Inventory Control Best Practices
Getting you inventory in control is not that easy. There are certain things you need to know about and you need to be able to have it in control.
That is why these easy steps are now being revealed to you to have control over your inventory.
Evaluate your Infrastructure (IC)
If you already have the management software package, IC module is what we are talking about here. This software will help you save time because it is the software that helps you to detect quickly the number of stocks left without going to your warehouse, by knowing about theft and by lowering the rate of the stock out or lost sales and overstock.
Customer Service Level
There could be some percentage of measures that includes the orders filled completely. Also, the percentage of the items delivered to the items which are already delivered. You must remember that the main concern on reducing the inventory is the customer service level. Let’s see, 95% is the acceptable service level for you. That is the general use of IC software. The main use of it really is the safety of the stocks. You need to meet the objective of protecting your stocks that is why using IC software is one of the most convenient ways.
It is always nice to know more about the industry norms to help seldom affect your behavior. You may get this information from the trade associations or you may go to the annual statement studies that are sponsored by the Risk Management Association or the Industry Norms and Key Business Ratios given by the Dun and Bradstreet. These are just some of the aid you need to know more on the industry norms. You have to remember that having knowledge about these norms will help you be more mature about the things that you do in your business and will help you protect the inventory of your business. There could be some flaws about the number of days of inventory. What if you just have 45 days worth of industry norms? There is no necessary action needed, but it would give you a great context as you fine tune your system.
Use of Best Practices
The minimum of overall inventory is not the end of the inventory story. You must learn to ascertain things about reduction. Even if you reach a good overall level of stocks, you still have many items which are out of balance, over balance or under. That is why you should make some effort to do the best practices that would help minimize the quantities that is required while you are raising the quality of the inventory. But you have to bear in mind that there are still few actions that should be applied to the continuous improvement programs for the inventory based businesses. Remember that your mileage may vary so you should always be ready.
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