As an accounting professional, I am aware of how important inventory management is to a business or an organization. Effective and efficient inventory management results to better performance for the company. It is important that a company has the level of inventory that will meet the demands of the consumers (or in the case of the raw materials, the production department) and yet doesn’t tie up their funds and resources in inventory and storage costs.
With the advent of technology, most companies already implemented computerized system of inventory which results to real-time reporting of the status and levels of inventories. While some companies still rely on manual counting of inventories, a computerized system (especially on large supermarkets) gives the management more real-time assessment of the levels of inventory which can help them decide on the measures that they will undertake (ordering, purchasing, even selling at a discount).
Some companies opt to hire the services of third-party logistics (3PL)firms to take the bulk of the inventory management task off their company. These 3PL firms usually provide transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding services to their clients. With a lot of information to process, it is important that they use some warehouse management software and third party logistics software for their clients to make their operations smooth.