The different types of inventories in logistics
13 October 2021
13 October 2021
Each year, companies must conduct an inventory on all products. This can be time consuming. That's why it is important to automate inventory management and stocktaking with an optimized solution in order to increase efficiency and productivity.
There are different types of inventories that correspond to a different way of working in each company. They differ according to the periodicity, the storage, the reference. The purpose of the inventory is to control stocks, reduce errors and logistic problems, label and respect the quantities requested.
Beware there is not a perfect inventory, each company determines the type of inventory according to its activity.
The book value of the inventory :
The inventory according to the periodicity :
Indeed a product is differentiated by its characteristics such as size and weight but also by the type of storage.
Indeed each product does not have the same function. Each product is stored according to its function.
We distinguish between :
There are obviously other types of inventories to take into account :
There are also,
- The management of rotating or cyclical stocks : the inventory records the product data, particularly its reference number, in order to respond as well as possible to the demand for replenishment
- The management of dormant, dead or lost stocks : the inventory renames the products whose reference exceeds a certain security: date, breakage, damaged products and which cannot be sold. This is how the company's loss rate is calculated.
- The available stocks : corresponds to the inventory of the products at disposal and which are ready to enter the sales process.
- Online inventory : corresponds to an inventory that lists a set of product references ready to enter the production line.
- Physical inventory : product inventory that is counted by hand with each reference.
- The management of intermittent inventories : this inventory allows the counting of stocks for an accounting evaluation.
- Management of permanent inventories: inventory that allows to control and evaluate the different stock movements in a regular and constant way. This allows you to visualize the quantity, the composition of the stocks and the value of the stock in real time.
- Rotating inventory management: the inventory counts all the products in stock and carries out an inventory regularly over short periods.
There is a large number of inventories that correspond more or less to each company. The goal of each inventory is common: it allows to optimize the storage space, the management of stocks and flows in order to satisfy the customers of a company. Each company must choose its inventory management to save time but also efficiency and productivity.
Automating inventory management is a real advantage for companies. This is done by a WMS warehouse management software that offers the management of several types of inventories regardless of your industry.
The advantages :
Monstock allows you to manage your stocks but also your inventories from end to end and whatever your sector. Automate and simplify the management of your inventories thanks to the Monstock WMS solution which accompanies you in this process.
Discover our use case here which brings you resources and advice on inventories.
For more information: contact the Monstock team