According to Founder Jar, about 34% of retail businesses shipped an order late because their items were sold out of stock. Shipping orders late delays delivery and lowers customer satisfaction, and as a growing business, you cannot afford dissatisfied customers; the success of your business hinges on it. 

On the flip side, if you have more items than you need, you are also taking a huge risk. You could end up with expired products if they are not sold out. Material Inventory forms help you keep track of products in your inventory, enabling you to restock as needed. 

This guide will explore why you need a material inventory form, its key components, and a free template to get you started.

How to Use Google Forms for Inventory Management

Why Do You Need a Material Inventory Form?

A Material inventory form is a document that allows you to record all the essential information about the materials or products in your inventory. It helps you monitor your stock levels, identifying the items that need restocking and others that are still sufficient for your customer demand.

Material inventory form plays a huge role in helping you meet customer demands by having the products they need when they need them. It also maximizes your budget by prioritizing items with low stock rather than buying everything.

Another thing to note about material inventory forms is that they vary by industry and use case; a painter’s material inventory form will be different from yours if you run a pastry shop. But all material inventory forms operate on the same basis—they help you keep track of all the supplies or materials you use.

Types of Inventory Reports Every Inventory Department Should Generate

Unpacking the Parts of a Material Inventory Form

A material inventory form’s primary goal is to capture information that allows you to track your inventory stock effectively. So, here are the essential fields your material inventory form must include:

A. Item Details 

This section helps you collect all the information you need about each product. This includes:

• Name or description: This helps you categorize each product specifically. Instead of saying “electric cables”, the name and description field lets you specify the type of cables, e.g., 10m power cables.
• Identification number or code: This is typically a bar code or a unique number assigned to each product to help you easily see the details such as price, quantity, etc.
• Quantity on hand: This highlights the exact amount of material you currently have. 
• Unit of measurement: This is also like quantity on hand, but you specify using a unit of measurement. For example, 50 pieces of 10 lbs of caramel powder or 2 gallons of vanilla extract.

B. Location Information 

This section helps you create a map for locating your materials. This will save you time and effort searching for them, especially if you have a large inventory. This ensures you will always know exactly where to find specific items whenever you need them. Here are the primary location fields to have in your material inventory form:

• Material Storage: This specifies the warehouse or shelf where your items are located.
• Specific location: If you have a large inventory, you can make your items easier to find by recording the aisle, shelf, or bin number of each product.

C. Supplier Information

This helps you record everything you need to know about your supplier, enabling you to restock your inventory easily. 

• Name of the supplier: The name of your supplier or the company from which you bought the materials.
• Contact details: Phone number, email, or website for reordering or inquiries.
• Purchase order number: A reference number for your order with the supplier that helps track past purchases.

D. Date Information

This system allows you to track the arrival dates of your items and leverage that information to determine their demand. This will help you identify high-demand products and prioritize stocking them.

• Date of receipt or purchase: When did you purchase this item, and when did it arrive at your store?
• Expiry date (if applicable): Some materials, like food or medicine, have expiration dates. Knowing this information reminds you to sell them before they expire; you could even offer promotions on these items to encourage customers to get them before they go bad.
• Last inventory update: This is the last date your material levels were counted and recorded.

E. Condition and Quality

This helps you monitor and note the condition of the items in your inventory. So this section typically includes:

• Notes on the condition: Are there any damaged items or anything nearing expiration?
• Quality standards or specifications: Some materials may have specific quality requirements. This section helps ensure your materials meet the needed requirements for their use case.

F. Usage and Replenishment

This section considers the information you have recorded about your inventory and helps you determine when to restock materials. The following are the major fields to have in your usage and replenishment section:

• Usage history or consumption rate: How much of this item do you typically use in a certain period?
• Reorder point or minimum stock level: This is the minimum material you should have before getting more. It helps you to determine when to order more supplies to avoid running out.
• Replenishment lead time: Ordering new supplies takes time. After placing an order, this section helps you factor in how long it takes to get new materials from suppliers.

Importance of a Material Inventory Form

• Inventory Control:  The material inventory form gives you a clear overview of what you have in stock, from raw materials like flour in the bakery to spare printer cartridges in an office. This allows you to monitor your inventory levels, preventing you from overstocking low-demand items or running out of high-demand items.
• Cost Management:  Excess inventory sitting around isn’t just taking up space; it’s also tying up your revenue.  The material inventory form helps you prevent this by indicating when to reorder and the exact quantity of needed materials. This minimizes unnecessary spending and avoids stockouts that could halt production and affect customer satisfaction.
• Efficient Operations:  A well-managed inventory, tracked through a material inventory form, provides real-time knowledge of your product stock. This ensures a smooth workflow by preventing production or service disruptions due to sudden supply shortages, increasing your operation efficiency.
• Compliance and Accountability: Some industries regulate the storage of certain materials. The material inventory form helps you comply with these regulations by providing a documented record of your storage method. It also promotes accountability within your organization by clarifying who manages material stock levels.
• Data-Driven Decision Making:  The material inventory form is a very valuable data source that helps you track inventory usage over time, allowing you to identify trends and patterns in your stock levels.  This data enables you to forecast future material needs, plan purchasing strategies, and make informed decisions about your inventory management.
• Cost-Effective Inventory Management Method: For small or medium-sized businesses, material inventory forms offer a budget-friendly way to manage inventory effectively without a significant software investment. This helps you minimize your operation costs and maximize your profits. Of course, as your business grows, you can integrate your material inventory form with inventory management software to automate your inventory control tasks.

Conclusion

Material inventory forms provide a centralized and organized system for tracking material stock levels, helping you to make data-driven inventory management decisions. This enables you to maintain accurate inventory records and streamline inventory management processes.

However, material inventory forms are only efficient when they reflect your real-time material stock levels, so regularly update them. Also, using a material inventory form template saves you time by providing all the necessary fields in your form, allowing you to skip straight to recording and tracking your inventory. Get started with this free material inventory form template!