The matrix in inventory management helps you to manage your business inventory and minimize the multiple costs which are associated with inventory.
In this article, we will discuss in detail what you need to know about matrix in inventory management.
Inventory management
The process that involves ordering, storing, using, and selling business inventory is known as inventory management. The purpose of inventory management is to fulfill customers' requirements and to reduce the cost associated with inventory.
What is Matrix in Inventory Management
Matrix in Inventory Management is a type of inventory system in which you can manage your multiple products with configuration and attributes. Such as product material, size, packaging, color, etc. Here 2 Dimensional or 3-dimensional matrix is used to show possible configurations.
Inventory Matrix example
For instance: if you have a t-shirt business and there are multiple styles, sizes, and colors of t-shirts in your inventory. So in this case, the inventory matrix helps you to keep a record or to track your inventory.
How does matrix inventory differ from regular inventory management
Matrix inventory is used to track various types of products stored in inventory. Whereas regular inventory management is used for forecasting, ordering, and handling the product on hand.
Can matrix inventory be integrated with other software, such as QuickBooks
Yes, matrix inventory can be integrated with other software, such as QuickBooks. For this, you may require inventory management software. For instance: Acctivate is an inventory management software that provides you with a feature where you can integrate with QuickBooks to manage your inventory, purchasing, warehousing, etc.
What is the application of matrices in inventory management?
Matrices in inventory management are used to create and manage matrix inventory, which involves multiple configurations and attributes of products such as color, style, size, and materials of the product. By attributes, matrix inventory software makes it easy to create and track matrix inventory. Additionally, it helps managers to manage inventory by setting variations and to track product sales with the help of reports.
What are the benefits of using matrix inventory management
There are several benefits of using matrix inventory management for small and large businesses such as:
1. Cost Reduction
matrix inventory management helps to reduce business costs and prevent financial losses by preventing overstocking. Because businesses that are at rent have to pay for the place which they use to keep their products, and other costs that occur due to overstocking are:
Labor cost: Here, you have to pay your employees to manage your excess inventory.
Transport cost: excess overstocking improve transportation cost to place a product from one to another in a warehouse.
2. Inventory Accuracy
Businesses need to know which product is selling well and which is not to manage inventory cost. This can be done by matrix inventory management because it helps to track the entry and exit of a product, its storage, and sales.
3. Automation
Automation can be obtained by using the software and with the help of inventory management software you can automate the process of managing inventory and reduce errors, Labor cost, etc.
4. Return on investment
Because of inventory software, you will know which product has to be produced in more quantity and which doesn't, and with the help of this data you can increase your Return on investment ( ROI ).
5. Human Errors
Accuracy is not only essential for inventory it is essential for every aspect of a business. In the case of inventory, when you use inventory software then there are very few or no chances of errors as compared to humans.
Related Searches:
What are some common attributes used in matrix inventory management
matrix inventory management consists of multiple attributes and configurations but some of the common attributes are weight, color, size, shape, material, packaging, and the features of a product.
what industries benefit most from matrix inventory software
footwear, apparel, t-shirt, pants, jewelry, and other retailers and distributors' industries get the most benefit from matrix inventory software. Because this software makes helps them to manage labor expenses, increase product accuracy and visibility, etc.
What are the 4 types of the inventory management system
The 4 types of inventory management systems consist of the economic order quantity (EOQ) which is used to reduce the total holding and ordering costs of a product, just-in-time management (JIT) is used to meet current inventory requirements according to customers' needs, days sales of inventory (DSI) is the average number of days a company used to sell its inventory, materials requirement planning (MRP) is used to calculate the raw material which is needed to create a product.
You may like:
