subject: Three Key Aspects Of Inventory Management [print this page] One thing that every business must do is keep an inventory of all the stock they have on hand. Inventory management is often a big job, but if not done properly can bring a business to its knees. How? Unless you keep the inventory up to date you stand to run out of supplies that are essential for efficient production. There are three key aspects of good inventory keeping.
Firstly, you need to work out how long it is going to take your supplier to process the stock you ordered and deliver it to you. Of course, this includes the time in transit. If this factor is not fully understood, it is highly likely that goods will not be ordered in time and there will be a shortfall. This means that your own work cannot go ahead until your supplies arrive and so your own customers will be kept waiting.
Secondly, you also need to know just how long it will take your company to use up the supplies that they have. Unless you know when stock will run out, you wont know when to order new stock. While you dont want stock to be sitting there in the warehouse for months on end waiting to be used, neither do you want to run out just when you need it.
Logistics management can only be done professionally and efficiently if those first two points are properly understood. Once it is, you will be able to ensure that the third component is in place; that there is enough buffer stock in place to prevent running out without there being too much at once. This is especially important when the stock is perishable. If you have too much and it spoils then you have wasted money.
Supply chain consulting is the way to find out the first point made. You need to consult with companies that supply you with everything you need and find out just how long it will take them to fulfil your orders. In addition, the goods you receive must be tracked properly to find out just where they are in the operation process. This is all part of knowing how long before the product will need replacing.
Once you get the hang of properly recording and managing the inventory, your business will be all the more efficient and your customers will be kept happy. Your company will get a good reputation for service and your bottom line will be very healthy.
