Conducting a business inventory such as storage inventory can be a headache to any business owner, especially when you have to take note carefully of the pertinent details. Storage inventory involves the process of holding and storing materials that undergoes a transaction as well as accounting processes.
Since business is a huge factor that affects a country’s economy, it is very important to understand and have knowledge about Inventory Investment since it is an integral part of a country’s gross national product that determines a country’s product that would be sold eventually or at a later part of the year.
Food Storage Inventory Template
Storage Unit Sample
Organizing Storage Inventory
When organizing a storage inventory, it might be helpful to acquire an automated inventory database. Inventories allow you to track certain items needed for everyday activities.
Companies that rely heavily on certain equipment, for example, need something like an equipment inventory so that company operations run smoothly. In fact, any business needs to manage their supply effectively in order for the business to maintain its daily activities.
- Labeling the products with the help of stickers is a simple but effective way of organizing an inventory. It would be easier to track, remove, and return an item to its designated place.
- Clustering products of the same type is another step of organizing an inventory storage. In the event that the products, materials and equipment is abundant in the warehouse, grouping them is the most convenient way to determine them.
- Arranging the stocks vertically instead of horizontally will make it look neat. It will also save space and time in locating them.
Organizing the storage of inventory is considered very important because it helps one to easily identify the goods that needs to be removed in the warehouse for the purpose of distribution. Aside from identifying it easily, it also helps save time.
Types of Inventory
A simple inventory requires simple and basic procedures and other related matters. Different types of businesses require different types of inventories.
- Work-In-Process – This refers to the total cost of the partially completed manufactured products.
- Finished Goods – This simply refers to the completed part of the product or the products ready for distribution to their respective customers, retailers, wholesalers and sometimes on distribution centers. Finished goods are those products that already passed the final inspection stage.
- Transit Inventory– This generally refers to the products and goods that have not yet reached their respective wholesalers and retailers that they need to be transported from one company to another. Failure to track transit inventory would lead to inventory and accounting irregularities.
- Anticipation Inventory – This type of inventory is created in the event that a retailer or wholesaler will anticipate with the high or low percentage of the demands of products. This is very helpful in times when demands become unstable, so being able to use this type of inventory helps to cope up easily with any circumstance may arise.
- Cycle Inventory – This is the method of tracking a business more often and frequently to make sure that the concept of economic order quantity is balanced.
Inventory is very important in any type of business for it helps in maintaining proper balance of a business’ different transactions. So manage your inventories well with the templates available on this page.