| Having everything at hand in just the right quantity | | | | will help you track this better. |
| contributes to the smooth running of any production | | | | Establish order cycles: If you can predict demand for |
| process, regardless of whether it takes place in your | | | | your products, then establish a regular ordering pattern. |
| kitchen or on the shop floor. If you've lost all hope of | | | | Remember to consider the costs of preparing an |
| ever exercising control over your inventory, rest | | | | order, the aggregate shipping cost and the economic |
| assured that it's very much within the realms of | | | | order cost while setting up the order cycle. This allows |
| possibility. | | | | you to minimize expenses. Spend some time to |
| Inventory control involves the optimal procurement, | | | | develop a system tailored to your business needs. |
| care and disposition of material required in a | | | | Balance stock levels: Inefficient management of |
| manufacturing or retailing process. The three kinds of | | | | inventory could easily dampen profits. Consider market |
| inventory that are of concern to any business are raw | | | | and budget related issues while determining ideal stock |
| material, work-in-process and finished goods. | | | | levels. Optimizing inventory such that it does not result |
| Why is inventory control important?o Helps maintain | | | | in excessive carrying costs, yet satisfies market |
| stock in line with market demand or sales trends.o | | | | demand, is a fine skill. |
| Reduces carrying and holding costs.o Improves stock | | | | Assess the merchandise: Keeping inventory up to date |
| turnover rates.o Builds your business reputation for | | | | and avoiding obsolete merchandise is another critical |
| always having adequate stock of merchandise in | | | | aspect of good inventory control. Remember, outdated |
| demand. | | | | stock is simply dead capital. This is particularly |
| Controlling inventory is not a difficult job. The following | | | | important with fashion or seasonal merchandise. It is |
| is a 5 step process that will help you bring this potential | | | | better to mark down merchandise that is not moving |
| problem under control. | | | | well, than hold it indefinitely. |
| Plan your inventory: Obviously, inventory control | | | | Follow-up and control the inventory: Take charge of |
| requires you to plan beforehand. Organize the | | | | checking the figures and reviewing the items in your |
| movement of new goods and work-in-process as per | | | | store. This will help you make correct decisions about |
| a well thought out schedule. Ideally, new goods should | | | | the disposal, replacement or discontinuance of different |
| come onto the shelves, just as the last piece is being | | | | elements. Bear in mind that the market demand for |
| sold, but that is neither feasible, nor free of risk. | | | | some products can change suddenly and quick |
| Therefore see to it that you neither hold several | | | | corrections might have to be made. |
| months' stock nor sport empty shelves in your store. | | | | Remember, effective inventory control plays a vital |
| An optimal order quantity minimizes total variable costs | | | | role in the smooth and efficient running of your |
| required to hold inventory. Software Programs like | | | | organization. Inventory control software can help |
| "Premier Manufacturing & Wholesale Edition 2006" | | | | streamline the process further. |