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Inventory controlMillions of dollars are wasted on inventory. When you produce too many products and they sit on the shelves, you aren't making money and it is instead costing your business too much money. One method companies use for inventory control is the method implemented by Toyota. This method involves making products ready to order. Basically this means you will carry a very small amount of inventory on your shelves to fulfill the smaller orders that come in.
Products that are made ready to order are actually quite easy to fulfill as you just need to continue running your operations like normal. As you run the company like normal, a product will be produced that day so you aren't getting behind. When a large order comes in, adjust your staff for the order in order to ensure that it goes out on time. Although you may get a lower cost per item to produce more for your inventory, it isn't always a great option if you don't have the sales to sustain the product. When you have inventory, it ties up your cash flow. This causes you to have a harder time paying for other needs of the business. Since you need to wait on customers to buy the products, you will be unable to take care of pressing needs like your payroll and even your taxes. Ordering too much for inventory also leaves you with storage problems. Do you need to add onto a warehouse in order to store the products? If you keep them at your facility, do you actually have enough space to hold large product orders? Implementing an inventory control method is critical to the success of your business. There are several inventory control methods you need to use, here are some that will start saving your business money:
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