Inventory basically means to store something for later use. Later in the textile industries, it is necessary to store the necessary materials for the production of various textiles. This is called inventory. It can be of different types, such as: raw material, finish product, semi-finish product, etc. In other words, inventory can be defined as a product or material that is used in a business to meet the ultimate goal of resale.

Inventory control of textile and clothing warehouses
Inventory control of textile and clothing warehouses

The need to keep inventory

There are five basic reasons to keep inventory in the textile industry. The reasons are as follows:

Time: When an order is placed with a supplier, it takes some time to receive the order. This time is called ‘lead time’. Inventory has to be kept so that production does not stop at this time.

Seasonal Demands: Demand varies from time to time but the producer’s production capacity remains constant. The reason for this is to keep stocks. For example, shopping increases on holidays or festivals. So keeping these days in mind, more and more products are being stockpiled by the buyers to meet the demand.

Uncertainty: Inventory is mainly kept as a buffer to avoid uncertainty about demand, supply and movement of goods or products.

Economics of Sales: In the case of sales, it is said that the user has to have the product at the place where he needs it at that time. Inventory is needed to maintain this principle.

Application in Value: In some cases, it is seen that if the product is produced and kept in the store core then it is possible to get the right price. Generally, in the brewing industry, starch needs to be stored to make beer.

Inventory control: Inventory control is an important part of every industry. Inventory control of the clothing, textile, and fashion industries must be through their or the warehouse or store’s control. Inventory control is called stock management which helps to increase the efficiency of a garment industry organization’s warehouse and save time. Warehouse or warehouse management is very important in inventory control. So we first need to know what is meant by warehouse?

Warehouse: A good definition of a warehouse or warehouse is “a warehouse is a planned space for efficient storage and handling of goods and materials”. There are some basic differences between a warehouse and a store as the warehouse industry is outside the organization. It mainly acts as a distribution channel and helps to deliver products to customers in other cities.

Stores, on the other hand, are used in the industry to perform incoming activities, as well as to assist in carrying out manufacturing activities, such as storing finished raw materials. Stores always indicate raw material storage space and can be of a small range. Used for warehouse finished overall. It is always used to sell finished products or to move elsewhere. It tends to be larger in size. Some garment companies use their warehouses as buying or selling centers. In Germany, for example, warehouses are used as department stores.

Warehouse classification:

Modern warehouses or warehouses can be centers of different types of logistical activities. However, the warehouses are basically divided into four parts.

  1. Production Warehouse:   The main purpose of this type of warehouse is to store the raw material or semi-finished or finished products in the store core which will be used for production. Such warehouses are mainly located near the production site i.e. industry.
  2. Storage Warehouse: These types of warehouses are usually used for long-term storage of finished products as part of outbound supply chain operations. These types of warehouses were widely used at a time when industrial establishments were operating on a ‘make-to-stock’ or ‘push’ strategy. Now the use of this type of warehouse has decreased due to the ‘pool’ system. In addition, storage warehouses are used for repairs, maintenance, and similar operations where the necessary parts are stored to keep equipment or tools ready for repair.
  3. Fulfillment Warehouse: This type of warehouse is mainly used as a distribution center. It usually acts as a value addition center such as order fulfillment, labeling, packaging, cross docking, transportation, etc. This type of warehouse serves as the primary supply chain link between suppliers and customers.
  4. Storing and Consolidation Warehouse: This type of warehouse is not primarily used for storage, but for receiving large internal consignments and then breaking them down into smaller outbound loads. It is also used to consolidate large orders by loading small orders or loads to help reduce transportation costs.

Now we will learn how to control inventory: The purpose of inventory management is to strike the right balance between high and low inventory to reduce costs. In the textile industry manufacturing process, this is done in a few steps:

Apparel Warehouse Inventory Control:

Proper inventory control in the garment warehouse ensures competition in the international market. The following points need to be considered in order to store products in the warehouse:

  • Every place in the warehouse has to be used properly. This makes it possible to reduce space related costs.
  • Keep track of each inventory.
  • Small similar products should be kept in a specific bin or container. Care should be taken so that different small products do not mix.
  • Data collection can be done using technology such as radio frequency identification for inventory monitors so that the time is less and the process is faster.
  • Better inventory control will be possible if the staff is properly trained in the inventory management of the warehouse.

Some general guidelines for inventory controller of textile and garment warehouse:

Managing or controlling inventory is not an easy task. So this work needs to be done with considerable care.

  • First, the Economic Order Quantity (EOQ) has to be calculated. But it has to be done based on the annual demand. Here the economic order quantity indicates a specific order quantity where the total cost of ordering and saving is minimal.
  • Reorder point must be calculated. Order must be placed when inventory stock reaches a certain level.
  • Lead time has to be calculated and decisions have to be made accordingly. Lead time refers to how long it takes to place an order and receive these products at the factory.
  •  It is necessary to identify whether there is a need to keep Safety Stock . If protection stock is needed, you need to determine how much to keep.
  • Keep a record of when a product will be delivered. Everything needs to be properly maintained.
  • The condition of the warehouse for inventory should be ensured so that the valuable materials are not wasted due to any defect.

Inventory Control Requirements:

  • Ensure supply of product content.
  • Reduce costs associated with inventory.
  •  Better use of available strokes.
  •  Take a look at what materials are being wasted.
  •  Identify and dispose of inactive and obsolete items.
  •  Establish a supportive and reliable foundation for financial statements.

 The textile industry needs to maintain an accurate database and recording system for inventory control so that the status of inventory can be constantly monitored. Excel Database and ERP (ERP: Enterprise Resource Planning) software are commonly used in the industry to maintain inventory reports. Sometimes the additional burden is created when buying ERP software for small industries. So it is better for them to use an Excel database for better inventory control.

Inventory control of textile and garment warehouses with the help of software

An important point is that overproduction will create an additional burden of sales and unsold items occupy space i.e. accumulate as inventory and increase the cost of space. It is possible to reduce the cost of such inventory if it can be produced in the way that is required, that is, to ensure properly planned production.

As the demand for garments is increasing day by day, the textile and garment industries are increasing in terms of production. There are different types of inventory in the textile industry. Every year there are many unnecessary expenses for unplanned management in the garment industry. So proper inventory control is a very important issue. Therefore, the industries need to pay attention to this issue so that it is possible to survive in the world market by producing more products at a lower cost.

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