While companies should always fear the over-investment in stock that just sits in the warehouse that will eventually be used one day, a larger concern is that stock that is required immediately has yet to be ordered for projects with medium-length deadlines for completion. If the stock is there when it is needed, this leads to greater customer satisfaction and less interruptions to throughput — choose SIMMS 2012 Inventory Management software to help you stay ahead of what is needed.
The need for order flow keeps those involved in warehouse management aware of precisely how many orders have been created and how many units of inventory stock items they will need. In such cases, the purchase orders placed with their company’s various vendors. This smooths the process by reducing the number of purchase orders created in the system, and enables the items placed on negative stock to be added to existing purchase orders before they go out.
When making up sales orders, sometimes users may want to create them while not having the necessary quantity on hand. Negative stock enables users to create those sales orders, save them, and then eventually through the use of backordering, to receive the stock into their warehouses and replace the negative stock with actual items at some future date.
SIMMS Inventory Management software incorporates the concept of negative stock, which can be one of the most useful concepts for many businesses to coordinate their stock orders.