A way to categorize inventory by the amount of value each group contributes to the total value of inventory. ‘A’ items are the most expensive and less in quantity, while ‘C’ items are least expensive and more in quantity. Managers have better time management of resources when management follows ABC analysis and focuses on ‘A’ items.

How Zapro can help: Zapro’s stock categorization is automatic, so you can use the ABC method in your inventory management process right away.

Learn about Safety Stock Explained: The Fail-Proof Guide to Never Running Short

Safety stock can be seen as a buffer stock for unexpected events such as demand spikes or supply delays. The calculation of safety stock is formulation of a quantity that allows you to still perform in the “worst case scenario” situation. It works on the principle of stock out risk mitigation.

How Zapro can help: Zapro keeps an eye on your lead time, which is a major factor in safety stock inventory management calculations.

Learn about What Is EOQ? The Quick Formula Guide That Saves You Money

EOQ assists companies in ordering the right amount of goods as to minimize the overall costs of ordering and storing goods. It achieves a balance where incurring costs of the storage of goods and costs of issuing of purchase orders are minimized. Businesses operating with this formula can be lean and at the same time have sufficient supplies.

How Zapro can help: Zapro handles complicated inventory management calculations and helps you find the most economical quantity to order for every product.

Learn about Just-in-Time Inventory (JIT) Explained: The 2-Minute Plain-English Guide

JIT is the corporate philosophy that at the moment the production line or the sales floor needs something, it is ordered and delivered. In this way, any cost related to inventory kept in the warehouse is minimized and the likelihood of unsold goods is reduced. The downside is that the supply chain has to be very dependable, because if a delivery gets late, there is no warehouse stock to fall back on.

How Zapro can help: Zapro offers visibility across whole operations suitable for JIT without a risk of stockouts.

Learn about Top 7 Inventory Management Techniques: The Must-Know Cheat Sheet

Among the favorite methods are ABC analysis which ranks stock based on value, and Just-in-Time which reduces storage necessities by only receiving goods when required. Some companies use FIFO( First-In, First-Out) method to ensure older inventory is sold prior to the expiration or obsolescence. Choosing the most suitable one depends on products turnover and industry.

How Zapro can help: We have an inventory management software that can handle several types of inventory control methods so that you can use the one that suits your business model best.

Learn about Stock Replenishment Made Easy: Your Practical Quick-Start Guide

Stock replenishment refers to the ordering of stock to be able to have adequate inventory for potential customer demand. Practically, it means deciding on and setting reorder points. Reorder points are minimum stock levels that when recorded a new purchase order is automatically generated. More advanced systems use the analysis of previous sales transactions to make a forecast of the quantity needed and the timing of the order.

How Zapro can help: Zapro completely takes over the replenishment task by automatically notifying you the moment your inventory falls below the predetermined limit.

Learn about Inventory Tracking Explained: The Effortless 3-Minute Walkthrough

Inventory tracking means having the ability to follow the movement of products in the supply chain in real time. One way to do this is scanning barcodes or RFID tags at various stations like receiving shipment or selling a product. This way, your electronic records will continuously correspond to what is really present on your shelves.

How Zapro can help: Zapro is well equipped with inventory management features for stock monitoring that can be accessed remotely from various devices.

Learn about How to Set Up an Inventory System: The No-Stress Quick Setup Guide

You begin by thoroughly physically counting your stock and then by sorting items either by value or by how often they are used. After that, you select software to convert your paper records to digital form and also assign each item a unique identifier in the form of a SKU or a barcode. Lastly, you define the procedures for how new items entering the inventory are handled and how sold items are recorded.

How Zapro can help: Zapro facilitates the initial setup through a thin client web application that makes data upload painless.

Learn about Inventory Control vs Management: The Clear 60-Second Difference

Inventory control is a more tactical approach where the main focus is on what is physically present in the warehouse and how the items are organized there. In contrast, inventory management covers the whole inventory life cycle including forecasting, purchasing, and strategy development. While control concerns the “now,” management is about “what happens next.”

How Zapro can help: Zapro equips you with instruments to handle both stock control on a day-to-day basis and strategic inventory management in the long run.

Learn about Inventory Management Process: Step-by-Step Beginner’s Guide

It involves a series of actions starting with purchasing from suppliers, followed by the receipt of goods into a dedicated storage area or warehouse. Then, tracking of items during production or made ready for the customer is done. Lastly, permanent auditing and reordering takes place to keep the cycle going.

How Zapro can help: Zapro assists in optimizing your inventory management workflow at every phase from initial purchase order to selling.

Learn about How Inventory Management Directly Boosts Your Profits — Fast Guide