No-one wanted the downturn but it’s here.
What can you do to improve the impact of inventory on your business? In today’s economic climate taking control of your inventory can make your business more profitable.
There are three things every business can do to improve their inventory management.
- Timing
When are you ordering your inventory? What’s the turn over? All purchases of stock tie up your cash and credit. Tracking how much inventory you have is something most people do – tracking when you order is the next step.
If you can time your inventory orders to minimize the impact on cashflow, you’ll be ahead of the game.
Why?
You may be able to reduce the amount of stock you are holding and improve your payment terms.
- Automate
Be honest: inventory counts don’t really happen, do they? Automating your inventory reports and ordering is the best way to eliminate error and overhead. A professional inventory management system can help you take control of this process.
Automated stock ordering will eliminate errors, miscommunication and save your reputation. No-one wants to be on the phone with a client explaining how you forgot to order something.
- Accountable
Someone needs to be responsible for the success of inventory management. Make sure that managing the inventory is someone’s job. Someone needs to be accountable and trained for the position.
In summary, managing your inventory will improve your cash flow and operational efficiency.