inventory will help you order the materials and goods you need to retain cash fluidity.

2. Product Tracking: Tracking product information throughout a supply chain is fundamental to effective inventory management. Cloud ERP software can facilitate accurate batch tracking, which is useful for grouping inventory items by barcode, lot number, and country of origin.

3. Inventory Auditing: Regularly auditing your inventory is a powerful way to avoid common management issues such as under- or overstocking, or product tracking inaccuracies. Performing regular stock checks is essential throughout the supply chain, reducing the likelihood of problems and backlogs further down the line.

4. Easy Analysis of SCM Operations: However tightly you control your inventory, inefficiencies, delays, or inaccuracies within the wider supply chain can have a negative impact on day-to-day operations. That’s why it’s critical to periodically analyze and review the performance of your supply chain: what works and what doesn’t. And do any of your suppliers regularly cause problems (late deliveries, missing items) that have a knock-on effect within your organization?

Effective and accurate inventory management software relies on having the right tools and processes in place to control stock efficiently. With a modern cloud ERP software like Averiware, you can make light work of managing even the most complex inventory infrastructure, with batch tracking, smart stock control, and other useful functionality facilitating competent and accurate management.