In the consumer market, most businesses carry inventory that is consisted of goods or products. The inventory is kept in storage until it is processed for a transaction to make the income for businesses. Profit is the main goal in businesses, but it is hard to ensure profit is a certainty unless all measurement is properly controlled.
How to manage your inventory is an intricacy that most businesses are still struggling to achieve to fully track accurately. Whether the inventory is tracked sufficiency shows in the accounting books.
- Raw material – basic component to finish a product. It could be made of completely organic, element, extraction, or object. Whichever state the material is in, it is a commodity that can be measured to be brought in.
- WIP – work-in-progress material is different from raw material. Most likely the materials are processed but not yet in the state for sale. It could be half-dressed or assembled. The record of this stage is important as it can be sensitive to various factors.
- Final product – a completed good ready for inspection and sale. The state of this product may be sensitive due to market demand. For example, 2020 cars cannot linger in stock through 2021. The value depreciates more the longer it sits in inventory.
The basic management in processed goods may seem simple, but every step is crucial to time restrain and cash flow. All stages of the production line may impact the outcome regardless.
18 Wheels Logistics in Vancouver, British Columbia, has the updated innovation on WMS (Warehouse Manage System) to help our customers managing the inventory effortlessly. We also provide services in logistics and trucking TMS, copacking, and labeling. Contact us today to help you better control your inventories.