Main Business Goals and Objectives of Inventory Management Effective inventory management is a cornerstone of successful business operations. It helps reduce excess stock while ensuring you have enough products available to meet customer demand. Well-planned inventory management organizes ordering processes, minimizes time wasted on manual tasks, and aligns inventory levels with business goals. Key Objectives … Read more
How to Improve Your Inventory Management How to Improve Inventory Management: Effective inventory management is crucial for optimizing your supply chain and driving organizational efficiency. Supply chain and inventory managers must continuously seek improvements to their systems to stay competitive. Large retailers invest millions annually in upgrading their inventory management systems, resulting in enhanced operational … Read more
Why Low Inventory Levels Matter Holding too much inventory ties up cash, increases storage costs, and raises the risk of obsolescence. Keeping inventory levels low frees up working capital, reduces waste, and improves your profit margin while still meeting customer demand. Calculate Your Daily Inventory Cost Understanding how much inventory you actually use each day … Read more
Why Keeping the Right Inventory Level Matters Holding too much stock ties up capital, increases the risk of obsolescence, and raises storage costs. Holding too little stock, on the other hand, can lead to stock‑outs, missed sales, and dissatisfied customers. The sweet spot is found by matching your inventory level to your inventory lead time … Read more
What is Inventory Shrinkage? Inventory shrinkage
Understanding Work in Process Inventory Work in Process (WIP) Inventory: In manufacturing, there are always partially finished products in inventory. These are products waiting to be completed at various stages of production. Such scenarios are common and can arise from different operational circumstances. Common Causes of Work in Process Inventory Material Shortages: Running out of … Read more
What is ABC Inventory Management? ABC Inventory Management, also called Selective Inventory Control, classifies stock into three groups – A, B, and C – based on their monetary impact. A‑items represent the most valuable 15‑20% of SKUs but account for about 80% of total inventory value. B‑items are moderate‑value items (30‑35% of SKUs, ~15% of value). … Read more