In order to function properly and make everything work, businesses need to perform inventory control. In this way, to optimize the processes and improve the productivity of the company, it will be necessary to know the types of logistics inventories. In this note we will tell you everything so that you discover the one that best suits your organization. Keep reading!
The importance of knowing the types of inventory in logistics
Having efficient logistics can ensure the success of our business. In other words, it gives us competitiveness in the market and the opportunity to differentiate ourselves. Thus, there is a great challenge in identifying the weak links in your processes for the implementation of a strategy.
So get a voucher inventory management can help businesses ensure that sufficient stock is available. The main objective will be to avoid product shortages to avoid stopping operations. With effective inventory control, our business becomes more productive and can even contribute to the customer experience.
In addition to the above, inventory helps analyze product rotation and movement. Thus, we can collect information on logistics costs, transit time, financial cost of stocks, dimensions, routes, available spaces, delivery control, among others.
For this reason, we recommend that you know the types of inventory in logistics to make the right decisions, financial and productive planning depending on the size of your business.
You might be interested in: How to do good inventory management?
The different types of inventory in logistics
To begin with, you should know that inventories are the essential links in our warehouse. It is the strategic point for the functioning of the organization. Let’s review the existing inventory types below.
Inventory according to its frequency
In this type of inventory, it is distinguished by its frequency, which is why it can be divided into four groups.
- Annual: It is that which is carried out once a year and which serves to confirm the results obtained in an accounting entry.
- Periodic: It has a predetermined frequency and includes the count of all the stored references.
- Turning point: Corresponds to regular counts, distributed throughout the year from reference groups. For example, it can be based on its value, revenue, expiration date, etc.
- Permanent or perpetual: It is constantly updated, records each entry and exit of items, and reflects the available stock in real time.
Inventory by function
There are inventories that can be carried out depending on their function. Next, let’s see its division.
- Transit: quantifies the products and materials that are temporarily kept in the warehouse and already have their final destination.
- Security or Reserve: Records the products and raw materials the company has to deal with possible production process failures, supplier delays, or unexpected increases in demand.
- Forecast or seasonal: Corresponds to the satisfaction of future demands, predictable with certainty and generally seasonal. It is intended to cover the unforeseen.
- Decoupling: Used to differentiate the inventory required for two manufacturing processes with different production rates.
Inventory by product
Inventory can be subject to product type and can be stored in four groups.
- Raw Materials: Determines the available stock of raw materials that are used to make the final product.
- Factory supplies: Corresponds to the materials used in the production process. For example, nuts or paint.
- Products in process: These are semi-finished products, that is, those that are still part of the manufacturing process.
- Finished Products: Collect the products already finished and available for sale.
➤ To read also: 6 keys to inventory management in logistics
Recommendations for optimal stock control
If you consider that your business needs organization and inventory control, you will first need to be clear about the needs. Therefore, before deciding what types of logistics inventories to carry out, consider the the objective or purpose, the type of references stored, the company’s activity and the specific dynamics of its operations. In addition, you can take into account the implementation of processes with ISO Standards to ensure the quality of your processes.
At Tradelog, we have a department specializing in inventory control and inventory management. We are a leading storage and distribution company with extensive experience in the industry. Would you be interested in receiving more information? Contact us.