Inventory management in the markets
Dear readers, as I have mentioned previously, I have been doing some research on the processes that are considered of utmost importance to maintain the prosperity of a company, in this particular case a food sales business known as markets; in this publication I will describe from my perspective the importance of managing inventories in the markets.
In that sense, it could be said that inventories is the relationship of the set of goods that a company has in order to offer its customers different types of products. It is important to mention that inventories must be managed manually or digitally, specifying all the merchandise that the business unit has, so that each of these processes can be carried out in detail so that it can be marketed.
In the same vein, authors such as Catacora (1998), state that inventories
"represent the asset items that generate income for various types of companies, among which are those that have a transformation activity and those that are dedicated to the purchase and sale or marketing".
In the case of the market or supplies, inventories should be kept in an organized manner, which would be the goods that enter and leave daily. This is why the business unit must be aware of how its inventories are being managed, since this is the main source of income for the company.
It is also essential to clarify that if the company from the beginning does not keep track of its inventory and does not evaluate what goods are leaving the business unit at a future time may have problems because it is not related to what kind of products are leaving the company, in some particular cases businesses have come to ruin, since they do not have related neither the goods that are leaving nor the profits to be obtained from it.
On the other hand, at the moment when a person decides to undertake this type of business, whether in a market or supply, it is essential to manage the accounting books once the company is formed, these books are: purchase book, sales book and inventory book, each of them has a different function and in them all the information of the business unit will be managed, which will help to be clear about the income produced by the company.
Finally to end this post we can say that inventories are the main tool to start a business, in case you do not know how to keep the record properly, seek advice from a public accountant who can explain each of these processes and thus the representative of the business unit will know what their income and expenses and if the company makes a profit or loss.
Catacora, F. (1998). Accounting. Caracas: McGraw-Hill.
I think that for most family businesses inventories are not of great importance, it is very common in Latin America to see small businesses stop providing their services because of poor inventory management, I don't know if it is a bad culture or something else but nowadays, many businesses struggle to stay afloat without knowing that the origin of their problems is poor inventory management.
Hello friend, you are absolutely right in what you mention, I have observed some businesses where I live, where they do not pay more attention to inventories, which prevents them to quickly identify the problem that the company presents.
See you later, have a great start of the week !
Hi @amestyj
This inventory thing is a big job, I don't want to imagine all that is involved to keep order in a company and to be able to have a better control. But it is something that has to be done, there is no other choice.
Hi my friend @josevas217, taking an inventory requires a lot of dedication, and as you mention it is necessary to do it in order to identify in time and efficiently where the company's possible financial problems are coming from.
See you later, have a great start of the week.
Every company needs to have its own inventory management, which goes beyond how to have inventory, it has a whole logistics that is:
Create an inventory;
Prepare the team;
Establish a limit on losses;
To seek a certain balance for the stock;
FREE of stopped products without much delay;
Calculate inventory costs;
And mainly invest in the care of product delivery;
Everything that involves inventory management is of utmost importance.
Greetings friend, thank you for complementing the article with your participation, what you mention is important when wanting to implement such an important process.
See you soon !
Inventory management is always import in business if we produce more amount but cannot sell that product it's a loss for the company and resources.
Hello friend, inventories are always important, it allows us to make important decisions with the products we sell, since, what you mention can happen !
See you later !