- May 05, 2022
Having inventory control is a core part of the operation of a company and contributes significantly to the generation of profits.
Efficient inventory management provides multiple benefits for any company.
Here are a few:
- Raises the level of customer service, reducing lost sales due to lack of merchandise and generating greater loyalty to the company.
- Improves the company’s cash flow by purchasing more efficiently and having a higher inventory turnover. This will help ensure that the money is not “stagnant” in storage, but will be “working”.
- Reduces freight costs through better planning and reduction of emergency purchases.
- Recognizes and prevents theft and waste.
To carry out stricter and optimal control of inventories, it is essential to have a defined policy that serves as a guide.
The objective of this practice is to have an orientation of how inventories should be constituted. For example:
• Level of a finished product, which must always exist.
• Cash level, which must be in inventory.
• Correct classification of each type of merchandise and its rotation.
• Time to place orders.
• Audits and periodic reviews.
To achieve effective inventory control, it is important to have a tool that helps you do it efficiently.
Similarly, within the company, it is important to establish the best practices when planning and executing processes; above all, there is constant monitoring and reviewing of policies that allow improvement.
By making these adjustments, the alignment of a response team will be achieved and communication between areas will improve, which will keep the guidelines stipulated for continuous improvement in inventory management.
