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Inventory is the heart of any company that markets tangible products regardless of size. Maintaining a stock that allows you to fulfil all customer orders in a timely manner is essential to achieve the sales goals of the company, remember that the latter is basically the source of support for it.
Inventory management firm can become a great ally to increase the profitability of the organization, however; only some of the businesses worry about investing resources that optimize and improve the conditions of the stock and end up making mistakes that undoubtedly generate various effects on the company. Some common examples are:
Excess inventories: One of the most frequent mistakes made by some companies is to maintain a warehouse full of products to “secure sales.” However, this is a strategy that induces lack of control, affects liquidity, increases the likelihood of being depleted and decreases quality especially in those perishable products.
Lack of records and information: When there is no record and history of the inventory, the serious mistake of improvising is made. Ideally, purchases should be supported with information that details the flow of each product, such as store inputs and outputs.
Insufficient inventories: A company whose inventory does not have the capacity to meet customer demand generates poor service quality, lower sales and increases the likelihood that customers will go to competitors looking to meet their needs.
Loss of raw material: When excessive supplies are made without estimating a sales projection, there is a risk that the products will expire, lose quality, thus breaching the client’s expectations or, in the worst case, they will not be sold.
Robberies: When there is no inventory control, employees may be tempted to influence robberies, increasing costs and decreasing business profitability.
Disorder: Can you imagine offering a product to the customer without knowing the quantity of pieces available in stock? When there is no control in the inventory, such situations occur without a doubt affect both the usefulness of the business and the perception that customers have of the company to not meet their expectations.
How to increase the utility of your company with inventory control
Everything that allows you to save and control each of your company’s assets helps you to be more productive and generate greater utility. Inventory management companies in India say that when a company has a synchronized and fair inventory for sales that are estimated to have, it is much more productive, does not waste resources and does not suffer from problems such as having an inventory full of products with low turnover and lack of money to resupply those who do rotate; leaving behind the old theory that companies with overflowing inventories are the most productive and successful.