As business is squeezed ensuring profits are being made within inventory management channels is essential. It is amazing how many organizations overlook operations and programs in place. The impact to margins can be the difference between being profitable versus facing cutbacks and financial examinations within the channel.
A good system should work within your organization's means of operations and culture. See Penelope's top 10 methods below for improving inventory.
Top 10 Methods:
- Check in products immediately as they are delivered
- Place purchase orders
- Do a regular stock take
- Get the balance right
- Adjust for loss, write-offs and donations
- Cut out double-selling
- Set your minimum re-order levels
- Develop a good relationship with your vendors
- Get things out the door
Some of the above are process-driven, while other, such are implementing a barcoding system, are technology-driven. Manageing inventory, and turning over inventory can free up cash flow and improve overall company performance. Integrating with organizations to review your inventory sytem, and to find improvements is something that should be done to keep up with advances in accounting, warehousing and other platforms.