Inventory is a very important part of any business. Without inventory, business simply does not happen. There is nothing to be sold, nothing to be processed, nothing to be offered. As such inventory management is also a very important part of any business. After all, all that stock needs to be carefully monitored somehow.
Why is stock management needed?
Ultimately stock management is very much a balancing act. If you have too little stock, then your sales will suffer as you cannot meet demand and customers are faced with products constantly going out of stock. Too much inventory, however, and you will need to dedicate extra storage space, extra transportation, extra management and extra cash. This makes both options a serious loss to your annual budget. And of course it’s not just that that you need to keep an eye on. Your inventory management will also involve a lot of tracking your inventory as it makes it way to various distribution sites, making sure it’s going exactly where it needs to be going.
In general when considering the management of your stock you need to recognise that there is no such thing as a one-size-fits-all strategy with regards to inventory management. What works for one business may not necessarily work for yours. This is simply a result of the widely varying types of stock, suppliers and consumers that individual companies will use. Therefore when you start to plan your inventory management always try to tailor it towards your company specifically.
To that end, know your stock. Know what it is, how it must be stored, how quickly it can be moved off the shelves and how long you can keep it on there before it becomes unsellable.
Keeping up with orders
You should also know and keep track of your suppliers. If they are sloppy with their delivery time, or do not always deliver everything that you have ordered, then you have a serious problem with them. Do not feel obligated to stick with suppliers if they consistently fail to keep up their side of the arrangement. Late or incomplete delivers means more work for you and your business, and can lose you money.
Another option to optimise your inventory management is to hire a consultant to take the majority of the logistics onto their shoulders. Trained logistics consultants are a good way to cut the hassle of stock administration in half, leaving your company free to focus on other details. Of course this comes with a loss of finer control over your own stock, but it’s nearly always the case that consultants will never undertake decisions without your approval. In most cases, they simply provide experienced advice and warnings.
Hillman consulting are one such company who can help your business to fully take advantage of your warehouse space. For more information about inventory management, visit the website of Hillman Consulting here, or if you want specific information, view the inventory management page here.. You can also phone them directly by calling 01926 430 883.