Every business should make the effort to continually optimize its inventory quantities and keep a healthy supply chain running full speed ahead. This is vital to having a positive balance sheet because having an overabundance or shortage of inventory can be extremely harmful to the financial health of an organization.
This brings us to the idea of inventory management models. They are standardized ways of keeping the right number of items in stock and keeping parts and products flowing smoothly in and out of the warehouse at the right times. So they are quite important to any business that handles inventory.
FINDING THE RIGHT INVENTORY MANAGEMENT MODEL
There are countless ways to manage inventory. This is largely due to different business models and types of goods and services that are sold across the world. No two businesses are exactly the same and so they need to find solutions that are tailored to their specific needs. Given that every business has a unique location, infrastructure, and logistical layout; it can be difficult to find an inventory management model to align your business processes with.
7 QUESTIONS TO ASK ABOUT YOUR BUSINESS
You might begin your journey of finding the perfect inventory management model for your business by asking the following questions about your business. They will help you narrow down some of the ways that you can benefit from using an inventory management solution to help you run your business as efficiently as possible.
- Do you use QuickBooks as your accounting software? If so, does it fully satisfy your company’s inventory management and inventory control needs?
- Do you have a lot of parts, products, or transactions to keep track of?
- How many people does it currently take to manage your inventory and do you expect this number to increase in the near-future as your company experiences growth?
- Do you have multiple location tracking needs across more than one warehouse?
- Would a mobile scanning device be of use to you and your workers in the warehouse?
- Are you a manufacturer or distributor?
- If you are a manufacturer, are there multiple production stages in your manufacturing process?
INVENTORY MANAGEMENT SOFTWARE
The list of questions could go on and on; however, if you answered yes to any of these questions, you most likely could save a lot of money in the long run by investing in inventory management software. This type of software works well with many types of inventory management methods, whether you want to practice Just in Time manufacturing or build to order. Whatever the case may be, it can help you in surprising ways to do more with your current money, personnel, and other resources.
Fishbowl is the #1 requested manufacturing and warehouse management software for QuickBooks users. It is compatible with a wide range of businesses. Users of Fishbowl range from dairy producers to fastener makers, and from military weapon manufacturers to medical companies. To read more about what types of businesses benefit from using Fishbowl, visit the Fishbowl Case Studies page.
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Inventory management models are methods of optimizing the flow of goods in and out of an organization. Every business is unique, and so they need to be flexible with how they approach their inventory management. They should ask themselves a series of questions and then pick the appropriate inventory solution that best fits their needs.