Management of inventory is nothing but flow of goods in and out of the organisation. Any organisation may have one essential management method or have array of procedures. There are some methods that we propose to you for effective inventory management which when executed have proved useful both in time and in money.
These methods are :
1. A method to manage inventory is to seek the supplier's help. Supplier-managed inventory provides the vendor access to the inventory data of distributors. Based on the distributor's requirements, the supplier generates purchase orders. In an effort to eliminate data-entry errors and to manage the inventory order's timing, distribution-intensive firms use inventory controls managed by vendors.
2. One needs to cut back on inventory that doesn't sell because high inventory levels is an expense and increases overhead costs. Another important measure is to identify your business' inventory demands.
3. Keep an inventory control expert dedicatedly for your business. Such experts
manage all items which are in hand and also in transit. The expert's key responsibilities include executing adjustments, managing returns, executing inventory reporting strategies and validating received merchandise.
4. Another effective way is to track how much time it takes to refill inventory as suppliers deliver products at different times after an order is placed. The tracking is effectively performed by creating reports. The time taken to reorder inventory is called the lead time and thus the reports produced are called lead time reports.
5. An effective method is to measure the inventory delivery turnaround time and inventory turnover. Both processes include measuring how often inventory sells and how much time it takes to deliver it at the customer's place.
Boundless helps businesses with all methods above which further help them in generating invoices, purchase orders, receipts and even in inventory-related accounting. For more on inventory management, call us at +91-11-66797769 or e-mail at email@example.com or visit us at http://www.boundlessindia.com.