For every organization whether it be Hotels or Restaurant, inventory management plays a major role in their daily operation. A lot of basic items or materials are required to run a hotel or restaurant smoothly. Excessive stock items will results in a loss for the organization while insufficient may further delay the ongoing operation so inventory management maintains that optimum level to keep it running smoothly day after day.
Inventory Management Software is one complete program for managing the effective use of materials or items within an organization. Identifying their current stock, future requirement and provide an efficient way to run daily operations successfully. Reorder points, tracking of each stock, product identification, departmental assessments, and inventory optimization are important aspects of inventory management software.
Organizations set their own level of stocks as per their storage efficiency and daily use. Automated software’s provide notification in the system whenever the required stocks of level are not maintained thus keeping a smooth run of the operational activities. Hotels and Restaurant require proficient inventory management to keep their day to day activities running at a maximum pace.
Types Of Inventory Management
Based on the organization needs there can be different types of Inventory. On broad classification, there are two main types of inventory management i.e, Perpetual Inventory and Periodic Inventory Systems.
Perpetual inventory is a method in which stocks are updated regularly. Latest technologies of Barcode tracking systems and radio frequency systems are part of perpetual inventory systems. Every item received, used, moved, picked and scrapped is updated on software keeping the whole process live during the count.
A periodic inventory system is a method in which inventory stocks are updated for a certain period thus allowing a regular check on inventory levels and their efficient use. Generally, a specific time is allotted to count every item physically. Last in First out(LIFO) and First in First out (FIFO) are two methods to manage inventories in this system.
Objectives Of Inventory Management
Transparency and efficiency are the two foremost main goals of inventory management software. Here are the main objectives of Inventory Management
- Maintain a sufficient level of stocks for keeping the business running without any delays
- Minimizing wastage’s and losses coming from misuse of any inventory items
- Maintain an effective storage supply of the items
- Manage Vendor profiles and stock purchase order
- Manage Items Balance and purchase order for future needs
- Issue items and receipt to multiple departments
- Tracking each item for its effective use in the system
- Provide optimization methods for items
Important Of Inventory Management
Hotels are a large establishment consisting of multiple departments. With thousands of small items used daily, inventories management provide an effective way to control theft and losses from the system. Even small restaurant uses hundreds of raw materials daily basis. A proper inventory management system tracks the use of these materials and provides effective measures avoiding any kind of theft or losses from the business.
Order management is another major benefit of using these sophisticated inventory management software. Overstocking and under-stocking are the two stages to be avoided for any item stock keeping in business. An optimum level of stocks must be maintained to handle the demand for the specific item in the organization. These stocks are maintained in storage where they are issued to different department based on their specific needs. With inventory management, one can track the effective distribution of these materials and keep track of their right usage in the system.
This software also provides control over vendor profile management. Deliveries from multiple vendors, cost of items, and time are taken for order fulfilment are some of the fundamentals where these software’s can create guidelines for running a large organization like Hotels, stable over a long run. Better inventory practices also result in organizing storage more effectively. This strategy results in profitability for the Hotels by avoiding any misuse of the item and providing optimization for inventories.
At MyHotelLine we understand inventory management is one of the most important parts of Hotel Operations. Our Material Management module offers comprehensive support with specific sections for inventory location, store configuration, vendor, inventory opening balance, Purchase order(PO) management, Item Receipt, Item Issue, and inventory adjustment. Our customer relations experts are also available to offer you advice on getting the maximum out of this software for your organization.