Explore Four Strategies for Smarter Inventory Control
Because of its value and visibility, inventory is often the focus of cost-cutting efforts and a key measure of company health.
Inventory control is important to every manufacturer and distributor, because every manufacturer and distributor has inventory, often making up a significant investment and considered a key factor in operating strategy.
When companies invest in software systems for distribution management or ERP (Enterprise Resource Planning), the top item on cost justification / return on investment (ROI) analysis is usually inventory reduction.
Does inventory deserve this prominence? Yes, of course it does.
Inventory truly represents a large investment of company cash and therefore should be closely managed.
More importantly, inventory serves a critical operational function, and that is its role as a substitute for time in being able to satisfy customer demand. In distribution, having inventory in a nearby warehouse allows the distributor to deliver goods to the customer very quickly.
In manufacturing, finished goods inventory allows shipment on the same day rather than asking the customer to wait until the item is produced. Raw materials and parts enable the immediate start of production when a make-to-order product is ordered.
This white paper is provided for companies that carry inventory, such as manufacturers, distributors, retailers, and service providers, that want to better manage their inventory availability while reducing ordering and carrying costs. After reading this white paper, you will understand four simple – but proven – strategies for controlling your inventory.