Category: logistic solutions

Inventory amount How to calculate it?

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There is great importance in calculating the inventory amount in any company, through which they determine whether they have a surplus or a deficit and thus get an idea of ​​what they will do in times of crisis.

The inventory amount varies according to the company’s activity, and in general, whenever the amount of inventory is excessive or less than normal, this poses a risk to the company’s position.

It can cost it more expenses and losses, and in this article we will talk about all the details about the inventory amount and its importance, and we will also show you how to calculate the amount of inventory at the end of the financial period.

Inventory amount definition

inventory amount

An inventory amount is the number of items a company has from the products it operates with that it can identify by doing the inventory in its own way.

The process of determining the amount of inventory helps to know whether the company suffers from a deficit or surplus in its inventory. And thus determines how it can deal in that case.

Understanding Average Inventory

The term average inventory is an important term related to inventory amount.

Average inventory is an estimate of how much of the same inventory a company has during a period.

Through it, it is possible to address cases of fluctuations in inventory balances, as well as avoiding the results of peak seasons.

Average inventory is also a clear indicator of how stable the inventory is in a company, so it is necessary and related to the amount of inventory.

Average inventory also helps companies understand how quickly they can convert their amount of inventory into actual sales.

get to know : Order Management System Solve Your Fulfillment Challenges

How to calculate Inventory amount

inventory amount

There is more than one way to calculate the inventory amount and its value. And in general, calculating the amount of inventory and its value is one of the most important things that benefit the business.

This is because calculating the amount of inventory and its value plays an important role in making decisions in companies. And any errors in its calculation will negatively affect the accounting reports in the new period.

Here are the most important methods for calculating the amount of inventory and knowing its value:

1. FIFO method

It is one of the most popular methods used in calculating the inventory amount and its value.

Through which the calculation is made based on the fact that the inventory that was initially purchased is sold first.

This method is used to calculate the amount of inventory in cases of economic uncertainty.

2. LIFO method

The second most frequently used method of calculating inventory amount and its value is to assume that items purchased last are sold first.

3. Retail method

It is one of the methods used in calculating the inventory amount and its value by which the physical inventory is checked.

In order to use the Retail method in the calculation, you will need some basic metrics, namely:

  • Cost of goods available for sale= Beginning inventory + cost of goods.
  • Cost-to-retail ratio = Cost ÷ retail price * 100
  • Cost of sales = Sales * cost-to-retail ratio

Then you can easily calculate the amount of inventory through the Retail stores method, using the following formula:

  • Inventory amount by using Retail method = Cost of goods available for sale – cost of sales.

4. Ending inventory formula

It is one of the simplest and easiest methods used in calculating the amount of inventory, which is done by using the following formula:

  • Inventory amount by using ending inventory formula = Beginning inventory + new purchases – cost of goods sold (COGS)

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admin January 11, 2026 0 Comments

Building Sustainable Supply Chains and Technologies that Can Help it 

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Sustainable supply chains have become the focus of many companies, because they take into account the environmental and societal impact of the goods and services included in them. So that products through sustainable supply chains are free from environmental harm resulting from energy use and water consumption, which positively affects the safety of these products as well as the safety of people. In this article, we will show you all the details about sustainable supply chains and their importance, as well as the most important steps that help you build sustainable supply chains in your business.

What are sustainable supply chains?

Sustainable supply chains are the process of integrating ethical and environmental practices into a competitive model, which contributes to end-to-end supply chain transparency.

They encompass the entire journey of products, from raw material sourcing to production, storage and delivery.

So many companies seek to achieve this sustainability, in order to take advantage of the enormous benefits it provides to the environment and society at the same time.

What Is on Demand Warehousing?

The importance of sustainable supply chains

The reason sustainable supply chains are so important is the significant impact of supply chains on the environment, especially since supply chains in general involve energy-intensive production and transportation.

This means that they have a significant impact on the environment and society, but sustainable supply chains can make a significant difference to environmental impact.

So that the harmful environmental impact is minimized as much as possible, and therefore the importance of sustainable supply chains lies in the great benefit they provide to companies and society as a whole.

In addition to the significant role that sustainable supply chains play in saving costs and improving productivity, thanks to the use of sustainable technologies and resources.

5 steps to building a sustainable supply chain

Sustainable Supply Chains 2

If you want to start implementing sustainable supply chains in your business, and take advantage of the huge benefits that they offer. Here are some steps that will help you build sustainable supply chains effectively:

1. Detailed planning of your supply chain

The first step towards sustainable supply chains is to conduct detailed supply chain planning, which will help you to fully understand the current state of your business, with a focus on sustainability as you map the flow of your goods, from manufacturing to consumer.

So you can know how you are employing labor and resources sustainably, and you can use digital tools to help you track the stages of each product, identify resources and better assess risks.

2. Adopt sustainable practices with suppliers

In order to build sustainable supply chains you also need to encourage your suppliers to adopt more sustainable practices.

This is done by conducting periodic audits, as well as setting strict standards for compliance and performance measures, in addition to new processes that are in line with sustainability goals.

3. Define metrics and key performance indicators

Another important step to achieving sustainability in supply chains is the need to set goals and define metrics, by which business sustainability will be measured.

This helps in conducting benchmarking, which will contribute to identifying areas for improvement, and thus help companies achieve the best performance.

are you know what is Scheduled Delivery?

4. Exploiting technology in building sustainability

Technology helps identify weaknesses and opportunities to improve and build sustainable supply chain management, as well as helping companies collect information about their performance.

Thus, providing assistance to identify the most efficient and sustainable shipping methods, as well as identifying the challenges of sustainable supply chain management, and trying to enhance its efficiency better.

5. Collaboration between companies on sustainability issues

An important step in building and developing sustainable supply chains is collaboration between different companies in the same industry to promote environmentally friendly sustainability standards and processes.

Thus multiplying the positive impact of sustainable operations, which contributes to reducing the harmful environmental impact as well as helping to significantly reduce operating costs.

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admin January 11, 2026 0 Comments

What Is An On Demand Delivery And How It Benefits

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On demand delivery is one of the forms of delivery that has been used in the recent period, which contributes to greatly enhancing customer satisfaction. Especially in light of the age of speed in which we live, and the need for customers to receive their orders as quickly as possible. On demand delivery has become one of the methods used by some shipping companies to effectively meet customer demands, especially since through this method of delivery, products will reach customers at the time and place they specify. All this contributes to enhancing customer satisfaction with the services provided, and in this article we will show you all the details about on demand delivery, as well as its benefits and advantages.

What is on demand delivery?

demand delivery

On-demand delivery is the process of delivering goods and services to customers when and where they want them, usually used to deliver perishable goods such as food and groceries.

Through this method, the customer chooses the place and time in which he will receive his order, and this method also allows them to track their shipments and plan their schedules.

This service helps in delivering products to customers quickly, which enhances their satisfaction with the service provided and better fulfills their desires.

What is on demand delivery tracking?

tracking is an option that allows customers to track the delivery of their orders when using the on-demand delivery option.

This allows customers to track their shipment in real-time, from its departure from its warehouse until it reaches its final destination and receives it.

And now many customers prefer to use the option to track their orders, which makes them more reassured and aware of what the shipment goes through until it reaches them.

How fast is on demand delivery?

The on demand delivery method is considered one of the fastest shipping methods available, which many customers rely on to order their shipments.

Through this shipping method, the shipment can reach the customer within a few hours of requesting his shipment.

This is the reason why many customers tend to use this shipping method, so shipping companies are keen to provide an option on demand delivery within the delivery options.

Benefits of on demand delivery

There are a lot of benefits that can be achieved in exchange for using the on demand delivery method.

And this is perhaps among the most important reasons why shipping companies provide it to them.

The following are the most important benefits resulting from the use of the on demand delivery method:

1. Quickly respond to customer requests

This method ensures that customers’ ordered products will arrive within a few hours of completing their purchase order.

Therefore, companies need to provide the necessary resources and the required technology in order to be able to provide this option in delivering orders to customers to meet their desires.

2. Possibility of expansion to more markets

Among the advantages of this method of delivery is that companies have the opportunity to reach more markets and increase the number of customers they deal with.

This is because most customers want to get their products in the shortest possible time, so they prefer to deal with companies that provide the option of on demand delivery.

3. Enhance customer satisfaction and loyalty

demand delivery

Among the advantages of on demand delivery is its great role in visiting customer satisfaction and loyalty with the services provided.

The reason for this is that this shipping option provides more flexibility to consumers and customers, as it allows them to choose the time and place to receive their package.

How does the on demand delivery work?

In order for shipping companies to provide options on demand delivery, they resort to using technological solutions to meet demand.

Whereas, in this type of order delivery, the customer expects to receive his order within a few hours or even minutes from the moment of purchase.

So when the customer requests this option to deliver his order, the company chooses the warehouse closest to the customer.

And ships the product to him using an appropriate express shipping method through the nearest fulfillment center or warehouse to him

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admin February 20, 2023 0 Comments