Reduce Your Inventory Costs With These Strategies
In any business model, cutting unnecessary costs wherever possible is always a good strategy to improve company profitability. One area in which business managers may like to remove unnecessary costs is inventory. Inventory can entail a raft of costs — known and sometimes unknown or hidden — which can really lock up a business’ cashflow. ... Read More
March 12, 2020 inventory cost, inventory managementThe Why and How of Controlling Inventory Costs
The challenge of controlling inventory costs is a universal one for manufacturers, wholesalers and retailers alike. Inventory stock often accounts for a large portion of a business’s current assets and the cost of maintaining inventory is expensive. By reducing inventory costs, companies can improve profits, increase revenue and free-up capital t ... Read More
March 6, 2020 inventory costGet a Handle On Your Inventory Costs — Here’s How
Inventory is one of the biggest assets and biggest costs for a business. It allows you to store a wide range of products to meet customer demand, but without proper inventory control, your stock can be a financial drain if it’s mismanaged. You can use inventory control tactics to decrease your overall inventory costs and […] ... Read More
February 18, 2020 inventory control, inventory cost5 Causes of Inventory Waste That’s Costing Your Business and How to Avoid Them
Inventory waste can cost your business valuable time and resources. Inventory ties up capital and if you’re not managing it effectively it will quickly absorb important cash flow and worse, it can hide inefficiencies within your operations. It is crucial to optimise inventory control to help reduce your inventory waste. However, before you can re ... Read More
December 16, 2019 eliminate waste, inventory control, inventory cost, inventory stockAged Inventory Reports: What are they and how do they impact inventory control?
Aged inventory generally refers to inventory stock that has been held for longer than six months usually due to low consumption or slow sales. Aged inventory is not an overnight occurrence however, any surplus of inventory stock is both costing you money and restricting your cashflow. Aged inventory reports Aged inventory reports are documents that ... Read More
October 30, 2019 inventory control, inventory cost, inventory reportingIs Your Inventory Management Helping Your Bottom Line?
Do you know where your wallet is right now? Sure, every so often you misplace your wallet. It might end up in the pocket of a pair of jeans on the floor, but it’s safe to say that 99% of the time you know where it is. This is because wallets are our important personal […] ... Read More
March 22, 2019 inventory cost, inventory management, inventory turnover, profitability, stock turnoverThrifty Inventory Management to Save Money and Increase Profits
In today’s manufacturing arena, the common mantra is to produce more ‘faster, quicker, cheaper’ with the common goal being to instigate more interest through marketing, drive sales up and increase profits. This is all very well, however to achieve this goal, inventory management needs to be a focus. If inventory management is not considered c ... Read More
March 8, 2019 inventory control, inventory cost, inventory management, supply chainInventory Accounting: When Should You Use the Weighted Average Cost?
Accounting cost methods are used to control how a businesses inventory expenses appear on the company books. The weighted average is an accounting cost method used to value a company’s inventory by applying the average cost of on-hand inventory to each item of inventory stock. This means that both the cost of goods sold (COGS) […] ... Read More
February 6, 2019 cost of goods sold, inventory accounting, inventory cost, inventory managementImprove Your Financial Health with Better Inventory Control
There is a positive correlation between the quality of a company’s inventory control and its financial performance. Many financial ratios incorporate inventory values to measure aspects of a business’ financial health. For example: Inventory turnover ratio helps a business to plan and to more accurately forecast the cash necessary to reinvest i ... Read More
February 5, 2019 business costs, inventory accounting, inventory control, inventory costThe Weighted Average Cost Method: When should you use it?
Inventory management is a key factor in the success of every business: from ordering inventory to counting stock accurately, understanding your business’ inventory is essential. In this article, we look at one way you can do this, namely, the weighted average cost method. This method is commonly adopted by manufacturers and other companies wh ... Read More
January 4, 2019 average landed cost, inventory cost, inventory valuationThe Weighted Average Cost Method of Inventory Valuation
The weighted average cost method in accounting is one of three approaches of valuing your businesses inventory stock and determines the average cost of all inventory items based on the individual costs and the quantity of each item held in stock. Businesses use the weighted average to determine the amount that goes into the inventory […] ... Read More
December 17, 2018 accounting, average landed cost, business costs, inventory accounting, inventory cost, inventory stock, inventory valuationUncovering the Implications Behind the Weighted Average Cost Method
The weighted average cost method helps determine inventory valuation based on an average price per unit. The inventory is calculated by taking the average cost of all like-goods. The average cost is determined by dividing the cost of goods sold in the inventory stock, by the total number of goods that are on the market […] ... Read More
December 11, 2018 inventory cost, inventory stock, stock valuationHow Does the Weighted Average Method Work?
There are a variety of ways to measure the value of your inventory. If you’re a business owner, you might look at different tactics to see what work best for you. This may include the last-in-first-out method, the first-in-first-out method or the weighted average method. Unleashed Software uses the weighted cost method. There are pluses [… ... Read More
December 11, 2018 business costs, inventory cost, inventory stockInventory Shrinkage: A Ballooning Problem Without Inventory Management
When the physical count and value of stock does not reconcile to the reported value from the accounting system, inventory shrinkage happens. Essentially, there is a loss of stock and subsequent value that must be investigated and reconciled. Inventory shrinkage is quite a problem in and of itself, but also over time if not resolved, […] ... Read More
October 6, 2018 inventory control, inventory cost, inventory management3 Ways to Combat Inventory Shrinkage
Inventory shrinkage creates problems for businesses as it leads to a loss of sales and profits. A 2016 National Security Survey found that inventory shrinkage costs businesses $45.2 billion in 2015. In this article, we explain what inventory shrinkage may mean for your business and provide some useful tips for avoiding it. What causes inventory [&h ... Read More
September 28, 2018 inventory control, inventory cost, inventory management3 Causes of Dead Stock Inventory That’s Costing Your Business
What is dead stock? Dead stock inventory are items in your business that has not been or cannot be sold – inventory that has never been worn, used, or sold and has been on shelves for an extended period of time. Businesses that do not use good inventory management systems can end up having dead […] ... Read More
September 17, 2018 inventory control, inventory cost, stock management4 Ways to Rid Your Inventory of Dead Stock
Dead stock is the inventory stock that sits forgotten in the back shelves and far recesses of your warehouse. It is not likely to ever move from where it rests and slowly drains valuable resources. Every bit of warehouse space dedicated to dead stock is a lost opportunity, as you can’t keep more quantities of […] ... Read More
September 11, 2018 inventory control, inventory cost, inventory holding costsHow Can You Optimise Your Supply Chain?
Optimising the supply chain for efficiency can result in a reduction of costs by as much as 10 to 40%. But how do you go about creating an efficient supply chain? In this article we look at some actions to implement to build an efficient supply chain for your business. Automate your purchasing activities Small […] ... Read More
August 14, 2018 business efficiency, inventory cost, manufacturing, supply chain5 Types of Inventory Waste That Are Costing You Money
The types of inventory waste found in a business are not solely limited to damaged or outdated stock. Waste can be encountered in any activity that uses resources without adding any value for the end user. Instead, it increases cost, either to the manufacturer or to the consumer. Waste is a key area where businesses […] ... Read More
August 11, 2018 inventory control, inventory cost, inventory stock, waste reductionUnravelling the Costs of FBA
In a previous article, we discussed what Fulfilment by Amazon was, and the benefits it can bring to businesses. FBA can be a useful tool for many sellers but the fees can sting. It is useful to see if FBA provides a good return on investment or if it is just driving up the overall […] ... Read More
July 24, 2018 Amazon, inventory cost, inventory stockAccounting Basics for Your Inventory Stock
Inventory management is the precise control of a business’ inventory incorporating raw material, WIPs (works-in-progress) and completed goods. The reason why inventory must be managed accurately is that it costs money to acquire or make and therefore if not controlled properly, it can represent a huge money drain to the company. Therefore, a larg ... Read More
January 8, 2018 accounting, cost of goods sold, inventory accounting, inventory costABC Analysis: Focusing on the Critical Few
In most stock-based businesses, the Pareto Principle, often known as the 80-20 rule, holds true for most aspects of inventory management. Roughly 80% of the value of a business’ inventory is usually tied up in about 20% of its product lines. This implies that managing the top 20% of a business’ inventory is critically important. […] ... Read More
December 15, 2017 abc categorisation, efficient inventory management, inventory control, inventory cost