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The basis of all commercial companies is the purchase and sale of goods and services; from here comes the importance of inventory management by it. This inventory management by inventory management companies in India will allow the company to maintain control in a timely manner, as well as to know at the end of the accounting period a reliable status of the economic situation of the company.
Companies must have proper control of their inventory. Why? It’s very simple: reliable inventory management implies better decisions, cost reduction, greater profitability, and happier customers.
To realize control and follow-up of the information of inventories it is necessary not to load with excesses or lacking merchandise, and thus to obtain better costs. They represent the set of items that are acquired for resale or use in production. They are found in all organizations: commercial, industrial and even services. Think about the following benefits of managing them correctly.
Avoid dissatisfied customers
It is always advisable to have a security stock that allows you to satisfy your customers without delays and avoid being left out of supply due to a possible unexpected increase in sales. Keep in mind that in the event of a missing event, you will lose the sale and, potentially, the customer.
Neutralize seasonality
The demand for certain products can vary greatly over time: the sale of toys is greater for children’s day, and bookstores have more movement at the beginning of the school period. Analyze the demand for your business and anticipate your changes. Manage your stocks to respond to these fluctuations without losing business opportunities!
Wait calmly for replenishment
The replacement of the merchandise is not immediate, it can depend on many factors (suppliers, distances, type of product). By keeping track of inventories, orders are made taking these delays into account, and inconvenience is minimized.
Get discounts for large purchases
Normally by buying significant lots or large quantities (wholesale), better prices or discounts are achieved for the quantity from suppliers. In addition, the cost of transport is reduced. But always analyze whether this benefit is greater than keeping so much immobilized stock.
Know how much money is in merchandise
Inventory is immobilized capital for a company. Many times, this amount is greater, than the amount allocated to the rest of the daily operations of the organization. It is useful to know this data for the realization of the financial statements, and especially for making decisions.
Offer variety to the customer
Keeping track of stocks allows you to fail your customers, continuously offering all the variety available: sizes, colors, brands, sizes, etc.
Monitor quality
Of more relevance in companies that have, as inputs to produce or merchandise for sale, perishable or expired items, such as in a grocery store. Systematic control of stock allows avoiding that the product reaches the customer if it is not in conditions. For this, you can consult inventory management companies.
Plan shopping money flows Knowing the movements of the inventory, understanding its fluctuations, when orders are made and when they must be paid, lets you know how much money you should have available to meet those costs. The flow of funds needs to be fed with this information.