Let’s continue our journey in decoding the inventory terms and its management which till date always remained behind those walls of the warehouses and away from the understanding of the common public.

Let’s continue where we left yesterday

𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝒗𝒔. 𝑪𝒚𝒄𝒍𝒆 𝑪𝒐𝒖𝒏𝒕𝒊𝒏𝒈 – “Taking inventory” is the process of physically counting all stock, once a year in most cases. Cycle counting is the practice of counting a selected set of stock more often. Cycle counting serves as an important means of checks and balances to ensure the amount of inventory represented in the inventory management system is what you have on the shelf.

A cycle counting best practice is to count specific SKUs regularly and integrate it into the daily tasks of warehouse staff. We may determine different standards for different types of inventory, such as performing a cycle count of top-moving SKUs or higher-value items.

𝑫𝒆𝒎𝒂𝒏𝒅 𝑷𝒍𝒂𝒏𝒏𝒊𝒏𝒈 𝒂𝒏𝒅 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 – Demand planning is an important part of successful inventory management. It is the process of determining how much of each item you anticipate selling, and when. Once demand is determined, inventory management follows the flow of goods from the supplier through production and ultimately fulfilling customer orders.

𝑯𝒐𝒘 𝑰𝒔 𝑰𝒏𝒗𝒆𝒏𝒕𝒐𝒓𝒚 𝑴𝒂𝒏𝒂𝒈𝒆𝒎𝒆𝒏𝒕 𝑫𝒊𝒇𝒇𝒆𝒓𝒆𝒏𝒕 𝑭𝒓𝒐𝒎 𝑶𝒕𝒉𝒆𝒓 𝑷𝒓𝒐𝒄𝒆𝒔𝒔𝒆𝒔? – People sometimes confuse inventory management with related practices. Inventory management controls all stock within a company. Supply chain management manages the process from supplier to delivering the product to the customer. Warehouse management is a part of inventory control and focuses on stock in a specific location.

~ Inventory Management vs. Inventory Control: inventory control is a part of the overall inventory management process. Inventory control manages the movement of items within the warehouse.

~ Inventory Management vs. Inventory Optimization: Inventory optimization is the process of using inventory in the most efficient way, and as a result minimizing the dollars spent on stock and storing those items.

~ Inventory Management vs. Order Management: Inventory management is responsible for ordering and tracking stock as it arrives at the warehouse. Order management is the process of receiving and tracking customer orders. Software often combines both tasks.

We shall continue discussing these differences in tomorrow’s post and till then a shout out to all the readers to keep an eye on any of such needs wherein our end-to-end consulting by Synergeze Consultants Private Limited may play a role in fulfilling the need and refer them to us. We are just a click away

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