As the world is awaiting a vaccine to immunize human beings to the ravages of the Coronavirus, business, all over, is searching for ways to immunize itself to the adverse effects that the economic slowdown, and lockdowns are bringing about. Under the circumstances, just as E-commerce has been hailed as a kind of vaccine to the economic slowdown, an Inventory Management System is being looked upon as something that can immunize your business to adverse times – yes; lockdowns, social distancing, etcetera, included.
Let us take a quick look at some of the many ways in which you can gain from having an Inventory Management System in place.
The basic idea of Inventory Management is to enhance the operation of business through the efficient, improved flow of goods, as well as services. It is the process of controlling business stock, or products, in accordance with the demand for them that exists at a certain point of time.
Inventory Management is crucial for
- Service Enhancement
- Reduction of Inventory Carrying Expenditure through Reduction of Inventory
- Improvement of Product Quality
- Flexibility of Operations through Pull Systems
- Enhancement of Competitive Ability
Inventory Management is vital for the development of a successful management, as it presents strategies and actions that get integrated into management planning, controlling, and processes.
The focus that a business Inventory demands can be provided through the system of Inventory Management, and control. This process often involves cash flow that is associated with the purchase, and sale of stock – the reason why Inventory Management and control has the potential of having a very considerable effect on business finance.
Inventory Management and Planning can Reduce Cost of Storage
Maintaining adequate Inventory can help in the reduction of storage costs.
Better Utilization of Warehouse Space
Warehouse space can be utilized better when it holds no item that is not required, non-productive, obsolete, damaged, and such.
Inventory Management involves accounting for
of all goods, as per the demand of the customers. Better Space Management can be arrived at through Inventory Management.
A warehouse that is not organized well can cause difficulty in the effective handling of the Inventory.
Many businesses keep those products that have a higher level of demand in the market, together, and in easily accessible areas, in the warehouse. This step enables them to keep customers satisfied through speedy order-supply.
Service Level can Improve through Inventory Management
Every business desires – and works towards – retaining, as well as attracting clients. A good, and improved service level can assure that. Inventory Management can enable service level to improve by helping the business to fulfill the expectations, demands and requests of customers as early as possible. Inventory Management System aids a business to be ready with the hands-on service the moment it is required by, or for, a customer.
Cost Accounting Activities can get Easier with Inventory Management
Business owners often come up with various measures, and internal strategies, so that a greater planning, and control related to production and sales can be guaranteed. This kind of an approach can necessitate every partaker in the enterprise to execute activities that can render Accounting easier.
Such strategies are often associated with
- Control of obsolete goods
- Maintenance of Inventory flow
- Accounting for Inventory Value
and so on.
Your business can manage its cash flow with ease with improved Inventory Management, keeping the financial controller happy.
Companies that have well thought-out strategies can save a big amount from active Cost Accounting Activities. Improved cash flow can translate into improved attainment of organizational, and business goals.
More Effective Utilization of Manpower and Equipment
When the Inventory is efficiently managed, you can make better use of your manpower, and equipment. This helps your business to function smoother, keeping clients, customers, and your income happier. Productivity increases. On the basis of Inventory movement, you can be sure of having enough on-demand products ready at hand.
Prevention of Expensive Interruption in Operation
Your business can avoid ‘hidden costs issues’ with proper Inventory Management. When you keep proper track of the products that you have, there can hardly be any scope for thefts, or disruption of operation. This, in turn, enhances business profitability.
Better Safety with better Inventory Management
If a warehouse has excessive Inventory, it can be hazardous for the people working there.
There can be dust and germs collection, insufficient space to walk on, things falling off overloaded shelves, people finding it difficult to carry goods in and out, and so on.
Efficient Inventory Management can lead to
- Reduction of Clutter
- Reduction in Packaging
- Reduction in Wastage
All these factors can lead to a safer, healthier environment.
A safer, healthier environment is what the world needs – especially now. Alongside, the world needs a better Economy. Inventory Management can be instrumental in bringing about both of these, and more benefits.
In case you want to know how an Inventory Management System can benefit your business, particularly, you are most welcome to consult us on the matter – completely free of charge. You can also speak to us regarding any doubts, questions, or even ideas that you have been harboring regarding Inventory Management System.
You are welcome to approach us for fully customized solutions, too.