4 solutions for you to keep track of your inventory

Inventory management is a key aspect for companies. The information contained about the available goods is essential to define sales and purchase strategies in a business.

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Inventories must be carried out according to the needs of each company, but to facilitate the process and reduce errors, it is necessary to have resources available in the market.

With that in mind, let’s talk a bit more about merchandise inventory and indicate 4 technological solutions to maintain good inventory control. Keep going and learn more!

What is inventory?

Inventory is the list of goods and materials stored under the company’s responsibility, either internally or externally. These items may be intended for various uses, such as resale, raw material, use and consumption, or service materials.

Inventory is of utmost importance to a company. It must be standardized to ensure effectiveness and confidence in the merchandise counting process. In short, it is used to identify, count and classify all material items in the organization.

In Brazil, there are rules and laws for the regulation of the creation of an inventory. The Federal Accounting Council (CFC) established, with support from the Brazilian Accounting Standards (NBCs), the standards required for the preparation of an inventory.

All companies that have stock must keep a list of the goods recorded in a book, known as the Inventory Record. It contains the entire list of products stored in the company and is used to close the periodic accounting and tax balance sheets.

How is this list of stored goods and materials made?

An inventory can be performed in a variety of ways. Companies adopt the format that best suits the business or according to tax obligations. Check out how each type of inventory is carried out.

Annual inventory

This is the type of inventory most used by companies. It is simpler and is only calculated once a year. It is ideal for companies that do not stock perishable products, such as clothes, shoes, appliances, among others.

Periodic inventory

Periodic inventory is also known as cyclical. Updates are made periodically according to the movement of the goods, and may be daily, weekly or monthly.

Rotational inventory

This type of inventory is also carried out in pre-established periods. The main purpose of rotating stock counting is to identify failures in the storage of goods and other possible problems, such as losses and expired expiration date.

Partial inventory

Partial or dynamic inventory is ideal for companies presenting a wide variety of products. Only a portion of the stock is checked periodically. Each organization uses its criteria to define which items will be inventoried.

General inventory

When the company chooses to evaluate the entire inventory at once, it is denominated as general inventory of the stock. In this method, all products are counted, including those for use and consumption. Companies with a wide variety of goods usually do not opt for this type of record.

How important is inventory accuracy?

Inventory accuracy is also called inventory auditing. Through it, the level of quality and reliability of the data obtained in the calculation of the items is analyzed.

For this, the list of goods in the system and the list of those physically existing in the company are cross-checked. When the system inventory data does not match the actual count, it is considered unreliable or inaccurate.

The organization of a stock depends on its accuracy. Without a reliable inventory, the company may have problems due to inaccuracy, including:

• Lack of inventory control;
• Lower quality of services offered;
• Chance of interruption of supply of goods or services;
• Decrease in labor productivity;
• Financial loss and increased spending.

The accuracy of a stock offers several benefits for business logistics. Among them, two stand out. See more below to understand!

Selected Orders

The correct inventory allows orders to be done faster and reduces unforeseen events. After all, the process of sorting, packing and shipping is much easier with a 100% reliable stock.

Order delivery is a key factor in gaining market recognition. The faster and more efficient the company is, the greater the customer satisfaction. Another important point is that the less time the team spends separating the goods, the more they gain in productivity.

Reduction of costs and losses

An inventory with good accuracy ensures savings for the company. The whole team can meet demand more efficiently and, consequently, productivity increases.

Losses are a real problem in large companies. Now, when there is a regularly checked and reliable stock, these are more unlikely. Perishables or products with shorter shelf life are also identified and used first.

What are the 4 useful technologies and equipment in an inventory?

Currently, the use of technology is essential in inventory management. Systems add functionality for process optimization and to increase inventory reliability.

With them, it is possible to categorize the information, reducing the time to perform the service as well as reducing costs. Next, get to know 4 essential systems to get your logistics inventory right.

1. Warehouse and Stock Management (WMS)

Warehouse Management Systems (WMSs) offer greater accuracy and speed in controlling inventory in the warehouse. For companies with a high number of references as well as a high complexity of inventory counting, a WMS is essential, as it reduces the possibility of errors.

Some of the functions of a WMS system are:

• Check and organize the periodicity of the inventory and the characteristics that must be considered, thus being able to schedule the calculation of containers, boxes or any other item;
• Limit the areas of the warehouse in which to determine the inventory of goods (separate by location);
• Define the priority rules for the products based on the logistical parameters (expiration, lot number, unit cost, turnover, among others) to be able to identify them more easily and inventory the most relevant ones;
• Integrate all types of data reading devices, such as radio frequency terminals, voice picking systems and others;
• Effectively control the warehouse, with a permanent stock calculation, so that the information is updated constantly.

2. Technology for separation of goods and movement control (RFID)

Radio Frequency Identification (RFID) tags are an identification system that assists in the speed of counting. It uses radio waves to emit and receive information from a product.

Chips are integrated into an adhesive label to store the object’s information, modified throughout the product transition process in the supply chain.

The technology allows you to read the information only by passing the reader over the container, without having to handle or view the item’s label. After this process, the data obtained is directed to the system.

3. Transportation Management System (TMS)

TMS is a logistics system that uses technology for solutions that suit inventory control. With it, it is possible to plan, execute and improve the movement of goods. By using it, companies can control all inventory operations, from product output to its final phase, that is, delivery.

One of its functionalities is the calculation of inventory. It allows you to control the company’s products, orders, purchases and all movements of the goods, ending with the write-off of the item in the system.

4. Yard Management System (YMS)

Another essential system for inventory control is the yard management or Yard Management System (YMS). It is used to manage the entry of inventory and the transportation of products.

It is with this that yard managers can monitor the movement of transport, identifying the points where the average length of stay is higher, indicating the probable logistical problems and solutions. It provides cost reduction, increased speed, process improvement and complete transportation analysis.

How is it at the Wilson Sons logistics centre?

Wilson Sons is the largest integrated port and maritime logistics operator in the Brazilian market and offers supply chain solutions, with over 180 years of experience. The company has national coverage and offers complete solutions to more than 5 thousand customers, including shipowners, importers and exporters, the oil and gas industry, renewable energy projects, the agribusiness sector, as well as other players in different segments of the economy. 

The company ensures the transparency of its activities related to ESG practices, with social, environmental and governance commitments, especially on issues related to sustainability.

At Wilson Sons, inventory management is used with the use of state-of-the-art technology. With the most modern systems available, we guarantee better planning, visibility and inventory management in the short, medium and long term.

Inventory is essential to a company’s business. The use of technology aims to reduce errors and losses of goods. That’s why it’s important to have solutions that ensure the accuracy of your inventory record.

Did you like our inventory solution tips? Are you familiar with Wilson Sons logistics solutions? Learn more about using technology for logistics center inventory management!