The Merits Of Inventory Management



Inventory management is a discipline which precede the regular and planned course of production and stock of materials.  Inventory management Seeks to maintain inventory at optimal while providing maximum levels of service. It includes aspects like controlling, overseeing of ordering and storage and handling.  It is a very crucial part to the success of any business.  Here are some of the advantages that businesses are likely to enjoy as a result of inventory management.

Inventory balance is the first merit .  Tells you how much stock you need. By this you can prevent stockouts and keep just enough stock on hand.  To add on that , it helps with inventory turnover.  Here it is simple, you only get rid of any slow moving items and obsolete ones that might tie up the working capital.

The likelihood of retaining your customers is enhanced.  Inventory management  guides you on what to store because of the customers demanding the products.  Enhances good planning. This means that you can stay ahead of demand curve to keep the right quantities of items on hand and plan for seasonal changes.

Enhances warehouse organization.   This makes you organize your warehouse on the basis of fast moving goods . Also you can optimize your warehouse setup by placing the products close together in accessible locations. This speeds up picking, packing and shipping.

Furthermore we have employee efficiency.  This makes sure that you make good use of both your workers and technological resources to deliver and drive results.  Inventory managent goes further into inventory tracking. There is coordination of supplies at arch location relying on differences in demand and other factors.  Inventory  tracking let's you know the movement of stock both out steam and in stream .  It is used to track orders, inventory levels among other things in the business.  Helps to cut costs that might make inventory expensive.  By cutting down costs you avoid the slow moving items of inventory , and so you are able to invest your money in some productive way. Click t learn about the rfid inventory management here.

There is time saving resulting from inventory management using simple rfid.  Time saving let's you track the inventories on hand as well as those on order.  Time saving also reduces theong procedures and time for reporting.  As seen at first the role of inventory management is to ensure that current demand and future is met , and so its very resourceful.   Inventory management is therefore very imporatnat in any organization as  it seeks to integrate different departments.   Inventory management should be part of all organizations to ensure that inventory is well kept.

Read more here: https://en.wikipedia.org/wiki/Inventory.

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