| In the current business scenario where competition has | | | | significance for SMEs in order to avoid delay in |
| intensified in line with multiplying opportunities, there is a | | | | delivery and eliminate problems that come in the way |
| need for SMEs to pay optimum attention to all aspects | | | | of operation and production activity of an organisation," |
| of management to stay ahead in the rat race. Among | | | | said Mukesh Jajoo, proprietor of India Plastic Products, |
| the diverse concepts, inventory management assumes | | | | a small-sized plastic product manufacturer and supplier |
| great importance for small businesses as effective | | | | in Kolkata. |
| storage, stock balance and goods management are | | | | Realising the multiple benefits of following robust |
| vital for these units to ensure timely delivery of | | | | inventory management processes, an increasing |
| products and avoid prestigious deals from getting | | | | number of SMEs in India are adopting management |
| cancelled. | | | | practices that help them to manage their assets and |
| Why is it necessary? | | | | deliver effectively. |
| In a world characterised by fierce competition, it | | | | "Inventory management processes enable an |
| becomes imperative for SMEs to manage their | | | | organisation to enhance its operational efficiency, |
| inventory effectively and take stock of their position | | | | improve customer service and helps in reducing |
| before taking orders. Flawed inventory management | | | | inventory costs," said Anuj Sharma, director of |
| can lead to several problems such as disruption in the | | | | Poonam Transport Services, a Kolkata-based |
| flow of operations, delay in delivering consignments, | | | | small-sized logistics services provider. |
| increased cost and consumer dissatisfaction. | | | | At present, small companies can also choose from a |
| "Delay in supply of goods by SMEs to clients often | | | | series of technological tools, which are specially |
| leads to a broken deal, thereby causing huge loss of | | | | designed to help them effectively manage their stock |
| business for small companies and tarnishes their | | | | of goods. Stock balance management and staff |
| reputation in the market. It is herein, that the concept of | | | | records management are also crucial to help |
| effective inventory management assumes paramount | | | | businesses maintain adequate cash flow. |