Inventory Management:        The Key to Successful Business Planning
Why inventory management is critical Inventory is one of the biggest assets a company has Effective inventory control ha...
Different businesses need different strategies in order to besuccessfulFirst in First Out- Moving older stock firstLast In...
Tracking key metricsBe informed about yourinventory by keeping track of:   Inventory on hand   Part history   Aging rep...
Inventory not managed effectively results in…                                                           Excessive inventor...
Be accurate with your inventoryAutomate                                                Cycle countAutomation reduces human...
Turn your inventory management into a competitive advantage by…Minimizing your carrying costsMaximizing your order flow...
Cerqa is a global supply chain management companythat can assist you with you inventory management.           Contact us t...
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Inventory management

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Inventory management

  1. 1. Inventory Management: The Key to Successful Business Planning
  2. 2. Why inventory management is critical Inventory is one of the biggest assets a company has Effective inventory control has a direct effect on how successful your business will be Developing effective inventory management strategies can be a huge competitive advantage Not having a balanced inventory can be a costly mistake Effective inventory management leads to: Better inventory balance Higher inventory turnover Accurate planning Cost savings www.cerqa.com
  3. 3. Different businesses need different strategies in order to besuccessfulFirst in First Out- Moving older stock firstLast In First Out- Moving product that is produced last out firstJust in Time- Production process begins when the order is received Balancing the need of product availability with carrying cost is essential for successful inventory management www.cerqa.com
  4. 4. Tracking key metricsBe informed about yourinventory by keeping track of: Inventory on hand Part history Aging reports Initial order fill rate Measures of overstock Cost of backorders www.cerqa.com
  5. 5. Inventory not managed effectively results in… Excessive inventoryBackorders Having too much inventory creates:Unable to fulfill an order when it is Cost associate storage and laborneeded is costly and can result in: Possible waste of parts Ties up cash flow and opportunityExpedited freight chargesPartial shipments TipsCustomer frustration Use an inventory management system that has clear visibility into all aspects of your inventory orderLoss of customers fulfillment Use forecasting to determine purchasing patterns-- purchases that are driven by quantity/price breaks may not be saving you money in the long run Liquidate slow selling and inactive inventory Track lead times, order history and use min/max www.cerqa.com levels to keep an eye on inventory and prevent backorders
  6. 6. Be accurate with your inventoryAutomate Cycle countAutomation reduces human touch and decreases Cycle count on a monthly basisthe potential for human error. Automate through to ensure inventory on hand islabeling parts with barcodes, having bar cording accurate.locations, and using RF scanning devices. Quality Do your quality processes start at the picking floor? Make sure the supply chain management company you are using has quality processes in place. Simples process such as implementing a double verification process can go a long way. www.cerqa.com
  7. 7. Turn your inventory management into a competitive advantage by…Minimizing your carrying costsMaximizing your order flowReducing your wasteIncreasing your visibilityIncreasing customer satisfaction Cerqa provides a complete supply chain management solutionwww.cerqa.com
  8. 8. Cerqa is a global supply chain management companythat can assist you with you inventory management. Contact us today to learn more. sales@cerqa.com (512)439-1281

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