A company’s TraceTM is a complete list of merchandise or stock or raw materials. Managing the inventory and controlling it involves balancing all its needs and requirements for cost minimization. Inventories are kept ensure that the company’s operations are running. It also helps in meeting the demands of the company. Many companies face a problem of controlling their inventory.Inventory problems can be controlled through cycle counting. In this, a company shuts down or closes for some time to do physical counting of everything.
The following are inventory diseases and how they can be cured:
Cash flow hiccups
This is a situation where your inventory runs low. Your payments keeps on accumulating debts and at this, you cannot reward yourself for hardwork.On the other side, you cannot afford to invest hence a problem in upholding your stock which can in turn lead to lost sales opportunities.
- In curing this inventory disease, account for every money spent.
- Carry an assessment that is thorough for your business financials
- Make a list of your monthly operating costs.
- Elimination of unnecessary expenses.
Negotiation for better terms when buying from a single supplier becomes really hard, since your business relies on a sole trader daily. In a situation of multiple suppliers, trouble emerges in managing payments while losing the benefits.
Renegotiation with your supplier over your contract to achieve better terms. If that is not possible, stick to 1 or 2 main suppliers while you look out for promotions and deals which are special.
The impulse buy syndrome
This is a situation where sales representatives’ pitches on your new brands. This profit may feel right for you since it will result into your profit margin expansion and also selling at a discount to your customers.
The impulse buy syndrome is cured through, placing an order and examining whether the product is seasonal.
On wholesale purchase, always consider the price you are paying.
The best seller’s amnesia
It becomes difficult when you con not recognize the product that brings more cash. The sales figures will help you to identify the product you need to stop selling.
You need a reliable inventory management system. Inventory software will give you an instant current stock check. Also, you need to create promotional offers.
This is an inventory disease where you buy big amounts of products like big box retailers and chain stores.
To cure this disease, you need to boost your competitiveness through provision of steerer customer care. Always keep up with the latest trends as pertaining to your company.
The tendency of large companies worrying on clearly defined territories, procedures and systems for equality is a greater thing. The following are poisons of large companies:
Losing touch with your customers: A company tends to scale up because its customers like it or possibly like their products. As many companies grow, they lose interest on the existing customers and are swamped by their demands. To eliminate this, you need to set systems for growth sustention of customers.
- Lack of engagement to people and careless spending of money.
- Getting bogged to technical legacy.
- Environmental burden.
In conclusion, identification of harmful behaviors and correcting them is key for your company success.