July 26, 2017
Tips For Paying Attention To Inventory
When you’re a business manager or owner, one of the things that you’re going to pay attention to most closely is going to be inventory. How much of a certain thing you have? How much can you sell? Where do all of your physical products fit with respect to warehousing and distribution? These are extremely important questions, and if you don’t take the time to answer them consistently and cyclically, you may end up with unfortunate financial circumstances.
Invest In Inventory Management
One of the simplest solutions to help you get a bird’s eye view of your inventory at any given point is to invest in an inventory management system. Typically this is going to be a third-party software package that steps you through all of the processes to do your initial inventory, and then follow along with any sort of trends going into and out of your stock on a real-time basis. Many inventory management programs are largely customizable too, which helps in maintaining a certain degree of efficiency.
Check Your Financial Flow
When inventory comes and goes, each iteration should come with a gain or loss in terms of finances. These financial changes are going to be shown on your income and expense reports. So, if you want to pay close attention to inventory not just in a physical sense, but also in a practical sense, then make sure that at least someone in your company is in charge of checking and balancing inventory finances on a daily basis. If anything that looks out of sync at any point, it should immediately be brought to your attention in order to prevent loss along the way.
Factor In Maintenance
Depending on what your inventory is, you may have to factor maintenance into your typical equations. For instance, if you’re selling any kind of a product with moving parts, it may be that there is a shelf-life on basic mobility. For instance, you may have to have maintenance personnel that go through and oils certain parts to keep them from rusting while they’re in storage. There are all sorts of different situations where regular maintenance will keep inventory from going bad.
Make Sensible Warehousing Decisions
Not every company has the ability to store all of its own stock. This is where you have to make decisions about outsourced warehousing. There are plenty of companies that specialize in storing, packing, and even shipping products. It’s up to you to figure out if it makes more sense for you to have your own warehousing and distribution, or whether you want to outsource it to one of these specialist companies. There are almost an infinite number of factors that can go into making this decision, but whatever you eventually decide on can and will have a major impact on your eventual bottom-line financials.