The biggest challenge faced by companies today, especially retail companies is inventory management. Inventory management is a systematic approach to obtaining, storing, and taking advantage of non-capital assets (raw materials and finished goods). The right stock, at the right level, in the right place, at the right time, and at the right cost. This means with the existence of inventory management, the company will be able to control raw materials and production at the appropriate level so as not to cause excess or lack of stock which results in losses. This is indeed the biggest challenge because there are many aspects that must be managed.
Inventory Management Aspects
According to Sugiama (2013) inventory management includes aspects such as:
- Asset Requirement Planning
- Asset Procurement
- Asset Inventory
- Legalization of Assets
- Asset Operation
- Asset Maintenance
- Removal of Assets
- Assets acquisition
- And many companies still don’t know how to collect data on various assets and don’t know what to do with them.
“Data in 2015 states that 43% of retail companies state that Inventory Management is the number 1 challenge of overcoming the difficulties of managing corporate accounting, technology implementation, integration with e-commerce, order management or payroll”
Because of this ignorance, inventory management is also one of the most neglected parts of company management. Though inventory management is one of the most important management areas. And if the company carries out professional inventory management, it will get the following benefits. There are many benefits that can be obtained when the company performs professional inventory management.
Benefits of Inventory Management
a. Right Inventory
Know exactly how much inventory is needed to prevent shortages and excess raw materials and products
b. Adjust Turnover
Maintain asset turnover to ensure the product is not damaged, stored for a long time or undermined capital
c. Ensuring Products Are Always Available
Make sure the company has what consumers are looking for to maintain their satisfaction
d. Accurate Planning
Can be used as an accurate reference for evaluating and planning the company’s future
e. Optimizing Warehouse Settings
Optimizes warehouse settings so that they are easily accessed, thus speeding up the process of picking up, packaging and shipping specifically for products with the highest sales
f. Inventory Tracking
Able to coordinate inventory in many company locations according to demand and other factors
g. Save Time & Cost
Data that has been collected and can be traced makes it easier to calculate assets. You can also reduce the costs of slow-moving products so you can use them better in other areas that are more optimal
To get a lot of these benefits does require a fairly complex process. Knowing when to reorder, how much to order, where to store stock, etc. can quickly become a complicated process. But there are still many who make their inventory management manually. Most use Excel, Google Sheets, or other manual tools to track the asset database and make decisions about orders. And ultimately it leads to corporate chaos, shipping, and accounting calculations.
The solution to this problem is to switch to online-based inventory management software. With this system, inventory management procedures are able to carry out structuring and monitoring assets from end to end easily and accurately.
Can access reports in realtime.
The data is always updated
Can be integrated with other applications
If you have several branch offices, the existing data can be synchronized easily
System maintenance services available from the application service owner
Journal is one of the full-featured accounting software that can cover the management of company inventory. Although the software is engaged in accounting, the Journal inventory management feature is one of the best.