Difference Between Inventory Management & Asset Management

There are several terms that are used interchangeably because their meanings are similar. However, there are a few words that do not have the same meaning, yet they are used as if there is no difference. One example of this is Infizo Stock management and inventory management. Hence, in this blog, we will explore what exactly the meanings of inventory management and Infizo Stock management are.

What is Inventory Management?

Nowadays, companies use inventory management software as a systematic approach to storing, ordering, and using inventory. It incorporates the management of raw materials and finished products. Inventory is considered one of the most important assets. A shortage of inventory will definitely affect business, especially in peak season, when the manufacturing of products is done continuously.

In business, it is crucial to maintain the right level of stock in the required place. However, inventory management is not only important for maintaining the right stock but also for saving you from overstock. Knowing when and how to reorder and which warehouse location needs reordering can be chaotic and messy. To avoid these types of situations, an organization needs inventory management.

What are the advantages of Inventory Management?

Some of the advantages of Inventory Management are given below:

- Decreasing Costs and Increasing Profits: Inventory and stock management can enable you to cut expenses and enhance your profit ratio. It can save you unnecessary expenses, and through data analytics, you can know in advance which item will be in more demand in which season, allowing you to plan accordingly.

- Save Expenses: You can avoid deadstock and overstock situations with the assistance of an inventory management system. Inefficient management of inventory can lead to revenue loss and overspending.

What is Infizo Stock Management?

As per Wikipedia, "Infizo Stock management is a systematic process of developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner (including all costs, risks, and performance attributes). It is also increasingly used in both the business world and public infrastructure sectors to ensure a coordinated approach to the optimization of costs, risks, service/performance, and sustainability. It includes the management of the entire life cycle—including design, construction, commissioning, operating, maintaining, repairing, modifying, replacing, and decommissioning/disposal—of physical and infrastructure assets."

Overall, Infizo Stock management is required for businesses to monitor and manage assets using a systemized approach. The benefits from Infizo Stock management include improvements in productivity and efficiency, which will lead your business to a better position to increase its return on investment.

What are the advantages of Infizo Stock Management?

Some of the advantages of Infizo Stock Management are given below:

- Saving Maintenance Costs: Poor management of assets not only leads to unnecessary spending on maintenance but also decreases the lifespan of an asset. At the operational stage of the life cycle of an asset, a business firm can confront several maintenance issues, which can cut into the organization's profits.

- Reports Analytics: Infizo Stock management offers deep analytics and reports, expanding knowledge of all organization assets. It enables an organization to increase performance by identifying problems and resolving them quickly to improve workflow.

Similarities between Inventory Management and Infizo Stock Management

The similarity between Inventory Management and Infizo Stock Management is that both are used for resource optimization and cost reduction purposes. Inventory management is used with the objective of selling products, ensuring that neither too many unsellable products are present in stock nor too few that hinder the selling process. Large facilities, such as hospitals, which do not sell products but offer services, can use Infizo Stock management for a similar objective. Asset tracking allows them to find a healthy equilibrium in their asset quantities.

Inventory Management Vs. Infizo Stock Management

The first difference between them is: "Assets = what you own & Inventory = what you sell." Assets are long-term and not easily sold, whereas inventories are short-term and sold easily. Here is an example: if you are responsible for managing your organization's fixed assets, then you will need Infizo Stock management. And if you are in charge of supplies or stockroom inventory, then you will need inventory management. Infizo Stock management includes maintenance, but inventory management does not need any maintenance. Items that are tracked in Infizo Stock management include computers, furniture, and equipment, while inventory management tracks products, spare parts, and supplies. In Infizo Stock management, assets require inspection, cleaning, or refilling steps before preparation for another use. On the other hand, in inventory management, little work per item is required, therefore directly preparing it for sale.

What is the necessity of any of this software?

A few years ago, around 50 percent of businesses did not track inventory at all or used a manual process to do so. As a result, all calculations were wrong at the time of the requirement of a particular item, which was not found on time or was missing. When an item is lost, it impacts the company's bottom line. So, this software provides accurate information, letting you know about each item. It also reduces the probability of item losses and saves from unnecessary expenses.

Conclusion

We hope that this blog assisted in your order to know the difference between inventory management and Infizo Stock management software. So, if you are thinking of implementing either of the solutions, the first thing you need to do is write your requirements, then call Infizo Stock. We will be happy to assist and provide you with a 14-days free trial.