10 Goals & Objectives Of Inventory Management

June 20, 2022
10 positive results of using better inventory management, Fishbowl Blog

What are the goals of good inventory management? Inventory management helps businesses be successful.1 That is as much of an understatement as saying the sun’s surface is warm. Of course inventory management is a crucial part of any business’ success! There is no denying that fact. After all, it is how you obtain the goods you need to fulfill orders and keep your customers happy.

With smart inventory management, your business will enjoy many benefits. The following are the top 10 positive results of good inventory management:

1. Achieve Good Inventory Balance

Good inventory management helps you figure out exactly how much inventory you need. This makes it easier to prevent product shortages and keep just enough inventory on hand without having too much. As a result, you will have two main benefits. First, your carrying costs will go down. Second, you can plan ahead for seasonal changes in demand. So you will always have an excellent inventory balance.

2. Improve Inventory Turnover

You need to keep a high inventory turnover ratio. Why? Because it ensures your products aren’t spoiling, becoming obsolete, or sucking up your working capital. Calculate how many times your inventory sells in a year. Then you can see where you can make better use of your resources. For example, you may discover slow-selling goods. On the other hand,