4 Causes of Inventory Discrepancy in Your Stocktaking (And What You Can Do About It)
An inventory discrepancy happens when the actual on-hand inventory stock is different from the item quantity recorded in an inventory system. Discrepancies are not uncommon and can have a substantially negative impact on any business operation. Undetected stock discrepancies can result in lost sales, overstocking and poor customer service. Frequent ... Read More
January 7, 2020 inventory control, inventory levels, inventory management, stocktake3 Common Methods for Analysing Inventory on the Balance Sheet
Business owners need to take care when analysing information displayed in the company’s balance sheets. A statement of the assets, liabilities, and capital of the business, the understanding and interpretation of the balance sheet can have a huge impact on the direction of inventory management and the overall success of the business. It is extrem ... Read More
August 13, 2019 inventory balance, inventory levels, inventory management, inventory management systemWhat is a Deterministic Model of Inventory?
It is so important to maintain the optimum level of inventory, but sometimes it is easier said than done. The good news is that there are proven models and methods that have been developed for determining the optimum level of inventory stock for your business. Models can only help with predictions and forecasts, and they […] ... Read More
May 18, 2019 inventory control, inventory levels, inventory management, stock controlUnderstanding Inventory Par Levels in Business
As any business owner or inventory manager knows, balancing inventory and managing inventory levels effectively can be the backbone of any business. While a company is smaller, managing inventory may be a relatively simple task, but it can quickly become more and more difficult as the business growth along with the customer base. In this […] ... Read More
May 4, 2019 inventory control, inventory levels, inventory management, inventory management software, stock controlHow To: Improving Your Inventory Turnover Ratio
If you’re in business, you may have heard of something called inventory turnover. So, what exactly is it and why is it important for business owners? In this article, we explore the ins-and-outs of inventory turnover and how you can improve your inventory turnover ratio to maximise the success of your company. The basics Essentially, […] ... Read More
December 7, 2018 excess inventory, inventory control, inventory levels, inventory management softwareThe True Cost of Poor Inventory Control
For small businesses just starting out, inventory management may seem like an unnecessary burden, but it is, in fact, one of the key processes involved in running a successful company. Good inventory control can improve sales, customer satisfaction and the overall productivity of a business, so it is essential that you do it right. In […] ... Read More
December 7, 2018 excess inventory, inventory levels, inventory management software, stock level6 Ways SMEs Can Improve Inventory Turnover (And Why it Matters)
To ensure your small business is operating efficiently, effectively managing inventory and meeting customers’ needs, you should aim to improve inventory turnover. This, in turn, will help optimise business cash flow and maximise profits. Inventory turnover is the number of times a business sells and replaces inventory within a specified timeframe ... Read More
November 30, 2018 inventory levels, inventory management, inventory turnoverAccounting for Inventory: The Impact of Inventory Discrepancies on Financial Reporting
Proper inventory valuation is important when accounting for inventory through financial reporting. If inventory is not correctly valued inventory discrepancies will impact financial statements such as balance sheets, income statements and statements of retained earnings. When accounting for inventory the recorded amount is the total quantity and va ... Read More
October 25, 2018 accurate stock levels, inventory control, inventory levelsHow To Incorporate Demand Forecasting Into Your Business
Demand forecasting is a fundamental part of the business. It plays an integral role in shaping how a business operates each month and each year. If a business wants to be successful with their inventory control, it’s necessary to plan for the many components of supply chain management. Forecasting tools will never be 100% accurate, […] ... Read More
October 16, 2018 inventory control, inventory levels, inventory management, supply and demandDon’t Let Inventory Discrepancies Affect Your Accounting
A reliable stock taking procedure allows businesses to know its inventory count and value, not only informing decision-makers and driving operations but also ensuring accurate information is available to accountants, auditors and financial controllers who prepare annual reports, balance sheets and essential statements of earnings. Identifying discr ... Read More
October 13, 2018 accounting, inventory accounting, inventory levels, stock takeHow Smarter Businesses Plan to Forecast Demand
When many businesses forecast demand, even the most studious companies will not get it 100 percent accurate, instead of perfection, the focus should be on minimising errors. Planning is one of the core functions of supply chain management that can help minimise errors and thus increase the accuracy of forecasting demand. Understanding and predictin ... Read More
October 10, 2018 demand forecasting, inventory control, inventory forecasting, inventory levelsWhy You Need to Get Demand Forecasting Right
An accurate demand forecast is essential for good inventory management so it is vital that business owners get it right. In this article, we explain why demand forecasting is so important, and provide a few tips and tricks on how to get it right. Back to the basics Demand forecasting is the process of using […] ... Read More
October 8, 2018 demand forecasting, inventory forecasting, inventory levels, inventory managementZero Inventory: A Primer for Manufacturers
With more and more businesses touting zero inventory as the secret to their success, boards and executive teams are increasingly looking at cutting stock as a way to gain a competitive advantage. Zero inventory is the practice of keeping little to no inventory often through a use of just-in-time production or manufacturing inventory as a […] ... Read More
October 1, 2018 inventory control, inventory levels, inventory management, manufacturersTake Stock: Cut Inventory Stock Costs to Zero
Keeping inventory costs – a lot. Traditionally, manufacturing and distribution businesses have held inventory stock, usually at an expensive but what was seen as necessary surplus, to ensure their ability to produce sufficient goods to meet customer demand, thereby generating revenue and profit. But your company can now cut expensive stock-ke ... Read More
September 26, 2018 inventory control, inventory levels, inventory stockWhat is Zero Inventory and How Does it Work?
Inventory control is undoubtedly one of the biggest challenges in supply chain management and poor forecasting can leave companies with significant funds tied-up in excess stock. However, new technologies provide better inventory control solutions and with a more collaborative approach to supply chain partnerships, there is an alternative to holdin ... Read More
September 26, 2018 inventory control, inventory levels, inventory managementThe Difference Between Safety Stock and Cycle Stock Inventory (And Why Safety Stock is so Important)
A company’s on-hand inventory stock generally consists of both safety stock and cycle stock inventory. The cycle stock is the inventory expected to be sold based on demand forecasts, while safety stock is extra or buffer stock to meet excess demand, to protect against delayed shipments from your suppliers, or guard against unforeseen problems suc ... Read More
September 18, 2018 inventory control, inventory levels, inventory stock, safety stockStock Taking for the Drinks Industry
Inventory management and stock taking are painful processes for any business, however it seems it can be a far more daunting task for the drinks industry due to the level of estimation required and variances in the quantity of product sold. If you are a bar owner however, do not despair as there are tried […] ... Read More
December 25, 2017 beverage, beverage industry, inventory levels, stock levels, stock takeInventory Management Faux Pas
Inventory management is such an important part of business. It enables the smooth progression of inventory stock all the way from receipt, to manufacture to the storeroom and right into the customer’s waiting hands. Let’s look at what not to do when managing your inventory. Spreadsheet? Tick. Job done A big faux pas in the […] ... Read More
December 6, 2017 distributors, inventory levels, inventory management, wholesaleInventory Challenges During the Holiday Season
The holiday season can be an exciting time for retailers and manufacturers. Businesses can expect a surge in demand, and hopefully, an associated surge in sales. However, the holiday season can also be a challenging time especially regarding your inventory control processes. During the peak of the holiday season, your attention will likely be on [& ... Read More
December 4, 2017 inventory levels, seasonal demandThe Art of Improving Inventory Management
Inventory management is a key component of small, medium and large businesses. If there is one thing that they all have in common, it is that there is always room for improvement. Getting the right level of inventory can be a delicate balance between ordering too much and having too little on hand. There are […] ... Read More
August 31, 2017 inventory levels, inventory management, inventory management software, inventory tracking, stock levelsStock Management Improvements For Better Performance
Stock management affects a company’s performance in many ways. Too little stock can lead to a reduction in sales and a loss of customers, and too much can drastically inhibit profit. It is therefore crucial that managers find an equilibrium between the two extremes. Stock management methods can greatly influence the productivity and profitability ... Read More
August 17, 2017 business performance, inventory levels, inventory management, profitability, stock managementWhy correct inventory levels are a must
Keeping correct inventory records is a major management tool for any business that carries inventory. Businesses need to be able to rely on accurate inventory levels to operate and fulfil client orders. Here are some of the key benefits from accurate inventory management: Correct inventory levels are essential for planning By having correct invento ... Read More
August 1, 2017 efficient inventory management, inventory levels, stock management, stock take