A robust inventory management process is crucial in this fast-paced global economy, where the demand for streamlined, automated operations is at an all-time high. Inventory logistics is one such solution that can provide this. It helps industries seamlessly execute their business operations while maintaining a stable inventory.

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But what exactly is logistics inventory management? It is more than procuring raw materials and churning them out as consumable finished goods. It covers some essential aspects like enhanced efficiency, productivity and inventory planning.

What This Guide Covers:

• What Is Inventory Management in Logistics?
• Core Steps
• Inventory Management Software
  • Features
  • Primary Benefits
• Conclusion

What Is Inventory Management in Logistics?

Inventory management in logistics is an essential part of the supply chain management network that helps formulate, organize, implement and control the efficient flow of goods. It is a complex process that aims to move inventories effectively in the supply chain while elevating customer satisfaction.

It also assists in maintaining cost control while seeking a balanced investment between carrying and buying costs. Primarily there are four stages of logistics inventory management, which include:

• Raw Materials: Before the final product transforms into a consumer good, the vendor must procure raw materials. It is important to differentiate between unused and stored items before you fulfill the production purpose.
• Work-in-Progress Inventory: The stored raw materials go through the manufacturing process while utilizing and modifying them into completed goods.
• Finished Goods: Once done with the first two steps and after conducting adequate quality checks, your finished goods are available for sale.
• Maintenance, Repair and Operation (MRO) Products: It is essential to develop products for future resale. You can achieve this by employing support items in the manufacturing process that aid in the MRO of these said products.

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Core Steps

Logistics inventory management plays an essential role in finding the perfect balance between the point of origin and consumption of the finished product. With strategic planning, it helps optimize workflows that are relevant to inventory and stock management. It also aids in order fulfillment, stock supervision, maintenance and storage.

Let’s look into the three core steps of logistics inventory management:

• Purchase Inventory: The first core step in this process is sourcing consumable raw materials. Vendors must procure and store these raw materials in the warehouse as an operational asset.
• Store Stock: To prevent potential stockouts, there is stock storage until it is necessary for production. Once the raw materials go through the manufacturing process, they get shipped back to the warehouse until they are ready for sale.
• Ensure Quality: Before the final product is ready for consumers, it goes through a series of quality checks. These controlled checks are for order fulfillment before they get approved for sale.

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Inventory Management Software

Whether you deal with inbound or outbound logistics, investing in inventory management software can greatly impact your processes. From inventory to warehousing, transportation and packaging, inventory logistics helps improve your business by managing shipping-related operations.

In order to fully convey what inventory software can do to improve your inventory logistics operations — or your inventory management in general — we’ve laid out some of the core features they offer and the benefits you can expect to reap from leveraging said features.

Features

First, let’s take a look at some of the common capabilities most inventory management systems provide, so you can get a better idea of how these tools can aid your inventory logistics tasks.

Discussed below are some of the primary features of inventory management software:

Inventory Management

Track product information from the point of origin to consumption using an effective logistics inventory management solution. Perform quality checks while ensuring shipment accuracy and streamlining the shipping process.

Warehouse Management

Efficiently deal with multiple warehouses while coordinating with inventories and optimizing the picking and shipping process. With warehouse management in logistics, you can gain high order fulfillment accuracy and access complete visibility over order status.

Transportation Management

Looking to improve your shipping efficiency? Investing in inventory logistics software aids in transportation management. From planning to coordinating, calculating and maintaining orders, it helps provide route optimizations and shipment consolidation.

Order Management

This is more than simplifying your ordering process. Inventory logistics in order management accomplishes order fulfillment over multiple sales channels, manages invoices and returns, tracks and handles order status’.

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Primary Benefits

Other than optimizing ongoing processes and real-time inventory monitoring, there are multiple advantages associated with inventory management in logistics.

Some of the primary benefits of logistics inventory management include:

Improve Inventory Planning

It is difficult to monitor and manage a business’ logistics inventory manually. It is hard to know the items’ precise status and shipping details. How do we fix this? Introducing automation can help track operations at every stage while providing real-time updates.

Structure Warehouses

When it comes to tracking and monitoring inventory, having a well-structured warehouse yields better operational productivity and efficiency. Tracking and monitoring inventories in multiple warehouses across different locations becomes more accessible.

Boost Efficiency and Productivity

Why waste more money, time and effort when you can incorporate a quality logistics and inventory management system? From conducting faster order fulfillments to gaining superior quality control and tracking operations at every stage of the workflow process boosts productivity.

Enhance Customer Satisfaction

What is the primary goal of your business? It’s to provide your customers with high-quality products and efficient services. Considering the advantages mentioned above, it is crucial to implement a robust logistics inventory management solution for your business.

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Conclusion

Investing in a logistics management solution is the right choice if you are in the logistics industry. It’s easy to adapt, and the agile formula helps improve flexibility and productivity, making it the perfect fit for your organization.

If you are considering investing in a logistics inventory management solution, check our inventory management requirements template for more details.

How do you manage inventory logistics in your company? Let us know in the comments below!