What is an Inventory Master File?
An inventory master file, also known as an item master file or an item catalog, is a master list that contains all the necessary information about products. Large businesses that produce items have master files that carry all necessary data regarding the finished products and the items that went into making the final product.
What is the Significance of an Inventory Master File in E-commerce?
Almost every business has an inventory master file to keep track of product details. It serves the following purposes:
- The master file contains all the details related to all products in production, which helps in inventory and supply chain management.
- The inventory master file also contains information about the materials needed to make the item. When the company runs out of materials for a product, they can find out beforehand based on the master file.
- The information also tracks how many products are currently left in inventory. So, when a customer places an order, the company can let them know how much product they can ship immediately.
What are the Prerequisites of an Inventory Master File?
Here are some of the prerequisites of an inventory master file:
- All items listed on the master file should contain the following details:
- Name of the product
- Type of product
- Price of the product
- Location of the product
- Quantity left in inventory
- The inventory master file should also have the details about the supplier of all products in case it needs reordering.
Use Cases with Inventory Master File
For example, if Company ABC makes tiles, then they would have all the details about the numbers, types, and prices of the tiles left in their inventory. They will also have all the details about the current raw materials in their inventory and make an order when necessary.