{"id":302,"date":"2020-10-10T04:36:53","date_gmt":"2020-10-10T04:36:53","guid":{"rendered":"https:\/\/www.cac.net.in\/blog\/?p=302"},"modified":"2024-10-11T16:42:58","modified_gmt":"2024-10-11T11:12:58","slug":"how-do-you-determine-your-inventory-availability-level","status":"publish","type":"post","link":"https:\/\/www.cac.net.in\/blog\/how-do-you-determine-your-inventory-availability-level\/","title":{"rendered":"How Do You Determine Your Inventory Availability Level?"},"content":{"rendered":"\n<p>Inventory management is a complex system of interconnected\ntasks and processes. Regardless of what your business sells, the products are\nlikely stored in one or more locations as inventory. <\/p>\n\n\n\n<p>An<strong> <a href=\"https:\/\/www.cac.net.in\/inventory-management\">inventory management company<\/a> <\/strong>is important for your company, regardless of whether it is (just) a stack of cardboard boxes or warehouses with parts and materials strategically located around the world. Before you can sell your inventory, you need to take it in and also manage it.<\/p>\n\n\n\n<p>Inventory management starts at your company&#8217;s main warehouse, but every element in the supply chain can affect inventory management. Inventory management is a top priority for any business that sells goods.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/scontent.fdel1-4.fna.fbcdn.net\/v\/t1.0-9\/119445295_650670049207707_363115780989047059_n.jpg?_nc_cat=102&amp;_nc_sid=730e14&amp;_nc_ohc=aSYE3yV-tNMAX_vn8NE&amp;_nc_ht=scontent.fdel1-4.fna&amp;oh=4c44984111489a33820582c3c35ac2c1&amp;oe=5FA8E1F8\" alt=\"\"\/><\/figure>\n\n\n\n<p>\u201cInventory\u201d means the finished goods, work in progress, and\nraw materials of what your company is selling or planning to sell. So the\ndefinition is pretty clear. While inventory management is a complex task, which\nincludes the following elements:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Inventory visibility and assessment<\/li><li>Lead times to replenish raw materials and\nfinished products<\/li><li>Returns of defective goods and materials<\/li><li>Management of the available physical space<\/li><li>Management of order, shipping, processing and\ntransport costs<\/li><li>Forecasting future prices, inventory levels and demand<\/li><\/ul>\n\n\n\n<p>Inventories have been around for thousands of years, since\nhumans have traded with one another. The digit zero was invented in India in\nthe fifth century as a placeholder for bookkeeping and inventory. The counting\nsystem for inventory management is at least 5,000 years old.<\/p>\n\n\n\n<p>The main goal of inventory is to provide accurate,\ncomprehensive, and up-to-date information on the location and status of every\nmajor item in your inventory. <\/p>\n\n\n\n<p>A secondary, but equally important, goal is to identify\nmissing or non-functioning inventory and to replace or repair it as quickly and\neconomically as possible.<\/p>\n\n\n\n<p>Do you have enough stock to meet the demand? Or are you\nholding too much stock? How do you know if your targeted service level meets\nyour company&#8217;s expectations while keeping your stock investment under control?<\/p>\n\n\n\n<p>Availability is the lifeblood of the company for most\ncompanies. However, while business departments in the business world expect\n100% availability, inventory management firms know this is not a useful goal. <\/p>\n\n\n\n<p>Considering the obsolescence and the cost of holding in\nstock, holding excess stock can have a very negative effect on profit margins\nand put the working capital in a difficult position.<\/p>\n\n\n\n<p>For many companies, the criteria for determining service levels are often unclear, although the service level target is set on the basis of a rapid and uncertain analysis by the <strong><a href=\"https:\/\/www.cac.net.in\/business-advisory\">business advisory firms<\/a>.<\/strong><\/p>\n\n\n\n<p>Also, it is always difficult to measure service level\nquality, as it can only be observed after a certain period of time. Often when\na service level that is not correctly determined has a negative impact on the\nsafety stock, service levels are reviewed and adjusted quickly without real\nanalysis.<\/p>\n\n\n\n<p>For this reason, service levels are not regularly reviewed.\nShould this situation worry you? Yes, if you think your service level has the\npotential to affect both your profit margin and overall business performance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Inventory management is a complex system of interconnected tasks and processes. Regardless of what your business sells, the products are likely stored in one or more locations as inventory. An inventory management company is important for your company, regardless of whether it is (just) a stack of cardboard boxes or warehouses with parts and materials&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[49,97,50,47,45,6,48,37],"class_list":["post-302","post","type-post","status-publish","format-standard","hentry","category-inventory-management","tag-business-advisory-companies","tag-business-advisory-companies-in-indi","tag-business-advisory-group-in-india","tag-business-advisory-services","tag-business-advisory-services-india","tag-inventory-management-for-small-business","tag-small-business-advisory-services","tag-warehouse-inventory-management-system"],"_links":{"self":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/302","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/comments?post=302"}],"version-history":[{"count":1,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/302\/revisions"}],"predecessor-version":[{"id":303,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/302\/revisions\/303"}],"wp:attachment":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/media?parent=302"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/categories?post=302"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/tags?post=302"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}