Inventories are necessary for any business to have a grip on their financial situation, to cut down on losses and to get rid of obsolete items. An inventory is an asset, therefore, it’s important to manage it like you manage other business assets. There are different types of inventories that can be conducted: raw materials, work-in-process and finished goods The first one deals with the manufacturing process: raw materials that are used to create a finished product. The second one includes materials that are waiting to be transformed into a finished product while the last ones are the final products you get after converting the raw material.
Running a warehouse inventory is not easy. Performing an inventory using paper checklists could be a wa