{"id":350,"date":"2020-12-07T08:40:08","date_gmt":"2020-12-07T08:40:08","guid":{"rendered":"https:\/\/www.cac.net.in\/blog\/?p=350"},"modified":"2021-01-11T06:21:09","modified_gmt":"2021-01-11T06:21:09","slug":"improve-the-health-of-your-company-by-controlling-inventory","status":"publish","type":"post","link":"https:\/\/www.cac.net.in\/blog\/improve-the-health-of-your-company-by-controlling-inventory\/","title":{"rendered":"Improve the health of your company by controlling inventory"},"content":{"rendered":"\n

Optimal inventory management involves controlling\nmerchandise from when stock levels require replenishment, until it is delivered\nto the customer. <\/p>\n\n\n\n

And this happens through orders to suppliers, reception,\ncontrol and storage, etc. For many types of businesses, stock control is key to\ntheir success. It is part of the supply chain.<\/p>\n\n\n\n

Inventory management is a key area in the management of many micro and SMEs. It is an activity included, in some cases, as part of cost accounting.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

We define it, in simple terms, as proper management of item\nregistration and control. It includes operations such as purchase planning,\nmonitoring and control of outputs.<\/p>\n\n\n\n

What can happen if inventory management is not appropriate?\nIt can lead to production interruptions or sales failures, which should be\navoided as much as possible. <\/p>\n\n\n\n

Situations like these don’t just have measurable costs.\nThere are also, perhaps more impactful and not so easy to measure, such as loss\nof customer trust.<\/p>\n\n\n\n

Inventory management is essential, as the existence of\nirregularities in stock control will have an impact on the supply chain. Out of\nstock communicates a negative image. It is losing the trust of that client, in\nwhom you have put so much effort. <\/p>\n\n\n\n

And the worst thing is to open the opportunity to your competition. Depending on the case, it is not losing one sale but losing many. A high percentage of your customers, most likely, will not return, and this is why we suggest you to contact inventory management companies<\/a><\/strong>.<\/p>\n\n\n\n

WHY DOES SERVICE\nLEVEL AFFECT YOUR SAFETY STOCK?<\/strong><\/p>\n\n\n\n

Service level goal is basically the corporate goals that a\ncompany sets according to its strategy to manage its inventory. In summary, it\nmeans you decide at what level you want to meet your customer’s needs based on\nyour stock capacity.<\/p>\n\n\n\n

Although your company has a common expectation, it is not\npossible to ensure 100% availability for the entire product range. Therefore,\nmanagement must determine at what level it wants to meet demand. <\/p>\n\n\n\n

While determining and applying an optimal service level\nincreases profitability, if the determined service level target is not\nsuitable, this will result in a lack of stock or an increase in the amount of\nidle stock.<\/p>\n\n\n\n

All this explains that it is essential to consult the experts of inventory management companies in India. Service levels are the biggest determinant of the safety stock.<\/p>\n\n\n\n

As a result, when you decide to invest in safety stock, you\nare blocking some of your working capital, which plays an important role in\nyour possible investment decisions. <\/p>\n\n\n\n

While this investment is necessary for strategically\nimportant and fast-selling products, it is a dead investment for products that\nsell slowly or have a low share of your profitability.<\/p>\n\n\n\n

There is an exponential relationship between service levels\nand safety stock. Whether it’s a by-product category based on customer demand\nor a product combination, you need to set the service level target on the basis\nof product groups in your company.<\/p>\n\n\n\n

IS YOUR SAFETY STOCK\nLEVEL SUITABLE?<\/strong><\/p>\n\n\n\n

It is easy to determine the level of the right safety stock.\nHowever, when assessing your own safety stock situation, you should ask two\nquestions: Do you have enough stock to meet demand? Too much stock? There is a\nfine line between too much and too little.<\/p>\n","protected":false},"excerpt":{"rendered":"

Optimal inventory management involves controlling merchandise from when stock levels require replenishment, until it is delivered to the customer. And this happens through orders to suppliers, reception, control and storage, etc. For many types of businesses, stock control is key to their success. It is part of the supply chain. Inventory management is a key…<\/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":[123,122,8,40],"class_list":["post-350","post","type-post","status-publish","format-standard","hentry","category-inventory-management","tag-improve-company-health-with-controlling-inventory","tag-improve-the-health-of-your-company","tag-inventory-management-companies","tag-inventory-management-companies-in-india"],"_links":{"self":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/350","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=350"}],"version-history":[{"count":3,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/350\/revisions"}],"predecessor-version":[{"id":490,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/posts\/350\/revisions\/490"}],"wp:attachment":[{"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/media?parent=350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/categories?post=350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cac.net.in\/blog\/wp-json\/wp\/v2\/tags?post=350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}