With an effectively managed inventory in place, business owners can experience a significant boost in their enterprise, both in the terms of efficiency as well as productivity. Efficient management and control of inventory practices results in a two-thronged benefit, with there being clearer visibility as well as better cost-efficiency and customer fulfillment. As far as cost-efficiency is concerned, inventory management works in two ways- firstly, it helps in reducing operating costs, and secondly, it increases repeat orders due to there being more satisfied customers.
With a well-managed inventory, business owners can steer away from both extremes of an inventory- under-stocking and over-stocking. Inventory managers are increasingly becoming aware of the need to increase inventory turnover ratio, and to clear old inventory periodically. These simple strategies are an efficient way of keeping the working capital flowing, and determining which items are worth investing in, when replenishing the inventory. On the other hand, having what your customers are looking for most of the times, is a sure-shot way to increase customer loyalty and satisfaction.
While it was previously sufficient to monitor the physical movement of materials in the inventory and maintain inventory balances, the definition of inventory management has changed for modern businesses. It now includes additional tasks like devising replenishment techniques, analyzing the projected inventory in relation to the current one, setting targets over specified term periods, and making necessary changes in the execution framework. These efforts help in creating a competitive edge in the market for the products being sold, hence contributing to enhanced productivity of the business.
Most businesses are now adopting computer-based inventory management systems, which can be integrated into the pre-existing system being used by the business. Such a system makes inventory data easily accessible, enabling employees to look into details of the inventory like reorder statuses, and the movement of various products, in just a single click. In order to make the most of inventory management, business owners should bear the following tips in mind-
McLane Logistics Technology provides reliable and customized inventory management software to give your business a competitive edge. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.
With a well-managed inventory, business owners can steer away from both extremes of an inventory- under-stocking and over-stocking. Inventory managers are increasingly becoming aware of the need to increase inventory turnover ratio, and to clear old inventory periodically. These simple strategies are an efficient way of keeping the working capital flowing, and determining which items are worth investing in, when replenishing the inventory. On the other hand, having what your customers are looking for most of the times, is a sure-shot way to increase customer loyalty and satisfaction.
While it was previously sufficient to monitor the physical movement of materials in the inventory and maintain inventory balances, the definition of inventory management has changed for modern businesses. It now includes additional tasks like devising replenishment techniques, analyzing the projected inventory in relation to the current one, setting targets over specified term periods, and making necessary changes in the execution framework. These efforts help in creating a competitive edge in the market for the products being sold, hence contributing to enhanced productivity of the business.
Most businesses are now adopting computer-based inventory management systems, which can be integrated into the pre-existing system being used by the business. Such a system makes inventory data easily accessible, enabling employees to look into details of the inventory like reorder statuses, and the movement of various products, in just a single click. In order to make the most of inventory management, business owners should bear the following tips in mind-
- An accurate entry must be made for each stock receipt.
- The business should devise a replenishment strategy for each item in the inventory.
- Excess inventory and on-going dead stock should be efficiently handled with pre-decided strategies.
- Businesses should invest in a stock-analysis tool for instantly available information regarding the inventory.
McLane Logistics Technology provides reliable and customized inventory management software to give your business a competitive edge. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call them at 1-800-989-7568.
