Inventory tracking excel template is one of the best supply chain management tools. It is really important for companies to track inventory levels in real-time. This template is used for tracking every type of inventory.
The inventory tracking template helps the company to track all the stock-keeping units in possession of a company. Where these SKUs are stored? What quantities of each are available?
There can be different types of inventories in the workplace. Let’s suppose a company that produces assembles motorbikes will have three major inventories at the manufacturing facility.
Inventory Tracking Excel Template
As we know that inventory tracking is the main part of stock-keeping because it helps us to evaluate and calculate the exact amount of current stock quantity that is available and those that are in the supply chain chart circle.
Firstly, the raw material inventory or motorbikes assembler involves all the parts of the motorbike that are required at the final assembly line.
Secondly, the inventory of spare parts and accessories is required to keep the assembly line and equipment functional. Finally, the finished goods inventory ready to dispatch.
Furthermore, this tool also helps to manage the production schedule for manufacturing companies.
How Does the Inventory Tracking Excel Template Works?
An inventory tracking template is a tool that helps to track the SKU inventory levels in real-time for effective inventory control.
It helps to understand exactly how much the product is ready to ship, how much can be delivered based on the lead times of BOM. There using a tracking inventory using templates gives transparency and accuracy to the inventory management process.
Let’s understand the working principle of the inventory tracking excel template by the same motorbike assembler example;
Without proper inventory tracking tools, the company just knows that it has roughly a few thousand bike assembly parts in inventory. They believe that as soon as the inventory will run low. They will demand more.
However, if a company keeps an exact record of its inventory like it knows they have 1,000 frames, 1,000-wheel pairs, 1,000 fuel tanks, and so on. Also, the whole inventory stock is fully inspected to be used without any defects.
Moreover, the company knows the lead time of vendors, current demand, and future demand forecast. It shows that the company is tracking its inventory effectively and familiar with the exact re-order point.
Inventory Tracking Methods
There are several methods available for physical tracking and management of the inventory and stores. Let’s discuss a few of the most commonly used ones;
The universal product code is the most common barcode-based tracking method. It is used to track the moment of product throughout the supply chain by integration to inventory tracking excel template or professional software.
It is commonly found on grocery store items that contain item descriptions, prices, and units of measurement.
Also, the RFID (Radio Frequency Identification) method is used to track inventory levels. There are two states of RFID tags. Active and Passive RFID tags. Active RFID tags are used for real-time tracking of the products. While passive tags are scanned with the help of handheld scanners.
Format of Inventory Tracking Excel Template
Below there are some essential elements that must be included in this format;
- Current Stock
Stock In Return
Category Wise Stock
Product Wise Stock
in the current stock section we put actual stock figures after that we add total stock values in the current currency rate. Stock-in section reserve for those stock that recently comes in our stock and stock-out is those stock that is recently delivered or goes out of the warehouse.
In stockout return, we add those quantities that are returned due to any kind of reason. We can also manage stock by their category and product-wise according to our requirements. This management tool will also help you to make your delivery schedule plan too.
Challenges to Inventory Tracking
There are few challenges faced during the process of tracking the inventory. Every method of tracking the inventory will face these challenges. These challenges can be managed with good management practices;
- The more inventory a company has; the more it gets difficult to track.
- Inventory keeps on changes and doesn’t stay still.
- Tracking inventory is a time-consuming process.
Regardless of the above challenges, a company can effectively track its inventory using an inventory tracking excel template.