Inventory comprises the physical goods that your company holds at the ready to ship out to your customers. While there's more than one way to manage inventory, a sound strategy is key to business' success.
Use this thread to share your tips for inventory management.
Forbes published this enlightening article about recent trends in inventory levels and the risks that new trends may represent:
Rising Inventories Pose A Threat To Businesses And The Economy
Inspired by the fact that excessive inventory can lead to bankruptcy, the author investigates why inventory levels have been on the rise in recent years. His base conclusion: complacency, fueled by a leveling in the economy, is driving this behavior. He warns, though, that changes in the economy could turn this innocous situation into a read danger.
He presents two strategies to reduce risk:
What process does your company use to set replenishment rules? Do you agree with this advice or have you found another strategy that works better for your company to hold your inventory levels in check?
Business2Community povides a well outlined process for designing an inventory management process in their aptly named article:
How to Design Your Inventory Management Process
You can find all the details through the link above - here's a quick summary of the steps they recommend:
Determine Customer Needs & Forecast Demand
Categorize Your Inventory
Decide on a Method
Figure Out How You’ll Track Incoming/Outgoing Inventory
Conduct Inventory Counts to Ensure Accuracy
What ideas did you find most helpful? Have you used a different set of steps to set up your processes?
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