Inventory management is the process that controls the constant movement of inventory to meet production needs and consumer demand. If your stock isn’t continuously moving, then something isn’t working right. Companies generally have significant amounts of money invested in inventory, therefore it makes sense to control that inventory effectively. Steady inventory turnover is important to increase efficiency, reduce costs and improve cashflow.
Enough is enough. Or is it? Accurate forecasting is a major challenge of business planning, what with the need to navigate the variations of demand consistency, seasonal highs and lows or anticipating the unexpected. Without effective inventory control, you could be undertaking trials with considerable error.
A major benefit of inventory management is the ability for better forecasting. The historic data it provides, along with accurate sales data, seasonal trends, product supply information, delivery and lead times will help guide procurement decisions.
Maintaining the stock necessary for the realization of your business purpose, is a subtle balancing-act. You ned to determine how much stock is required to meet consumer demand while reducing carrying costs and minimizing waste.
Inventory management helps track products into and through the organization. Improving the balance is only possible when you are aware of what products are in stock, overstocked or need replenishing.
Knowing your finished goods inventory allows you to quickly convey information to sales staff, so they know what is available and ready to ship at any given time. Up-to- date sales reports, demand data, supplier lead times and shipping schedules help you calculate buffer stock if an emergency arises or units of stock prove defective.
Productivity and efficiency are greatly enhanced through good inventory management. The use of RF scanners and software programs improves the ordering processes. It reduces labour costs because there is less handling. The improved productivity frees up staff to concentrate on more important activities.
Better warehouse operations will improve dispatch and delivery activities. Knowing where the stock is located and ease of accessibility improves picking, packing and shipping efficiencies and speeds up order fulfilment. Quick deliveries increase customer satisfaction.
Inventory management matters. If you aren’t managing your inventory, how do you know what is really happening in your business?
Inventory management is much more then documenting the delivery of stock, into and out of the warehouse or retail store. It is a key indicator of the health of your organization. Inventory control streamlines operations and identifies areas for improvement.
Expert inventory management allows you better control, it improves forecasting, increases productivity and reduces inventory costs.
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Our customers are essentially what keeps your business running. Inventory management enhances customer service, can drive competitive advantage and encourage repetitive purchasing habits.
Systems track sales records. The ability to identify high turnover items gives you the means to ensure the on-hand availability of popular items. Accurate data reflects product availability to meet shipping schedules, improve fill rates or provide same day delivery.
In a highly competitive global market customer satisfaction can be the key differentiator between you and the competition. Good customer service improves customer satisfaction and fosters loyalty to deliver customer lifetime value.Topics: cost efficiency, inventory balance, inventory control, inventory management, inventory planning, productivity