When should you consider using a combination of tracked and untracked inventory items?

Using a combination of tracked and untracked inventory items is particularly beneficial when a business offers both products and services. In this context, tracked inventory items can refer to tangible products that need to be monitored throughout the supply chain, such as stock levels and costs associated with goods sold. Untracked inventory can cover the intangible aspects often related to services, such as labor hours or professional services that are not counted in inventory.

By utilizing both types, businesses can efficiently manage their operations and pricing strategies. Tracked items allow for precise management of physical goods, while untracked items enable flexibility in how services are sold and delivered. This combination provides a holistic view of inventory management, helping to streamline processes and enhance profitability as businesses serve diverse needs while maintaining accurate records of both tangible and intangible assets.