Inventory management is critical for all sized businesses and it involves the sourcing, storing, and selling of inventory. Issues with too little and too much inventory can negatively impact the sales, reputation, and carrying costs of an organization.
Inventory management may seem like a simple process but can become more complicated the larger your business becomes. The end goal of inventory management is to have the appropriate amount of stock in the right place, time, and for the right price for customers.
Without strong inventory management, you may misplace materials or worse, accidentally run out of materials disrupting your manufacturing process. Keep in mind, inventory issues are estimated to cost a business $1.1 trillion every year. If you are interested in learning a few strategies to help keep a balanced inventory, check out the resource below. It provides several more tips for inventory accuracy as well as discusses other issues with too little and too much inventory.
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