Inventory Management

Inventory Management is used to monitor and control stock levels, inventory, and storage items, making it a part of Supply Chain Management (SCM). An important function of inventory management is the detailed recording of every newly received or returned product in the Incoming Goods or Outgoing Goods section of a warehouse or sales location. Optimal inventory management aims to manage goods and materials in such a way that there is always sufficient stock to meet demand, while avoiding unnecessary storage costs due to overstock. The core objectives of inventory management are to ensure delivery capability and customer satisfaction while maximizing the efficiency and profitability of warehouse processes. Central processes in inventory management are:

1. Requirements Planning (what is needed when and in what quantity?):
   Requirements planning deals with the determination of future material and goods requirements. The aim is to forecast requirements as precisely as possible in order to avoid overstocks or bottlenecks.
   
   
2. Inventory Planning (how much should be in stock?):
   Inventory planning aims to define optimal stock levels and strike a balance between avoiding stock-outs (service level) and minimizing inventory costs (capital costs). To this end, it is necessary to define required minimum stock levels, maximum stock levels, safety stock levels and optimum stock quantities. 
   
   
3. Procurement Planning (how is demand covered?):
   Procurement planning deals with the organization of material procurement in order to cover the identified requirements in a timely and cost-efficient manner. The quantities, times and suppliers to be ordered must be determined.

Digital Inventory Management using a Warehouse Management System

A Warehouse Management System (WMS) plays a central role in modern Inventory Management. It is a specialized software that organizes, monitors, and optimizes all activities and processes in the warehouse. The WMS can monitor stock levels in real time and track their movements. This brings numerous benefits for Inventory Management, including:

1. Real-Time Transparency: A WMS enables precise tracking of all stock levels in real time. Businesses always know which goods are located in which area of the warehouse and in what quantities. This minimizes errors and improves stock availability.

2. Automation and Efficiency: The WMS automates many inventory management tasks, such as stocktaking, storing and retrieving items, and reordering goods. This reduces the effort required for manual activities and significantly accelerates processes.

3. Demand-Driven Inventory: Through precise data analysis, a WMS supports planning and forecasting demand. This helps avoid overstock and optimally adjust inventory levels. The system can automatically trigger orders when needed to prevent shortages.

4. Optimized Warehouse Organization: The WMS also analyzes warehouse space usage and suggests optimizations to reduce travel times and utilize storage space more efficiently. This contributes to faster picking processes and better warehouse utilization.

5. Inventory Control and Simplified Stocktaking: The WMS simplifies regular inventory checks and stocktaking. Using scanners or other technologies, stock movements can be recorded in real time and updated in the system as needed. This reduces errors and ensures higher inventory accuracy.

6. Client Management: Stocks from different companies or business units can be managed within one system.
   
   
7. Definition of Blocked Stock: Stocks that are not directly available (e.g. due to quality checks or returns) can be classified as blocked stock. The ability to define these individually in the master data offers flexibility when handling different types of stock and situations. 
   
   

8. Reports and Analyses: A Warehouse Management System offers comprehensive reporting and analysis functions. This enables businesses to identify weaknesses in inventory management and continuously optimize their processes.

By using a WMS, inventory management becomes significantly more precise, efficient, and cost-effective. Companies can reduce storage costs, shorten delivery times, and ensure better availability of their goods. In today's Warehouse Management, a WMS is therefore a central tool for meeting the demands of modern Supply Chain Management.

The inventory management of the Bitergo WMS - Warehouse Star consistently considers tenants, serial numbers, batches, and expiration dates. Blocked stock types can be individually defined in the master data.