To keep things simple; inventory management is the management of inventory and stock. If your inventory is managed properly it will mean you always have the correct levels of stock on hand. This has a lot of benefits for your business. For some, this is easier said than done. However, having the right inventory at ALL times is a crucial component for your business.
Here are a few basics that help explain inventory management a little further:
Inventory 101:
If you are a business that sells or makes products, chances are pretty good that your inventory supply is the most important thing for your business. Sound like you? Your business depends on your inventory. Inventory is all the parts and products you have on hand at any given time. These could be for making goods, or actual products that you sell. The most important thing about inventory is having the right parts at the right time. Think of what would happen if you did not.
Now imagine a world where your inventory was always right, and you never ran out of parts. Sounds pretty good right? That’s where inventory management comes into play.
Click here to read 7 benefits to Vendor Managed Inventory.
How Inventory Management Works:
Since you probably already have a basic understanding of inventory, we kept that part simple. You’re busy running a business, we get it. Want to simplify your tasks even more? That’s where inventory management comes in. Think of it like an extra employee, make that several extra employees. Inventory management simplifies your many business tasks. Lots of purchase orders? Too many vendors to deal with? Running out of stock and having to shut down your manufacturing lines?
These are all common complaints that we hear too often. Inventory management simplifies these headaches. Less paperwork. Less phone calls. Less shutdowns. All of these add up, and they add up to a few great things. More business. More customers. More money for your business.
Best Practices and Tools:
Now that you know a little more about inventory management, and you’re still reading this article…lets explain it a little further. Basically, how exactly we can make your inventory needs simpler. To prevent unnecessary hang-ups like line manufacturing line shut-downs, low stock, too much stock, or a multitude of other inventory related factors that keeps your business from running smoothly, you need inventory management. Your team needs automation. You need access to real time data that show exactly what is happening with all of your stock. Finding the right inventory management provider, like Austin Hardware® helps your business accomplish your many goals.
Interested in ABLE II™ VMI? Click Here to Learn More.