Inventory Management: Better Decisions with Right Data

Inventory Management : Better Decisions with Right Data

Inventory management refers to the handling and controlling of the company’s non-capital assets and the key areas involve ordering, forecasting and storage. The fundamental goal in inventory management is to keep inventory levels balance at all times without having too much or too little in stock.

inventory management

Importance of Inventory Management

A good inventory management solution is key to help companies have a better cash flow and save money. Holding too much inventory ties up a lot of cash and resources while not having enough will mean loss of opportunities. Below are a few key reasons, companies should consider a robust solution to manage the inventory:

Save on Storage Cost

Warehousing cost will cost more if products are being kept for extended period of time. An ideal solution will be to have these products spending less time in the warehouse so that there is a lesser cost of storing them in the warehouse.

Eliminate Dead Stock

Items with expiry dates or perishable items will be spoilt of wasted if too much is being ordered at one single time. Too much stock can also result in products going out of season or style and will no longer be of the same value as it was prior.

Improve Cash Flow

Inventory is essentially cash and purchasing too much can tie up the cash and affect cash flow. Proper management of inventory means that there will be more money left for other areas of the business such as business development and marketing.

Choosing Inventory Management Solution

A robust inventory management solution should be doing all the heavy lifting for a business when it comes to managing their inventory. The solution should track orders through the entire supply chain and allow you to see various parts of the operation in one single solution and manage everything efficiently. Some aspects that an inventory management solution should cover: