Why is Inventory Management Important?
You may have often wondered why you even have any inventory at all. Is it not just simpler to ask a supplier to send you products as and when you have some demand for them? The issue, however, lies in the fact that we never know for sure what a customer’s spending pattern is.
For example, it is possible that your manufacturer cannot keep up when your demand peaks. Or your vendor may increase the price of a product you agreed to sell for way lesser.
Having your own inventory helps hedge against the great uncertainty that is consumer behavior. When you buy in bulk, you also have an advantage when it comes to price negotiations. Moreover, you can significantly reduce the time between order and delivery by having your own stock.
Our Three Step Process
1. Inventory Plan Assessment
There is no hard and fast rule for what inventory plan a company should use. There are many types, and it could be tricky to know which one to use. That’s why we access your business and determine if a periodic or continuous inventory review is ideal for your company.
2. Inventory Plan Implementation
When we have successfully picked an inventory management plan, the next step is to implement it. We apply a counting program that considers counting management, strategy, and frequency for keeping better tabs in the inventory.
3. Inventory Management and Analysis
The management and analysis of inventory records are important to a business because it contains vital information. And this information can be used to increase sales and better the company. With the analyzed information obtained from inventory records, a company can better strategize for the next quarter or year. To manage the inventory necessities of a company properly, the owner should know how seasonality affects inventory turns and control. The company owner should also know how customer needs to influence stock inventory, including how to manage and fund inventory costs. Action Electronics has years of skills in the inventories of companies from across the globe.
Our mission is to maximize turns and install profits. Let us handle your business’ inventory management today!