Got inventory? It may be costing more than you think.
In the next few minutes, you’ll discover how to cut those costs and put more money in your pocket.
If you have inventory of any kind (parts & pieces, liquids, solids, food products, medicines & medical supplies, raw materials, goods in process, etc.) chances are good that you also have problems with that inventory that you may not even be aware of and, they’re usually expensive problems. Those problems are compounded when: inventory is spread over two or more locations; when some items must be tracked by lot or serial number; when there are special storage requirements; when some items have expiration dates, etc. And, don’t forget the cost of “shrinkage” – inventory that walks out the door without your knowledge.
Other issues that drive inventory related costs include, but aren’t limited to: customer fulfillment when stock isn’t available; excess stock on hand; awkward (or no) integration of stock sales and drop-ship sales through Amazon and eBay; kluged integration of inventory data with your accounting system; inability to capture historical inventory data that can be used to negotiate better prices from suppliers.
So, how can you cut the cost of your inventory and put more money in your pocket? The fix can be found with a modern inventory and warehouse control program that is made specifically for your accounting system. Bigger companies often use “Enterprise Resource Planning” (ERP) systems that include a very sophisticated inventory and warehouse control system. But, those programs are expensive and out of reach for most small and mid-sized companies. However, small and mid-sized companies and non-profit organizations can get big-company performance at small company prices from some spectacular off-the-shelf programs that are made specifically for your accounting program. These programs offer a rapid return on investment (ROI) and will:
- Increase your inventory turnover
- Optimize stock levels and reduce the amount of working capital tied up in inventory
- Reduce out of stock problems for customer fulfillment
- Strengthen your negotiating position with suppliers
- Provide more leverage on your balance sheet to increase profits
If you would like help in evaluating your existing inventory control program, contact me. I can help you determine if upgrading your current inventory control program makes sense and, if so, which program offers the best fit for your company’s unique needs. Be sure to take advantage of my FREE offer described below.
About the Author
Mr. Casebere is a partner with the firm B2B CFO®, a national association of highly skilled Chief Financial Officers who provide part-time assistance to small and mid-market companies. Mr. Casebere has over 30 years of experience in corporate finance helping companies of all sizes achieve their goals. He is an expert at helping business owners increase their profit margins while improving cash flow and maximizing company value. He holds an MBA, is a Certified International Credit Professional and Project Management Professional. You can contact him at: firstname.lastname@example.org .