As part of your business process management, inventory management sounds like a simple enough concept… you reorder inventory before you run out. But the actual practice is more complicated than it sounds.
Inventory can be a company’s biggest asset, and thus, the biggest asset expense. Poorly managed, and a company can go out of business. Inventory ties up a lot of cash so you need to optimize the expense by carrying enough to satisfy demand, but not so much that your investment sits, potentially becoming stale, outdated or obsolete.
Let’s look at five ways to improve your inventory management so that you can balance your needs and find that sweet spot that’s perfect for your organization. (more…)