The importance of inventory system in business in the Philippines
Inventory management is both an art and a science that involves balancing supply and demand. Your company’s survival depends on it, and this article will give you a bird’s-eye view of how you can master inventory control.
If you order too much inventory, you will end up spending more money than necessary and tying up your cash. Cash is the lifeblood of any business, so making sure you have enough of it at all times is critical. Furthermore, excess stock may not be sold before its shelf life expires, or it may become obsolete, rendering the purchase a total loss.
On the other hand, if you order too few of a product and it sells out, you miss out on potential sales and revenue. Furthermore, you risk upsetting your customers because they rely on you to provide a consistent flow of goods and services. Customers will not be reassured if your explanation for a lack of product is “I’m sorry, I just didn’t buy enough of it to sell you!” This is where reorder points and safety stock come in handy.
While inventory shortages and surpluses are almost unavoidable in any business, those who can best balance the supply and demand equation thrive. The good news is that there are a plethora of resources and software available today to help with inventory management.
By following the advice in this guide and putting it into practice, you’ll learn how to order the right amount of stock for your business and keep your customers happy!If you haven’t guessed, inventory software such as systemSIA can help you run the entire operations side of your business. Think of SystemSIA as your business operating system.
Inventory management is difficult. Executives and managers, no matter how knowledgeable they are with the company’s operations, will be unable to make accurate inventory choices without the assistance of inventory software. It provides them with a viewpoint and information that they would not be able to obtain otherwise.
A company’s finances might suffer as a result of mishandled inventory, whether there is a surplus or a shortage. Customers will be unsatisfied in the end, more expenditures will be incurred, and physical goods will either build up or thin out to the organization’s harm.
- Helps Maintain Par Level
- Automate the Order-to-Delivery Process
- Manage Inventories across Multiple Warehouses
- Helps Maintain FIFO Principle
- Ensure the Best Working Relationship with Suppliers
- Access Real Time date and Inventory Reports