Inventory management is a discipline which precede the regular and planned course of production and stock of materials. It seeks to provide sufficient supplies while the levels are kept optimum. It includes aspects like controlling, overseeing of ordering and storage and handling. It is a very crucial part to the success of any business. The following are tgr benefits that are brought about by proper inventory management.
Inventory balance is the first merit . This is where you are able to figure OT exactly how much inventory you need . The main purpose here would be to have as much inventory as possible to reduce problems related to shortages in the long run. Inventory Management results into higher inventory turnover. This ensures that your products are not spoiling, becoming obsolete or there is tiring up of working capital.
Another benefit as a result of inventory management is you retain your customers. Inventory management guides you on what to store because of the customers demanding the products. Enhances good planning. Very helpful in capacity planning so that you remain a head of the demand curve , also ensures that you have taken care of seasonal changes.
Inventory management ensures that the storehouse is well arranged , designed and organized. With this you are enabled to organize your warehouse in terms of fast moving items. With warehouse organization you can ensure that products are kept in avery accessible location. This speeds up picking, packing and shipping.
Enhanced employees throuig training and job descriptions. This makes sure that you are making great use of both technological and human resources. Inventory managent goes further into inventory tracking. Here you are enabled to coordinate supplies at various locations because there are differences in demand . Inventory tracking plays a great role in inbound and outbound movement of items. Tracking also involves monitoring of orders, inventory levels etc. As if that is not enough we have cost cutting. So you are able to cut down on slow moving items and make sure that you pu your money in better use.
Inventory management helps save on time. You can track all items on order as well as those on hand. To add on that you reduce on long procedures of documenting and reporting. Inventory management is very useful for any business so as to reduce all costs, plan and enhance effiecincy in the warehouse. Inventory management is therefore very imporatnat in any organization as it seeks to integrate different departments. Inventory management should be part of all organizations to ensure that inventory is well kept.