Proper inventory management is the key to business success

Make inventory management a priority.

Make inventory management a priority.

Inventory management remains a critical piece to business success. How much inventory you have in stock and whether or not you can meet consumer demand is important, but so is maintaining a healthy inventory level and not biting off more than you can chew, which can result in a sunk cost. Are you scanning in all the inventory that comes in on your material handling equipment? Are you keeping track of its life cycle? These are things to consider as you try to maintain optimal levels.

Business.com says leaders should understand the risks involved in poor inventory management, including labor costs, potential theft and unhappy customers. All of this can affect a business’s bottom line, with the latter having prolonged consequences due to a poor reputation.

The Small Business Chronicle reports one of the biggest reasons for poor inventory management is a lack of planning, which then causes managers to be caught off guard and overwhelmed. Additionally, you could be playing catch-up, as the news provider reports that if you’re not seeing inventory is taking a while to move, you may not have a place to store new products, ultimately affecting your receiving process as well.

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