FIFO and LIFO Inventory Management are one of the methods also used in inventory valuation, as there are many of these methods, the most important of which are FIFO and LIFO, and through them, you can evaluate your inventory by evaluating the cost of goods sold and ultimately determining your profitability, and the inventory valuation process depends on the costs incurred to obtain on inventory and preparing it for sale, and in this article, we will show you all the details about FIFO and LIFO Inventory Management.

What is a FIFO and LIFO Inventory Management?

One of the most popular terms used is FIFO and LIFO Inventory Management. FIFO is an abbreviation of First In First Out and LIFO is an abbreviation of Last In First Out.

It is necessary for the company to keep the quantity of inventory bought and sold in order to monitor and determine the cost of inventory for the period.

Its cost can be calculated through inventory, and inventory or stock valuation takes more than one method, the most important of which is FIFO and LIFO Inventory Management.

Therefore, FIFO and LIFO are one of the most popular terms used. FIFO is an abbreviation for First In First Out, and LIFO is an abbreviation for Last In First Out.

It is also important to note that choosing the appropriate method of them depends on the financial position of the company, especially since these accounts will mainly affect the income statement and inventory in the balance sheet.

FIFO: First in, first out and how does it work?

This method is based on the premise that the first inventory that is purchased is the first that is sold,

And the remaining assets in inventory are matched to the assets that were recently purchased or produced.

It is one of the most common inventory valuation methods companies use because it is simple and easy to understand.

During inflation, the FIFO method results in a higher value for final inventory, a lower cost of goods sold, and a higher gross profit.

Unfortunately, the FIFO model fails to provide an accurate depiction of costs when there is a rapid rise in prices, and this method does not offer any tax advantages.

LIFO: Last in, first out and how does it work?

Under this method, the newest stock is supposed to be sold first while the oldest stock remains in stock,

And companies rarely use this method because the old stock is rarely sold and gradually loses its value, and this results in a big loss for the business.

The only reason to use LIFO is when companies expect the cost of inventory to increase over time and inflate prices.

By moving high-cost inventory to the cost of goods sold, the companies’ reported profit levels can be lowered, and this allows companies to pay lower taxes.

FIFO and LIFO similarities and differences

As for the similarities between FIFO and LIFO Inventory Management, they are both used in inventory valuation, and each of them is used according to the company’s financial position.

The main differences between FIFO and LIFO Inventory Management are their effect on the company’s income statements and balance sheet.

In times of inflation:

• If the LIFO method is used, the cost of inventory sold will be higher than the remaining inventory, which will result in a higher cost of goods sold and a lower value of inventory on the balance sheet.
• If the FIFO method is used, the cost of inventory sold is less than the inventory held, which leads to a lower cost of goods sold and an increase in the value of inventory on the company’s balance sheet.

Another difference between FIFO and LIFO Inventory Management is how they affect tax, that:

• LIFO method will result in higher cost of goods sold and will result in lower taxes because profits are lower when the cost of goods is high.
• FIFO method will result in higher tax because the cost of goods sold is lower and therefore profits will be higher.

Which Method Is Better FIFO or LIFO?

We cannot determine the best method, FIFO or LIFO, but in general, you should choose the method that best suits your company’s financial position.

Therefore, the FEFO method is often applied by food retailers and pharmacies, and products containing semi-expired products are usually placed on the front shelves or in easily accessible places.

The LIFO method is used by companies when they expect the cost of inventory to increase over time and lead to price inflation.

By moving high-cost inventories to the cost of goods sold, companies’ reported profit levels can be lowered, and this allows companies to pay lower taxes.

One of the most important things for retailers is assortment planning, as one of the biggest challenges most retailers face is figuring out what products shoppers are going to buy, and the other biggest challenge is estimating the correct amount of inventory they will need.

These things may push them to sacrifice a large profit margin due to the occurrence of capital restriction in their surplus perpetual inventory, so they always need a plan to meet these challenges, and this is the assortment planning that helps them avoid losing sales opportunities, and in this article we will present You have all the details about the assistance planning.

What is Assortment Planning? 

Assortment planning is the strategy by which a group of products required in a particular region is selected during a period.

Assortment planning can be of great use during seasonal fluctuations, by which the right products during the season can be selected correctly and accurately.

During the selection of the products through the assortment planning, the focus is on the characteristics of the products themselves, in order to meet the needs of customers to the fullest extent.

And the following are the most important features of the products:

• Size.
• Brand.
• Color.
• Price.

Why is assortment planning important?

Assortment planning plays a big role in choosing the right inventory size, which greatly helps the retailers, thus avoiding any possible losses.

This type of layout also helps in optimizing product management selection as well as appropriately allocating shelving space, all of which effectively contribute to enhancing customer satisfaction.

Thus increasing the financial performance of the company by offering diversified products suitable to the needs and requirements of clients, so assortment planning is the best approach to improving and fulfilling clients’ needs.

Also, with retail channels unclear, this type of planning is more needed than ever. As it responds well to local preferences, enabling retailers to deliver the right products to shoppers at the right time.

Key factors to consider when developing an assortment plan

While developing an assortment planning strategy, there are a number of things to consider, so that retailers can reach the desired results, the most important of which are:

• Category Weight
• Brand identity
• Market trends
• Price range.

All of these factors together will provide useful information to retailers, especially since retailers cannot know the type and quantity of products that shoppers prefer on their own.

Therefore, these factors contribute to clarifying multiple data sources from different channels that enable them to accurately determine the type and quantity of products required.

How to build an assortment plan

If you want to have a proper assortment planning, there are a number of basic steps that you need to follow in order to make a plan that works for you, and here are those steps:

1. Research and analyze historical sales performance

The first step you need when designing an assessment planning is to analyze historical sales performance to update trends, in addition to researching and studying a number of elements, such as:

• Cost.
• Average selling price.
• Shelf life of the products.

With that information you will be able to start creating your own plan according to the information you have.

2. Store clustering

It is a process in which stores that are similar in characteristics are grouped together, in terms of location, sales volume, customer demographics and product features.

Through this step, you will be able to apply assessment planning to similar stores, and through this step, you will be able to meet the demand of customers in different regions.

3. Decide the breadth and depth of assortments

The third step you need is to determine the quantity of items that are sold in each group, in addition to determining the depth of the items in each category,

While achieving a kind of balance between quantity and depth in order to meet the requirements of the largest possible number of customers.

4. Create a visual merchandising plan

The penultimate step when designing assortment planning is to use visual merchandising, in which products are presented in the most attractive way.

Thus, motivating your customers to consume by highlighting the benefits of each product, and you can do this by relying on the information you have about each store you own.

5. Check back and then carry out the plan

The last step you need to be able to carry out your assessment planning is to check the previous steps closely to make sure everything is going correctly.

Also in that plan you will need to check that the plan is in line with your financial budget, and then you can apply the plan directly.

Assortment planning tools and software

Good assortment planning tools help provide comprehensive analytics that enable retailers to make informed decisions about the quantity and volume of products required, which will best meet customer needs.

Here are a number of key features that you should focus on when choosing the best assessment planning tools:

• Real-time analysis of competitors’ catalogs.
• Design comprehensive and dynamic pricing strategies.
• Having a simple yet effective interface that doesn’t need a lot of integration.
• The ability to analyze the product life cycle counts for making promotions and pricing those products.
• Providing specialized dashboards as well as charts for measurements and parameters, if any.

With the assistance planning tools combined with these features, you will be able to automate your planning process and thus generate new sales very quickly.

These tools will also contribute effectively and efficiently in determining the amount of inventory that your customers expect from you.

As well as making the appropriate adjustments in the event of any urgent changes to the market or from your competitors.

The packing list is one of the most important documents used in the shipping process. If you request a quotation for your shipment from the shipping agent or your logistic partner, they will ask you to provide them with your list, and this list has special benefits and importance that will help you in your work greatly, and in this The article will provide you with all the details about the packing list and its importance as well as the most important contents included in it.

What is a Packing List?

A packing list is a document that helps make international trade easy and smooth, as it provides complete information about your shipment to the exporter, forwarder or consignee.

This list also includes all the information about your shipment details, how it was packaged, dimension and weight details, destination details, etc.

Essentially, a packing list allows customers and others involved in the transaction to visualize the contents of your shipment; hence it is an important document.

Why Do I Need a Packing List?

The importance of these lists and the reason you need it is that it is the commercial document that details the contents of a package.

And through which transport agencies, government authorities and customers are informed of the contents of a package or shipment.

Through all those details the package is dealt with, the seller creates a packing list and sends it to where the goods are in order to get an accurate count of the goods sent.

Once the goods are noted and packed, the list is sent with them to their destination. Here are a number of points that illustrate the importance of this list:

• Identification of lost cargo especially for carrier and insurance claims.
• Allow selective inspection by customs authorities, and many governments require it for large shipments.
• Providing a map of the shipment so that the buyer can easily unload and store the shipped goods.
• Clarify the details required to obtain a certificate of origin.
• Represents evidence of the Material Safety Data Sheet if the goods are deemed hazardous.
• Represent a guide for the recipient or buyer.

The Packing List: A Vital Freight Document

The packing list is a vital shipping document, because it helps in the process of importing and exporting goods faster and easier, and it informs those responsible for the contents of the package or box, thus helping them to verify its contents.

Freight forwarders, customs officials, and others involved in the supply chain management use the details in the listing, through which items are checked for compliance with rules and regulations.

It is also through this list that customs officials at the port of destination will determine all import fees and taxes, in addition to being a source of vital information required to complete the bill of lading.

Things to look out for on a shipping packing list

There are a number of obscure things to look for in the packing list and check them well, the most important of which are:

• Packet sender.
• Shipping destination for the package.
• The number of items included in the package.

This is in addition to checking the rest of the packing list items, which we will show you in the following paragraphs in some detail.

What information is included on a Packing List template?

There are a number of basic information that you must include in your list templates, and these lists can cause you delays in the customs process.

Here are the most important items to include in your packing lists:

• Date.
• The origin and destination of the goods.
• Total number of Parcel Management in the shipment.
• Specific details for each package.
• Weight and volume of each package.
• Weight of the whole shipment.
• The commercial invoice number for the shipment.
• Shipper contact information.
• Send contact information.

Supply chain designations is the right way for those who are looking for a suitable opportunity to differentiate themselves and get a competitive business, and it is especially suitable for those who want to get a distinguished position in the supply chain.

Supply chain designations also help greatly in individuals who are starting their career in the field of logistics and they seek to continue it with a desire for excellence, and there are a set of basic certificates that these individuals need to obtain.

In this article we will talk about all the details of supply chain designations, as well as the basic certificates and what scmp designation is, as well as its costs.

What is Supply Chain Designation?

Supply chain designations are a professional designation that individuals who wish to be leaders in the supply chain apply to, after entering the supply chain profession.

And there are a number of core certifications that are required in the field of supply chain designations.

Supply chain management certifications

As we have indicated, there are a set of basic certifications that you will need to provide to elevate your skills in supply chain designations in relation to SCM.

Especially in light of the rapid development and growth facing the field of supply chain management, you always need to raise your skills and prepare to keep pace with changes on an ongoing basis.

Here are the most important supply chain management certifications you will need in order to gain a competitive advantage and complete your resume:

1. Certified Supply Chain Professional certification (CSCP)

It is one of the important certifications awarded by the American Production and Inventory Control Association (APICS).

Which signifies your complete knowledge of current core strategies, concepts and technology in supply chain management.

2. Certified in Production and Inventory Management (CPIM)

It is the second most important supply chain designations certification, awarded by ASCM, that demonstrates your experience in operations and a deep understanding of production planning, forecasting and master scheduling.

It also indicates your familiarity with materials management and how each of these components relate to the extended supply chain.

3. APICS Supply Chain Operations Reference (SCOR-P)

It is one of the important certifications in supply chain designations and digital supply chain management, which are awarded by the APICS, which helps people develop their skills.

Thus giving them a better understanding of performance metrics and business process practices.

It’s a comprehensive certification that indicates your expertise in managing, measuring and improving every aspect of supply chain performance.

4. Certified Professional Logistician (CPL)

It is one of the best certifications you will need which is provided by the International Logistics Association (SOLE) which is one of the most famous non-profit associations.

Which will give you experience in supply chain management in a number of different industries, including:

• Education.
• Government.
• Defense and commerce.

And you can apply and get it in one of those areas. It is one of the important certifications in the field of supply chain designations.

5. Certified Professional Contract Manager (CPCM)

It is one of the most important and useful supply chain management certifications, as it includes a lot of experience needed in the field of supply chain designations, which is provided to you by the National Contract Management Association (NCMA).

Possession of this certification helps you demonstrate that you have mastered the standards and skills needed to manage contracts, thus enhancing your position with the employer.

There are other important certifications, but we show you some of the most important certifications for those interested in supply chain designations and supply chain management.

SCMA designation

SCMA stands for Supply Chain Management Association, which is Canada’s largest consortium representing a group of supply chain professionals.

The Supply Chain Management professional designation is the most sought after career designation in Canada.

And there are many organizations that support individuals to be at the forefront of the supply chain throughout their career. Which will help you greatly in the field of supply chain designations

The supply chain management professional designation also requires a number of basic certifications that enable individuals to start and continue in the field.

SCMA designation cost

As for the SCMA designation cost, it varies depending on the type of applicant, i.e. whether or not he is a member of Supply Chain Canada.

Overall, the SCMA designation cost for Supply Chain Canada members is $500. For non-members of Supply Chain Canada, Supply Chain Canada costs $750.

And it includes one year membership only. You can also easily apply for SCMA designation and pay for it electronically online.

We would like to point out to you at the end of our article on supply chain designations, that in spite of these costs the field of supply chain designations is highly profitable and beneficial.

There is great importance to international trade finance, as it helps in facilitating the access of exporters and importers to manufacture and ship products internationally. Therefore, international trade finance is one of the cornerstones that help in the success of international trade in general. In this article, we will explain to you what is meant by international trade finance and its types, as well as how this type of financing helps exporters and importers to enable them to trade all over the world easily.

What is international trade finance?

International trade finance means those financial products and instruments that are granted to companies for the purposes of facilitating international trade.

International trade finance helps the various importers and exporters in facilitating international trade for them.

It is an integrated term that covers the various financial products and instruments used in the financing process.

Why is trade finance required for global trade?

As we mentioned in the introduction, international trade finance is of great importance because it is in great demand in world trade.

Through it, appropriate financing can be made available to exporters and importers to conduct global trade.

Especially since according to the estimates of the World Trade Organization, about 90% of world trade depends on some form of international trade finance, especially for the short-term period.

The international trade finance gap is about 3.4 million US dollars, which covers various forms of financing needed in trade.

Also, in 2018, according to estimates by the International Chamber of Commerce and the Asian Development Bank, that gap was about 1.6 trillion US dollars.

How Import Export Finance can benefit Your Business

Another name for international trade finance is import and export finance, which can greatly benefit your business.

Especially since cash flow and working capital management is one of the most important things for exporters and importers as well as trading companies alike.

This helps them when they produce large quantities of goods, providing dealers with upfront financing that helps them complete deposit payments.

International Trade Finance options provide financing with a term of up to 120 days, and this type of financing effectively helps in the speed of confirmation of new deals.

And it reduces the time between manufacturing and loading of goods.

Types of Import Export Finance used in Global Trade

There are different types of international trade finance or import and export finance, and the type is agreed upon between the exporter and the importer.

Through the use of different banks or financial institutions, the risks of bills or contracts between sellers and buyers can be eliminated through the so-called payment guarantees.

The following is a list that includes the most important types of international trade finance or import and export finance:

• Overdraft facilities.
• Invoice discounting.
• Mid and long term loans.
• Bank guarantees.
• Letters of Credit.
• Export invoice finance.
• Factoring.

Banks and other financial institutions can provide customized solutions, in order to mitigate the risks of negative currency movements.

How to apply for trade finance

As for the method of applying for global trade finance, there are a large number of international trade finance companies that can help you, such as:

• Corporate & Commercial Banks.
• Alternative Finance Providers & Non-Bank Lenders.
• Development Finance Institutions (DFIs)
• Export Credit Agencies (ECAs).

There are a set of basic requirements that you will need to meet in order to be able to apply for global trade finance from one of the above.

Those requirements are divided between requirements for your company and other requirements related to the import and export process.

The following points illustrate the most important requirements that the company needs to apply for global trade finance:

• Legal Company Name.
• Certificate of Business.
• Registration Information on any related companies Business.
• Registration Number.
• Registered office address.
• Details of Director.
• Contact Details.

The following are the most important requirements for import and export operations that you need in order to be able to apply for global trade finance from one of the previous institutions:

• Financial details.
• Budgets and forecasts.
• Overview of the industries that you operate in.
• Competitor landscape Types of products that you sell.
• Types of International clients and countries that you do business with.
• Details of your trading history with International partners.
• Current Invoices or Purchase Orders.

The use of container loading software has recently gained a lot of importance, especially now that we are in the era of massive technological developments. This has made digital transformation a necessity across the logistics industry. The wide variety of goods and the destinations they are transported to and from make the supply chain management process somewhat complicated, and this is where the importance of using container loading software that will organize the entire process. In this article, we will show you all the details you need to know about container loading software.

What is container loading software?

Before we talk about the importance and role of container loading software, we first need to know what it is.

Container loading software is a package that specializes in consolidating cargo management to use the power of trucks and other means of transportation in the most efficient way.

The container loading software aims to reduce multimodal transport costs by reducing the number of vehicles on the road.

This prevents goods from being damaged and also saves a lot of time for loading and unloading those goods. And all of this will eventually pay off and enhance customer satisfaction.

Why use container loading software?

There are many advantages to using container loading software, the most important of which is helping to customize the setup for loads of different dimensions more time-saving than other traditional methods.

This greatly reduces transportation costs, and here are the main benefits of container loading software that make you use these programs in your business to reap more benefits:

• Indicate the position of loads of different sizes within the cargo space.
• Assist in checking important information such as container dimensions (internal and external).
• Assist in checking the carrier and determining if there are any anomalies in the transportation.
• Minimize potential risks when loading actual containers.
• Possibility to manually locate loads, rotate shipments or eject them from the load space.
• Possibility to determine the optimal position of the different containers.
• Provide information needed to settle containers.
• Handling of containers in a manner that maximizes container loading capacity.
• Simulate what a loaded container will look like before the goods arrive.
• Clarify the free space in the container and how the goods are placed in it in a way that ensures its protection.
• Minimize human error.
• Giving greater flexibility when changing the idea of ​​placement of goods.

Load Planning Software for LCL, Consolidated, and FCL Shipments

Load Planning Software helps optimize the shipping process and reduce expenses while simplifying operations further.

It also contributes effectively to increasing the efficiency of the supply chain, and Load Planning Software solves many problems, the most important of which is the problem of empty space and how to use it in the best possible way.

Load Planning Software is meant to arrange the shipping process for the purpose of utilizing the full capacity of the used means of transport.

Container loading software or Load Planning Software can be used to organize shipments through LCL Shipping, Consolidated, and FCL.

FCL/FTL shipment

For FCL/FTL shipment, full container loads (FCL) or full truckloads (FTL) are somewhat cheaper than partial loads, and also easier to handle.

The reason for this is that partial loads involve fewer intermediaries. But in general, if the distribution of the loads in them is not regulated, the containers will inevitably collapse.

LCL/LTL shipments

When combined with Less-than-truckload (LTL) and less-than-containerload (LCL) shipments this significantly reduces transportation costs.

So different carriers arrange the load appropriately keeping in mind the restrictions so that the whole container does not collapse.

Different types of trailers/containers

Container loading software or loading planning software needs to be able to effectively solve all the tasks of how to pack items into different boxes including trailer/container.

Container loading software or loading planning software should have options for side, top, and front loading.

Here are the main different types of trailers/containers:

• Open top containers,
• General purpose (dry) containers,
• Return containers.
• Flat rack containers,
• High cube containers,

Every company needs to pay great attention to the provision of effective inventory management, in order to ensure that stock quantities are maintained properly and the quality of the products is maintained until they reach the consumer.

Effective inventory management systems track all processes related to the receipt and delivery of merchandise, and stock levels depending on the type of inventory.

In addition to tracking and controlling incoming and outgoing according to documents and invoices, which facilitates the tracking of all daily procedures.

In this article, we will show you all the details about effective inventory management, as well as its most important strategies and techniques, with an explanation of its most important benefits.

What is Inventory Management?

Before we begin to explain the importance of effective inventory management and methods, we will first need to know what inventory management is.

Inventory management is a process by which products are tracked and organized in the period owned by the company.

So that profit is realized and calculated when inventory is sold to customers. Inventory management is an approach to ordering, storing and selling both raw materials and finished products.

Benefits of effective inventory management

As for the importance of effective inventory management, there are many positive effects that can accrue to all parties in the business operations environment when using it.

Whether it is at the level of the organization and its administrative, manufacturing, sales and warehousing departments, or at the level of customers interested in the items and products of this organization. Therefore there is great importance to the availability of effective inventory management, and here are the main benefits from it:

1. Minimize errors caused by traditional methods

The importance of having effective inventory management systems is to reduce the amount of errors that can occur during traditional warehousing and inventory processes.

Where effective inventory and stock management systems are given an opportunity to review errors that can occur during the receipt, storage and transportation of goods; as computerized systems are involved in counting, reviewing and checking quantities and items in modern inventory systems.

Barcode systems used in inventory and inventory systems also allow recording all data related to goods or products.

The impact of any operations on these items is reflected in accounting as soon as any physical action takes place on them, which helps reduce errors, especially in the presence of high sales, purchases, storage and transfers.

2. Increase customer satisfaction

The process of inventory management is never separate from the satisfaction and service of customers who deal with a particular company or organization, provided that it is effective.

Where customer satisfaction is related to the availability of the goods or products they require, especially those that are in demand on a regular basis.

Where inventory management systems contribute to knowing the need and then supplying the commodity stock of a specific material in the event of a large demand for it.

This helps customers find the orders or products they want quickly and at any time.

3. Improve the review and audit process

The process of reviewing and auditing the operations that take place on the inventory is affected by the type and development of inventory systems, as some organizations resort to the use of tracking systems for all movements on various items.

This facilitates the review of operations on them and protects them from loss or theft. Modern inventory management processes also ensure greater care for financially valuable products.

By linking it to trackers that can locate and track its movement during transportation or delivery service, providing greater flexibility in audits, audits and inventory.

It is also possible by using modern inventory management systems to conduct a tracking and periodic review of some items to ensure their safety.

4. Save money and improve cash flow

By reducing losses, these effective systems provide the feature of tracking products that are close to their expiry date.

Thus bringing it to the fore for disposal first, so these systems help you keep track of your inventory automatically.

Effective inventory management also helps you identify which products are at the top of sales and which are least in sales.

Thus creating a strategy about the products you need to order, as well as the money you should keep on hand.

5. Evaluation of the company’s business

Effectively functioning inventory management systems result in excellent business valuation and financial analysis of your organization.

This is done by studying some financial rates and ratios related to inventory by the organization’s management.

One of the most notable is the inventory turnover ratio, which reflects the organization’s ability to convert its merchandise inventory into cash.

Inventory Management Process

Your company needs to fully follow the inventory management process through the system, in order to be able to manage the inventory effectively.

An effective inventory management process includes oversight of warehousing capacity and production, as well as follow-up on product sales.

This process takes place in two main stages, namely:

1. Obtaining the basic components and raw materials to stock them.
2. Selling quantities of finished products to final consumers on demand.

Steps in Inventory Management Process

As for the steps of the inventory management process, it is divided into two main steps, and each step has other sub-steps. where:

Step One | Determining the progress of the inventory management process

In which the identification of the tasks to be performed by each department is checked. The production department also sends the finished products to the sales department. The departments concerned are:

• Purchasing, which is the department responsible for purchasing raw materials to be stored in the warehouse.
• Production, this department specializes in using raw materials to develop and make finished products for sale.
• Warehousing, this section stores goods until they are distributed to end users.

Step Two | Assign duties to professionals

After the departments are identified, you will need to create job descriptions for the tasks that each individual performs, as well as create job descriptions for any new recruits for the number of jobs involved.

Inventory Management Techniques

The following are the most important techniques that are used in effective inventory management:

1. Setting Base Levels for Estimation

It is one of the most important inventory management techniques that will help you keep track of your inventory.

By keeping a base level for each product, this will help you determine how many products you have.

This technology will give you a warning sign when your inventory is running low and you will be able to set a base level for your products.

2. First-In-First-Out (FIFO), Last-In-First-Out (LIFO)

The principle of first-in-first-out is an important principle in organization and management, and the process of inventory management requires that the older products be taken out first.

The reason behind this is that old products are more likely to expire compared to new stock. The LIFO method is the other most widely used inventory management technique.

Which sells new products first and old products last. This method helps reduce the sales tax that producers need to pay for the products they sell.

3. Dropshipping

This technology is where products are sold directly from the supplier’s warehouse, and is one of the fastest ways in business models. Anyone can use it by creating and promoting their own website.

4. Just in Time Delivery

One of the most important techniques used in order management and inventory is the JIT method, through which inventory costs are reduced and inventory is acquired as needed.

Also, through JIT technology, the company will be able to deal with inventory that is not used or sold by customers.

5. Prioritize with ABC

The ABC technique is the best technique for effective inventory management for products that are sold in different categories.

Through it, the company will be able to prioritize its inventory by separating the products that require a lot of attention.

The following is how the products are categorized by this method:

• Products that sell slowly but are of high value.
• Products that are sold at a moderate pace but of moderate value.
• Fastest selling but low value products.

There is great importance for digital warehouse tools, as warehouses need to be equipped with the latest technologies that keep pace with huge developments. This is due to the rapid advances in technology, enabling companies to keep pace with manufacturing and production processes and consumer demands at the same time.

And through the use of digital warehouse tools, warehouses can be automated to obtain an intelligent warehouse that improves efficiency, productivity and accuracy of work.

It also provides digital repositories tools to provide flexibility and speed in the completion of work for employees. In this article, we will show you all the details about the most important digital repositories tools and their importance, and show you how to keep them flexible and efficient.

What are digital warehouse tools?

Digital warehouse tools are important elements that help you enhance your warehouse and keep pace with progress. It is used and supplied to warehouses, which helps in:

• Reducing human error.
• Productivity improvement.
• Reduce overhead.
• Increase the accuracy of assessing your workforce requirements.
• Reduce the risk of infection.
• Increase flexibility in working hours.

The most important digital warehouse tools in 2022

There is a set of common digital warehouse tools that must be used today to facilitate warehouse operations. And all of this will reflect positively on your productivity and sales.

Here are the most important digital warehouse tools that you need in 2022 and that will clearly improve your performance:

1. Automated Picking Tools

It is one of the digital warehouse tools that promote dramatic improvements in accuracy and productivity in warehouses.

These tools can be relied upon to improve item selection and labor allocation, which will reduce human error.

Automated Picking Tools includes many other important tools that will enhance the productivity and efficiency of your business.

2. Automated inventory control platforms

These two technologies, such as one of the digital warehouse tools, helped in getting rid of paper and pen in inventory operations or manually calculating cycles.

Especially since manual inventory involves a lot of errors that can cause huge disruptions during the work.

So Automated inventory control platforms help you to monitor inventory and make the inventory process automated.

This is because it is characterized by its high speed in collecting data and preparing accurate reports in real time.

3. A Warehouse Management System

Warehouse management systems help you collect all your data in one comprehensive platform that is easily accessible at any time.

Which gives you a complete view of your business and helps you in preparing reports and statistics on business efficiency in real time. This saves you calories in making the right decisions.

It is one of the most important digital warehouse tools, that there are a number of basic characteristics that must be available in the warehouse management system that you will deal with.

And the following are the most important of those basic features and characteristics in WMS:

• Access to real-time data gives you effective insight across the supply chain management.
• Increased order forecasting accuracy.
• Effectively allocate labor and thus lower your labor costs.
• Simplify your warehouse operations.
• Layout of the warehouse in the best possible way.
• Enhance and improve selection accuracy.
• Reduce time at work.
• Improve responsiveness and flexibility in your warehouses.
• Enhance your level of customer service.
• Enable the implementation of continuous strategies for improvement.
• Strengthen your relationships with suppliers.
• Increase and improve the security of repositories.

4. Automated Guided Vehicles

It is a very effective and useful digital warehouse tools, and this technology helps you in maximizing the process of storage and retrieval.

These mechanisms are self-guided, including the steering of forklifts and pallets themselves. And that is by tracking the digital tracks that will be programmed on them.

So Automated Guided Vehicles or AGVs as one of the digital warehouse tools help you easily boost your business growth.

5. IoT Implementation

The Internet of Things is one of the most important digital warehouse tools, through which you can control all the moving parts in your warehouse easily and remotely.

IoT technologies also help you monitor temperature, humidity, and other conditions. It can also integrate incoming data and effectively reduce cases of theft or forgery as well as preserve data from loss or damage.

So IoT as one of the digital warehouse tools helps synchronize all your data into an easily accessible network. This will facilitate inventory control and business planning, thus providing an outstanding customer experience.

There are many types of inventory systems used in companies, and the periodic inventory system is one of the systems used by some companies. In general, every company needs to know what it has in stock of the products or raw materials it uses; to learn how to manage it appropriately in line with the volume of demand for its products in the market. Thus, avoiding a sudden shortage or a large surplus that becomes useless, each organization uses the inventory system that is best for it. In this article, we will discuss the most important information about the periodic inventory system, as well as its advantages and the most important disadvantages.

‎What Is Periodic Inventory?‎

It is the inventory method by which inventory is taken at the end of each year, or when the company’s statement of financial position is prepared.

The periodic inventory is concerned with the actual inventory of the inventory, not just the book inventory, meaning that the number of quantities actually in the stores is counted and counted at the cost.

‎What is a Periodic Inventory System?‎

As for the periodic inventory system, it is one of the software systems that supports periodic inventory taking.

The company enters its inventory numbers into the periodic inventory system, then the system performs the initial review of the goods and reconciles the different data.

This system supports the current inventory keeping method, through which updated inventory lists can be obtained and printed, as well as the ability to calculate any data you want and settle inventory for new periods.

Periodic Inventory Accounting

And speaking of how to calculate the periodic inventory, there is a basic mathematical formula that is used in accounting for the periodic inventory. The main objective of that formula is to determine the cost of goods sold as well as the change in inventory each time period. The following is the accounting formula for periodic inventory:

• Closing Inventory = (Purchases + Beginning Inventory) − Cost of Goods Sold

‎Periodic Inventory System Advantages and Disadvantages

There are pros and cons to the periodic inventory system. Although it is easy and inexpensive, as we have indicated, it uses minimal information.

Also, through this system, you do not collect and disclose data in real time. And below we will discuss the most important advantages and disadvantages of the periodic inventory system:

1. The Advantages of Periodic Inventory System

Here are the main advantages of a periodic inventory system:

Simplicity, where this type of inventory is characterized by its simplicity, as it performs the inventory process through simple steps and with fewer calculations.

Low cost. In this method of inventory, you count the inventory at regular intervals, without the need to purchase sophisticated inventory control software, which has a high cost.

2. The Disadvantages of Periodic Inventory System

On the other hand, there are a number of serious drawbacks to this method of inventory, the most important of which are as follows:

Slow processing, because updating the periodic inventory system occurs after a specific period of time, and thus the process of tracking goods is difficult.

It may also not be suitable in some industries that need to modernize faster, such as clothing, as this system may negatively affect the revenues of that industry.

The Benefits of a Periodic Inventory System

The periodic inventory system has many benefits and this is probably the main reason why most companies rely on it as one of their primary inventory methods.

Especially since the periodic inventory system is characterized by its ease of implementation and its low cost, in addition to not requiring a large number of employees to deal with this type of inventory system.

The periodic inventory system is particularly suitable for small businesses, and by doing a basic count of their inventory on a daily or weekly basis, they can get a proper indicator of their inventory performance.