The Merits Of Inventory Management
Inventory management is actually controlling, planning and managing all functions of inventory. Inventory management looks at meeting the current and future demands while the sticks are kept at optimum levels. It includes aspects like controlling, overseeing of ordering and storage and handling. It is a very crucial part to the success of any business. Here are some of the advantages that businesses are likely to enjoy as a result of inventory management.
First , there is inventory balance. Helps you determine the amount of stock you require . Here it means that you are enabled to prevent shortages by keeping enough stock on hand. To add on that , it helps with inventory turnover. Here it is simple, you only get rid of any slow moving items and obsolete ones that might tie up the working capital.
The likelihood of retaining your customers is enhanced. You have what customers want and so they come to your store more often because you stock waht is demanded. In addition to that , inventory management is helpful in accurate planning. This means that you can stay ahead of demand curve to keep the right quantities of items on hand and plan for seasonal changes.
Enhances warehouse organization. From this you are able to arrange your warehouse in terms of products that sell fast. Also you can optimize your warehouse setup by placing the products close together in accessible locations. This speeds up picking, packing and shipping.
Enhanced employees throuig training and job descriptions. Since employees are trained on how to use the inventory management software , you are able to utilize the technological and human resources well. Businesses also enjoy inventory tracking. You are able to integrate supplies at every place depending on the variations in demand and other elements. Inventory tracking let’s you know the movement of stock both out steam and in stream . It is used to track orders, inventory levels among other things in the business. Inventory management reduces overall costs of handling and storage. So you are able to cut down on slow moving items and make sure that you pu your money in better use.
Inventory management helps save on time. By saving time it means that you can track all the items on hand plus those on order. To add on that you reduce on long procedures of documenting and reporting. Inventory management is a powerful tool as it seeks to smoothen the operations of a warehouse plus enhance effiency among other things. Inventory management is therefore very imporatnat in any organization as it seeks to integrate different departments. It should be recommended in all organization to ensure proper planing, coordination and other things.