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Advantages Of Inventory Management

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By Author: Mark Ventory
Total Articles: 13
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Inventory is crucial part of every industry whether it is healthcare, manufacturing or retail. This is why it is significant to maintain a balance inventory. Under inventory means lack of materials or supplies that a company needs to finish a product. When this happens, your customers can turn to other suppliers and manufacturers that are able to meet their demands. In short, this leads to greater loss in terms of sales and loss of your present clients.

On the other hand, over inventory is also not good for the business. When there are too many stocks that are not yet needed, you invest on ‘sleeping stocks’ that are not yet convertible into cash. That means, your money lies on the supplies instead of rolling them to the operation. It indicates poor forecasting, over stocks, expiration of some consumables, and loss of profit.

While under and over stocks are not good, sustaining a balance supplies indicate that there are raw materials for producing your product and there are finished products to offer your customers. When there is proper accounting of your stocks, it records the right tax, financial, ordering ...
... and delivering of your goods. Keeping a balance counting of your stocks is important in lowering expenses and providing a streamlined operation.

There are various ways on how Inventory Management system helps the operation. Here are some of them:

1. Report generation. When there is advanced software in place instead of the manual counting and entry, managers will be able to come up with any kind of report from invoices, purchase orders to account statements. Purchase managers can also order through the system automatically when the stock levels of their products become low.

2. Efficiency and speed. When there is computerized system of monitoring supplies, work becomes easier and faster. Everything is done automatically that cuts back time needed for manual counting, encoding and computation.

3. Up-to-date results. When Inventory Software is in place, a business can generate accurate results such as counting of merchandise, how many goods were left and sold and how many to order. Everything can be determined in a snap compared to manual entry that only provides right results during the time of counting.

4. Balance supply and demand. Meeting adequate supply of products is critical to customer service and generating revenues. Good Inventory Control Software identifies sales trends that would enable companies to prepare for their customer’s requirements.

5. Provides accurate lead time. Management of stocks through advanced methods provides accurate lead time for products. When there is a need for a particular product that takes longer time to deliver, the manager would be able to adjust the lead time to make it available in the right day.

These are just some of the advantages that advanced system of tracking stocks can do to your business. So if you want to streamline your operation and lower down your operational costs, try the method. It’s worth investing, faster and reliable.

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