Inventory management is a fundamental function in any company, as it has a direct impact on operational efficiency and customer satisfaction. A well-managed inventory not only ensures product availability to respond correctly to market demand, but also improves corporate operations, optimizes costs, enhances strategic planning, and facilitates on-time shipments. In addition, effective inventory management enables organizations to adapt to fluctuations in demand and ensure the quality of service, strengthening their competitive position in the market.

In this context, knowing the importance of inventories and how to record them correctly ensures that companies maintain a better organization, avoiding the accumulation of products that must be delivered to customers. For this reason, Delego wants to inform you about everything related to inventories, so that your company has the best possible planning.

Different functions of inventories

Companies that effectively manage their stockpiled products are the most chosen ones. In this sense, inventories serve multiple purposes:

• Ensure availability: maintain sufficient stock to meet customer demand without delays. They allow tracking of all products, as well as knowing which products are in stock.

  
  

• Optimize costs: they allow you to buy in large quantities, reducing costs through discounts and lower shipping costs. In addition, by having an inventory, it is possible to better analyze the price of each item.

  
  

• Improve planning: they help to forecast sales and plan purchases and production costs. In this way, under-production is avoided.

  
  

• Meet demand fluctuations: they allow them to face unexpected variations in demand without losing sales.

  
  

• Guarantee service quality: improve the ability to meet delivery deadlines and increase customer satisfaction.

  
  

• Waste reduction: minimizes the accumulation of obsolete or expired products, reducing losses due to deterioration or expiration.

  
  

• Improved planning and forecasting: provides accurate data for demand forecasting and proper planning of purchases and production.

Combining inventories with other areas of logistics

If your company works in the storing and distribution of products, there are surely several aspects of production that you must keep in mind. One of the main aspects is the control of the stored items. This is crucial to deliver them thoroughly, without any kind of failure.

Another fundamental aspect is the competitiveness of a company. This depends on customer satisfaction, which is mainly based on the expectation of receiving their shipments on time. In this sense, a company that organizes its distribution poorly will probably see its entire inventory management affected, since it will be overloaded with products that need to be delivered and avoidable shortages will be generated.

Keys to effective inventory management

Maintaining effective inventory control is critical to the success of any business. Here are some key tips for proper inventory consignment:

• Accurate information: it is essential to have accurate data on stored products. This allows you to determine if you have the supplies needed for production or sales, and to know when and how much to reorder.

  
  

• Monitor levels: knowing the stock of each product helps determine the right times to reorder. This avoids stock-outs or excess inventory.

  
  

• Reorder on time: don't wait until you run out of a product to reorder. Replenishing before supplies run out ensures that you have products when you need them.

Ultimately, good inventory management affects not only the financial results but also the company's reputation with its customers.

Inventories: key factors in logistics performance

As we know about the importance of optimal and efficient logistics, at Delego we know that planning is essential. For this reason, inventories have a fundamental function, since they are the basis of the logistics structure. Its correct use improves the operation and stock of production, allowing greater productivity in all company's areas.

If you would like to learn more about good practices in the organization and planning of a company's logistics, continue reading our blog.