Inventory is a necessary element to any business. However, no one ever wants to see a box of merchandise start to collect dust because it indicates a sign of inefficiency. People have a tendency to buy in bulk or to over buy. Being mindful of your inventory is important for many reasons. The right inventory allows you to react quickly to customer demand and the right inventory, inventory that constantly moves, will not tie up precious cash flow. In the June 2013 edition of NFIB MyBusiness there is an article that discusses inventory’s hidden cost and how it hurts business. In the article, it discusses how there is a constant struggle to manage and maintain the right inventory at all times.
Embracing a lean business model and utilizing software designed for the lean enterprise will help any business maintain a constant flow of the right inventory. A lean system will stop over buying therefore increasing cash flow and negating the risk of “being stuck” with dead or obsolete product. Going lean will certainly have a fast ROI. During the software vetting process it is important to understand how exact your inventory will become, therefore increasing cash flow and producing immediate ROI.
Being perceptive to knowing how your inventory moves, when to buy, and what to invest in are key factors that help business grow and thrive.
Written by: Ascent’s Co-Founder and President Shaun McInerney