Inventory management is a discipline which precede the regular and planned course of production and stock of materials. 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 has quite some impact on the success of any business, be it small or big. There are so many benefits that businesses can enjoy if they perfect inventory management.
First , there is inventory balance. Helps you determine the amount of stock you require . The main purpose here would be to have as much inventory as possible to reduce problems related to shortages in the long run. You are likely to benefit from higher inventory turnover ratios. High turnover ratios ensures that you remove obsolete stock and there is no sucking up of 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. Enhances good planning. Very helpful in capacity planning so that you remain a head of the demand curve , also ensures that you have taken care of seasonal changes.
Inventory management ensures that the storehouse is well arranged , designed and organized. This makes you organize your warehouse on the basis of fast moving goods . With warehouse organization you can ensure that products are kept in avery accessible location. Once the warehouse is well organized picking, packing and shipping becomes esay. Click for more details.
Improved employee effiency in terms of service delivery. Since employees are trained on how to use the inventory management software , you are able to utilize the technological and human resources well. You track your inventories as well. 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 . Tracking is very wide as it encompasses other things like orders, inventory levels. Inventory management reduces overall costs of handling and storage. By cutting down costs you eliminate the slow moving goods and have that opportunity of putting your money in productive use.
There is time saving resulting from inventory management such as the use of the rfid inventory management. You can track all items on order as well as those on hand. With time saving it is easy to do documenting, reporting among other tasks. Inventory management is a powerful tool as it seeks to smoothen the operations of a warehouse plus enhance effiency among other things. Also let’s departments cooperate and operate independently towards inventories. To do all these aspects such as planning , controlling and tracking there is need for inventory management in any organization.
Read more here: https://en.wikipedia.org/wiki/Inventory.