We’ve worked with distributors throughout the world. These firms have distributed nearly every type of product imaginable. Despite the variety of their locations and industries, we’ve found when we start to work with these distributors that they typically have very similar inventory-related problems:

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• They have too much of some products. This excess inventory and dead stock leads to decreased turnover and profitability.

• They experience stockouts of other products. This results in backorders, lost sales, and dissatisfied customers.

• They don’t know what is in stock. The on-hand quantity in their computer system does not agree with what is actually on the shelf in their warehouse.

• They can’t find material in their warehouse. They know the material is “out there somewhere” but they don’t know exactly where it is located.

 

 

As a result, many distributors don’t have control of their inventory. In fact they feel that their inventory is controlling them! If you are in this situation please don’t give up. Achieving effective inventory management does not require a PhD or Herculean efforts. You just need a systematic plan to achieve effective inventory management (EIM). What is EIM? Effective inventory management allows a distributor to meet or exceed customers’ expectations of product availability with the amount of each item that will maximize their company’s net profit or minimize its total inventory investment.

 

Effective inventory management is the result of outstanding inventory control and inventory management. What is the difference between inventory control and inventory management?

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Inventory control is managing the inventory that is already in your warehouse, stockroom, or store. That is:

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• Knowing what products are “out there” and how much you have of each item

• Knowing exactly where each piece of each product is located in your warehouse

• Ensuring that all inventory remains in salable or usable condition

• Storing products to minimize the cost of filling customer orders On the other hand inventory management is determining when to order products, how much to order, and the most effective source of supply for each item in each warehouse.

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That is, ensuring that you have the right quantity of the right item in the right location at the right time. Inventory management includes all of the activities of forecasting and replenishment.

 

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Inventory is a company’s lifeblood and proper management is key to its success.  There’s no reason to trust your Inventory management needs to anyone other than us

 

So, If you yet to consider implementing a WMS system, it is time to start the considering it.  

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Inventory Health Assessment