What Type of Inventories Should be Kept in a Warehouse
February 07, 2022
Finding a perfect rental warehouse is essential to ensure the operation of your business. But, before you throw everything inside, you should know what type of inventories should be kept in a warehouse.
Knowing this is significant. It will help you decide the warehouse specifications, how you’ll manage, and what tools you need? Therefore, the investment you made when establishing a warehouse will be effective.
So, here are 5+1 types of inventory you should store in a warehouse.
Raw Materials
Raw materials are essential and primordial materials you use to manufacture products. People also call it feedstock, primary commodity, or unprocessed materials.
Housing a supply of raw materials will allow the company to secure its need when there is an unpredicted high demand. It also helps when numerous orders come with a tight delivery schedule.
Aside from that, the company could also save some money by buying the materials in large quantities at once.
Work in Progress Materials
Work in progress materials means you have been working with them, but they’re still not finished at the moment. It happens when your products need a gradual process to make. This condition is inevitable.
People also call them semifinished goods. These goods are not liquid, so you need to keep their number as low as possible.
Even though, you’ll still have to arrange some places for them. Therefore, your inventory management needs to separate these items into different accounts.
Finished Goods
Finished goods are the final products that are ready to enter the market. The company must store them before sending them to the following line of a distribution chain.
Some companies create products based on customer orders, while others produce continually to keep the stock available. Whichever scheme your company uses, that’s fine as long as your cash flow runs smoothly.
But, if your company used the 2nd scheme, then it is inevitable to have the storage goods in a warehouse.
Packing Materials
These are the materials you use to wrap the products. There are two types of packing materials: primary and secondary packing.
The first one is an absolute necessity because the goods won’t become usable without it—for example, inventory like sachet pouches for coffee. The second one has the purpose for convenient transportation, such as board boxes and so on.
However, both of the packing materials need to be available in the warehouse at any time, so the company’s operation can run smoothly.
MRO Inventory
MRO inventory stands for maintenance, repair, and operating supplies. They consist of the goods the company uses to support its operation.
The company requires maintenance and repair goods for machines, to keep running without trouble. On the other hand, operating supplies like the computer, safety tools, etc., support the company’s operation.
All the inventories mentioned before are part of manufacturing inventories. Aside from that, there is also merchandise inventory.
Merchandise Inventory
Basically, it’s ready to sell products and available in seller’s stock, including retail and wholesaler.
Merchandise inventory is, typically, no longer under manufacturer management. That’s why it falls under a different category with finished goods.
Besides, it could also be a semifinished product if it’s part of an assembling industry. Therefore, it may be in a different category in inventory accounting.
Whatever inventories you keep, you certainly require a warehouse to store them. If you need a rental warehouse that will suffice your requirements, try to find one from our listing. We provide the best industrial warehouse with various facilities to support your business.