What is stock or inventory? Looking for an answer to this question? If ‘yes’ then this article is for you.
Stock or Inventory is nothing but excess or unused materials and goods which a business holds for selling purpose. Inventory is of different types and some of them include finished goods, raw materials, MRO supplies, work-in-progress and packing materials. Besides, the 2 main classifications of the inventories include Manufacturing and merchandise inventory. Let us discuss about them in detail today.
Manufacturing inventory is nothing but all the materials and goods which are required for manufacturing process. All the finished goods, raw material and work-in-progress come under this manufacturing inventory.
- Raw Material: Raw materials are the goods or materials purchased and the manufacturers take them through the manufacturing process to get their desired output i.e. finished goods.
- WIP: Work-in-progress inventory is nothing but the semi-finished goods. If this inventory is high then you may experience money blockage in your business. In order to avoid money blockage you should speed up your manufacturing process.
- Finished Goods: A finished good is the final product of the complete manufacturing process. In fact, you can sell them on the market. This manufacturing process is of 2 types and the first one is products will be manufactured and then they will be kept for sale on the market. The second one is manufacturers will take the order and then manufacture the products according to the specifications received.
- Packing Material: It is the material which is generally used for packing your goods.
- MRO Goods: MRO means maintenance, repair and operating supplies. MRO items generally include industrial equipment such as pumps, compressors, valves and etc, consumables like laboratory and cleaning supplies and furniture, computers and etc.
- Buffer Inventory: This buffer inventory is popularly called as safety stock. Besides, this is the excess stock which is kept to use when there is a requirement. Unplanned inventory shortage can take away your peace of mind. Hence, most of the businessmen generally maintain buffer inventory.
There are a lot of warehouses available across the world to store your stock or inventory. The most famous warehouse among them include Belley’s warehouse. They also offer the best quality cardboard boxes as well to their clients. Approach Belley warehouse for boxes and they will deliver the best quality cardboard boxes within no time to your door steps. You can also book their warehouse storage services if you don’t have enough space in your office to store your boxes.