Types of Inventory

Many fulfillment houses place priority on good customer service, but they often don’t know how to also make it more efficient. However, they need only look to their inventory.

If you’re in product fulfillment, you need to successfully manage your inventory; in fact, failing to do so can mean not having any clients. That’s why it’s essential that you have a proper inventory management system in place to make sure your clients get items in pristine condition and on time.

Today’s inventory management systems are often classified based on the types of inventory you have. This knowledge can help you implement the correct inventory management systems for your business.

1. Raw Materials

You might be dealing with products that are assembled in-house that require raw materials, like steel or wood. This is fine, provided you always keep in mind how much raw material you need to keep your operations running smoothly. Also make sure you have all the right tools and means of handling raw materials, like storage tanks and pallets.

2. Works in Progress

Client products are often things that are built over time, like a project to be completed before it is shipped out; this means they require a wide range of inventory items. To meet this need, you may require adequate warehouse space, as well as a quality digital tracking system to manage these jobs so that they are completed on time and so that you always have the right materials on hand to complete them. It also helps to use these systems for future large-scale projects so they are well-planned and so you can order the needed materials in advance.

3. Finished Goods

Management of inventory is also important. Product distributors and wholesalers usually monitor finished goods, but their data might refer to your company as the point of origin. If something goes wrong, like a failed government inspection or inability to ship the item overseas, you have to have the necessary records in order to address these problems while also making sure clients’ orders are completed and shipped.

4. Service Inventory

There are a lot of larger products out there that require more attention upon their ordering. Repairs, services, and updates are crucial to certain products so they remain functional; that’s where you come in. That’s because you may have the service inventories available that are needed to utilize these products, such as parts, tools, lubricants, gloves, and more. This is a sector of inventory that is extremely lucrative, as you can ship both the large products and the supplies to clients that use them.

5. Transportation/In-Transit Inventory

Also called “pipeline inventory,” it means to have inventory that has to be shuttled from one place to another; you see it a lot in the automotive and industrial manufacturing sectors. You have to consider how your business is going to move materials (rail, refrigerated truck, etc.) and how to implement a digital inventory tracking system.

This breaking down of one’s inventory allows fulfillment companies to properly maintain their products and protect their reputation for quality customer service. Once you start segmenting your inventory, you can see where to direct your attention and why.

Need solutions to your product fulfillment problems? APS Fulfillment, Inc. has the knowledge and services to make your direct mail and product fulfillment ventures more successful. Contact APS Fulfillment, Inc. by e-mail at info@apsfulfillment.com, visit their web site at www.apsfulfillment.com, or phone at (954) 582-7450.