What are the 4 types of inventory?
The inventory is one of the largest physical assets that reflect the management’s efficiency in operating capital, which is listed on the assets side of the balance sheet, and there are many types of inventory and there are 4 basic types of inventory we will show you in this article, and in general if you want to run your business To effectively reduce your costs, you are in dire need to understand the special types of inventory, which we will present in some detail and explain how LOGSITAT logistics solutions can help you through the inventory management program that it provides to you.
What is the inventory?
Inventory is an asset that a company holds either to sell or to use in production; consequently, the inventory is divided according to its function into two types: sales inventory, which is finished products ready for sale, and production stock, which includes raw materials and semi-finished materials (in operation).
What are the 4 types of inventory?
Inventory has a number of different classifications, and each classification has a special importance in the supply chain, and in general, there are 4 types or stages of inventory.
And in order to be able to manage your inventory effectively, you are in dire need of a good understanding of the four types of inventory, and the following is an explanation of those types:
1. Raw Materials
One of the most important types of inventory is raw materials, as they are the basis for turning your inventory into a finished product that can be used.
2. Work-In-Progress
The second type of inventory is the stock in progress or the one that is still being worked on, and it includes raw materials, labor and general costs, and it is also important because without it the final product will not be provided, and if you provide medical products, the packaging in which those products will be placed is The part that can be considered work in progress.
Finished Goods
The third type of inventory is finished goods, and it is the most direct type of inventory, because it is finished goods that are already completely ready for sale and display to the public.
Overhaul / MRO
We can define MRO inventory in the name of maintenance, repair and operating requirements, and it includes those small details in any commodity or product that you provide, as it represents the element used in the production of the forum itself, but it is not included in the final product, such as the gloves that you used to handle the medicine package that you manufacture, for example.
How LOGSTIAT Inventory Management Software Can Help
LOGSITAT inventory management software can help you monitor all activities related to your inventory.
The inventory management system helps you to organize your inventory, by using LOGSTIAT modern technology that automatically distributes shipments with a programmed audio system for each case in your warehouse,
The following are the most prominent services that LOGSTIAT inventory management software provides:
- Once you scan the barcode, you can know the destination of the shipment.
- A sound system for every situation and city.
- A smart system that refuses to receive duplicate shipments and informs you of the error.
- Automatic update of every shipment once shipments are scanned.
- Extracting data and reports and saving them for this system.
- Printing labels for each shipment automatically in case the shipment is scheduled.
- It does not require experts to handle the system and more manpower.
- Do not lose any scheduled shipment, extract it and prepare it for delivery.
- Alerts for shipments not sent for delivery.
- View alerts for duplicate or unregistered shipments.
- Alerts on shipments that have not been returned to your customers in the required time.
