The products that your business manages with the goal of selling them are considered inventory. A bulk product could be broken down into its component parts and sold individually, or it could be raw materials that you purchase and transform into something altogether new. Even something wholly immaterial is possible.

Types of inventory

Depending on the products you offer, you may deal with one of the many distinct sorts of inventory. Here is a list of some of the categories you may probably encounter:

Raw materials:the supplies you employ to produce your end goods

Work-in-progress:In essence, unfinished items are inventory that is still in the production stage.

MRO goods:Maintenance, repair, and operation is referred to as MRO. This is the stock that you use to aid in production.

Safety stock:The extra stock you keep on hand in case of supplier shortages or demand spikes

Every business that manages inventory will require a system for managing stock. Let’s look at how that functions in theory.

Which industries require inventory management?

Any company that deals with stock will require inventory control in one way or another. How crucial your products are to the success of your company will determine how much of it you’ll need. Any of these companies will find it essential beyond all doubt:

1. Distributors and wholesalers
2. Food/beverage producers, including brewers
3. Manufacturers
4. Retailers