Inventory refers to the stock of goods and materials that a business holds for the purpose of production, resale, or use in its operations. It includes raw materials, work-in-progress items, and finished goods. Inventory is a crucial aspect of supply chain management, and effective inventory control is essential for businesses to meet customer demand, minimize carrying costs, and maximize operational efficiency.
Settle's inventory system extends beyond tracking, incorporating robust forecasting tools, such as demand forecasting, inventory planning, and reorder actioning, ensuring businesses can optimize their stock levels and stay agile in response to market demands.
Inventory States
Settle uses the below terms to track and store inventory:
Incoming Inventory: This includes inventory for which a Purchase Order, Work Order, or Inventory Transfer has been cut, but the items have not yet been received.
On Hand: This denotes the total quantity at a location.
Available: The count of units that are ready for sale or use in work orders.
Reserved: This indicates the number of units that have been ordered but not fulfilled, consumed, or made available for sale. Additionally, reserved inventory may include items set aside for future use, such as those associated with pre-orders, even if they are not physically on hand.
Seeing inventory in Settle
You can see your inventory in Settle from your Catalog page. Inventory in aggregate- through the Total column- and at each individual location. If there is no inventory information at a given location, you will see a -- instead of a 0 . A zero indicates that there used to be numerical values.
What updates inventory?
Inventory can be updated in Settle through manual inventory updates and through our WMS integration. All purchasing, receiving, and transferring updates, independent of source, will update inventory. Accounts that use a WMS should see if our Trackstar integration is right for you.
FAQs
How do you manage waste in manufacturing or write-offs of finished goods?
We manage write-offs during the end-of-month (EOM) reconciliation process. For manufacturing, we recommend incorporating standard waste directly into the Bill of Materials (BOM).