Note: Running most Fridays in FromGregsHead.com, This is the first in a series of inventory control tips by Jon Schreibfeder. These run Saturday mornings during the BusinessMaker’s Radio Show on FM Newschannel 97.5. Audio files can be found at the PKF Texas Radio/Television page.
How do you achieve Inventory Control? Where do you begin?
First, you have to understand the problem. I’ve worked with distributors throughout the world. These firms have distributed nearly every type of product imaginable. Despite the variety of locations and industries, I’ve found they typically have very similar inventory-related problems:
- They have too much of some products.
- Results in excess inventory and dead stock and leads to decreased turnover and profitability
- They experience stock outs of other products.
- Results in backorders, lost sales and an overall decrease in customer service.
- They don’t know what is in stock.
- They can’t find material in their warehouse.
As a result, many distributors don’t have control of their inventory. So, to get control, you need a plan for effective inventory management.
Stay tuned for future segments on effective inventory management.