Understanding the 4 Types of Inventory


What are the 4 types of inventory?

In today’s fast-paced supply chain, it’s crucial for companies to efficiently manage their inventory. Start by understanding the four types of inventory in just 58 seconds.

Efficient inventory management is a must for today’s supply chain. The worldwide cost of inventory distribution tops $1.9 Trillion annually. That’s a lot of SKUs!

Knowing the four types of inventory most commonly found in enterprise manufacturing and distribution is critical. They are:

  1. Raw Materials: Components used to create a finished product.
  2. Work-in-Progress (WIP) Inventory): Partially completed items.
  3. Finished Goods: Ready for sale to customers.
  4. Safety Stock: To cover unpredictable market fluctuations.

Other types of inventory exist, such as MRO inventory and consignment inventory, but these types are only used in specific situations. Knowing the 4 main types of inventory and how to manage them is essential.

Streamline your materials management with mobile solutions to gain real-time visibility, control, and cost savings for all inventory types today.