What does Effective Inventory Management Truly mean?
- John Atkinson (FITOL)
- Professional Training & Coaching
- Global Spirit Training, United Kingdom
It is often said that beauty is in the eye of the beholder, and this is particularly true when defining what does effective inventory management truly mean. Organisations across various industry sectors will usually have their own subjective definitions, these often include: “ To have enough stock to meet our customers’ needs”, “to have the right stock in the right place at the right time”.
When defining the true meaning of Effective Inventory Management, it is helpful to focus upon the real tangible organisational benefits that Effective Inventory management brings.
Firstly, effective inventory management ensures that the optimal amount of stock is carried. This ensures that the organisation’s cash is not trapped in the warehouse and can therefore be utilised elsewhere in the organisation, for example to fund expansion, reduce debt, or invest in production assets and machinery which will drive further revenue increases and ongoing profitability.
Secondly, effective inventory management underpins and assures customer sales revenues. Being able to meet changing customer demands, not only delivers great levels of customer service, but also builds reputational trust with the customer, potentially leading to additional business ( and revenue), supply contract extensions, preferred supplier status within tenders and ultimately to increased financial nett worth of the organisation.
In delivering these benefits, truly effective inventory management requires a range of methodologies and techniques to ensure that the organisation is meeting customer demand consistently and with the optimal use of financial resources. Our course not only teaches these methodologies and techniques, but also provides delegates with a soft copy inventory management model to enable them to deliver truly effective inventory management for their organisation, in their industry sector and in their corner of the globe.