Inventory management is crucial to any business as it ensures the proper inventory is available when needed while minimising excess inventory and associated costs. Companies can choose from different inventory management systems depending on their needs, size, and budget. Here are four main types of warehouse inventory management systems in Singapore:
Perpetual Inventory Systems
This system provides real-time tracking of inventory levels using technology such as barcodes or radio-frequency identification (RFID), allowing for accurate inventory management and reducing the need for safety stock.
Periodic Review Systems
Singapore’s warehouse inventory management system involves setting a specific period for inventory review and ordering. Inventory levels are checked at fixed intervals, and orders are placed to replenish inventory as needed. It is a simple, cost-effective system but requires a higher safety stock to ensure enough inventory between review periods.
ABC Analysis
This system categorises inventory items based on their value and importance. A-items are high-value items that require close monitoring, while C-items are low-value items that can be ordered in larger quantities. This system ensures that resources are allocated efficiently to manage inventory.
Just-in-Time (JIT) Systems
Singapore’s warehouse inventory management system aims to minimise inventory levels by ordering only what is needed when required. JIT requires close coordination with suppliers to ensure timely delivery and can be risky if there are supply chain disruptions.
Visit ERP Software Singapore – A2000 Solutions Pte Ltd for comprehensive ERP software solutions tailored to meet the unique needs of businesses.
