The Benefits Of Inventory Control
Saturday, October 23rd, 2010Any business needs good inventory control. However inventory control is just the start for a productive business. Knowing your stock is obviously an important part of this. Having a good grasp on your stock is vital so you know you’re ordering the right stuff at the right time. All your stock are your assets. And being able to track your assets is the most crucial part of inventory control.
A good stock manager will be able to recite their stock list off by heart. You also need to be sure exactly how long it’s all been sat there. Being able to track your non fixed and fixed assets will help your productivity. Of course you need to understand how quickly your stock is shifting. If you’re on top of this it will help you run a profitable business. From understanding this you’ll always know whether you don’t need to order as much of a certain product. If you have stock sat around not selling it’s taking up valuable room and space for something that is making you money. This probem could be made worose if that stock can expire. On the other hand if you have something that’s selling very well you know you can increase the price.
It’s not just the inventory you need to understand but the fixed assets too. Anything that you don’t actually sell but still helps the business day to day would be a fixed asset. This would include things like any fridges on a shop floor or a till. The easiest way to track these is with fixed asset accounting. Things like the life maintenance costs and the whole life cycle would be tracked with this software. One glance at the fixed asset register will tell you when it’s time to be replaced and the benefits to contributing to the business. If you have to submit to regualr audits this software will help with this too.