{"id":5624,"date":"2024-07-31T15:13:53","date_gmt":"2024-07-31T09:43:53","guid":{"rendered":"https:\/\/www.forsysinc.com\/blog\/?p=5624"},"modified":"2024-11-08T15:35:17","modified_gmt":"2024-11-08T10:05:17","slug":"oracle-inventory-management-a-smart-inventory-solution-for-modern-businesses","status":"publish","type":"post","link":"https:\/\/www.forsysinc.com\/blog\/oracle-inventory-management-a-smart-inventory-solution-for-modern-businesses\/","title":{"rendered":"Oracle Inventory Management \u2013 a Smart Inventory Solution for Modern Businesses"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

We all love a seamless shopping experience. Go to a store, buy what we need, pay, and walk out. But ever wondered, behind this seamless shopping experience is a world of complex yet fine-tuned inventory systems that ensure all the products are in stock and on time!<\/span><\/p>

In the world of instant gratification, it is essential for companies to be on their toes and keep their products available all the time. Else, competition will eat the space and profits. Oracle fusion cloud inventory management is an AI-powered SCM module that supports companies in managing the flow of goods such that they are neither overstocked nor out-of-stock.<\/span><\/p>

Considered the keystone of a successful business, inventory management ensures a balance of meeting customer demand and minimizing costs. In this blog, we will discover the benefits of implementing oracle inventory management, its role and importance, and how it can transform businesses.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

What Is Inventory Management?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Inventory management, in simple words, is an effective management and control of ordering and storing raw materials, tracking items in production, and finally getting the finished goods into the hands of customers. Yet, inventory management is more than just counting boxes and keeping them stocked. It is a vital component of business operations that ensures production flows smoothly, keeps customers happy, and maintains well-stocked shelves \u2013 without tying too much capital or running out of stock. It ensures the right products are available at the right time and optimizes the supply chain to meet customer demand efficiently.<\/span><\/p>

Per this<\/span> research<\/span><\/a>, 71% of the companies use inventory and warehouse management to track the inventory accuracy rate, 67% follow inventory turnover rate, while 54% monitor on-time and in-full inbound receipts.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Types of Inventory Management\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Inventory management can be largely classified into three categories:<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

1. Raw Materials\/Components:<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
In this type of inventory management, companies purchase and store items until needed for production. This type ensures the right amount of raw material is available to maintain a smooth production process.<\/span><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
Example: A car manufacturer buys and stocks different parts like aluminum, steel, tires, frames, and other parts so that they are quickly available at the time of production.<\/strong><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

2. Work in Progress (WIP)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
In this category, inventory management tracks and manages the material\/items that are currently in various stages of production but are not yet completed and ready for sale. An effective WIP inventory management ensures the engine is ready to be moved to the next stage of production i.e., transitioned to the assembly line for installation, thereby, preventing production delays.<\/span><\/b><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
Example: A car manufacturer assembles an engine in the vehicle, but it is not yet installed.<\/strong><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

3. Finished Goods<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
This type of inventory oversees the storage and distribution of completed products that are ready for sales.<\/span><\/b><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t
Example: In a car manufacturing process, fully assembled cars are stored such that they can be easily tracked and promptly transported to the dealers.<\/strong><\/h6>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Why Is Inventory Management Important?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\tEffective inventory management is vital for several reasons. Listing here a few:<\/span>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"best-price\"\n <\/div>\n \n
\n
\n
\n Maintaining an optimal stock level minimizes carrying costs and reduces expenses<\/strong> related to storage, labor, and transportation. Businesses can also avoid high costs associated with overstocking, which includes warehouse expenses. Also, optimizing inventory does not hold capital, which can be used for essential business needs.\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"money-flow\"\n <\/div>\n \n
\n
\n
\n Effective inventory management ensures healthy cash flow<\/strong>. When inventory moves quickly from purchase to sales, businesses can reinvest the cash inflow into building and maintaining high inventory levels and other operations. This enhances financial stability and prevents a funds crunch \u2013 a key problem of slow-moving stocks.\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"satisfaction\"\n <\/div>\n \n
\n
\n
\n Companies can achieve higher levels of customer satisfaction and loyalty<\/strong> by quickly fulfilling the orders and ensuring the stocks are available whenever needed. Also, maintaining stocks at optimal levels reduces the risk of losing sales to competitors. <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"product-development\"\n <\/div>\n \n
\n
\n
\n Maintaining the right levels of raw materials or components in stock ensures smooth and continuous production<\/strong> and avoids disruptions. This kind of production efficiency minimizes downtime, maximizes productivity, and leads to overall improved operational performance. \n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"risk\"\n <\/div>\n \n
\n
\n
\n Smart inventory management helps companies mitigate risks<\/strong> in case of natural disasters, supply chain disruptions, sudden spike in demand, or supplier issues. By having contingency plans and a safety\/buffer stock in place, businesses can continue to operate without significant interruptions. This kind of readiness reduces the risk of stockouts and production halts. <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"stock\"\n <\/div>\n \n
\n
\n
\n Managing perishable and non-perishable stock minimizes waste and obsolescence<\/strong>. Businesses that deal with perishable items such as food manufacturers, optimal inventory ensures the products are used before expiring. Whereas, for non-perishable items, it helps prevent overproduction and reduces the risk of obsolescence. Overall, optimal stock levels ensure reduced waste, more cost savings, and a step towards sustainability and environmental footprint. <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"tax\"\n <\/div>\n \n
\n
\n
\n Accurate inventory management enables companies to improve their financial reporting ability by providing the right values in the financial statements<\/strong>. This accuracy improves cash flow analysis and ensures the true value of the company\u2019s assets is reflected in the balance sheet.\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n
\n\n \n
\n\n \"positive-vote\"\n <\/div>\n \n
\n
\n
\n A continuous inventory movement and inflow of cash ensures companies have a competitive advantage<\/strong> over peers in the market. By minimizing costs and eliminating waste, companies can deliver quality products at better prices and win customer loyalty.\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Statistics Speak<\/h3><\/div><\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t