Managing Inventory is as simple as Location, Location, Location!
Inventory management is the cornerstone to any successful (or unsuccessful) venture. The amount of tangible inventory is essentially equal to the amount of profit return. Ideally one wants to have a deficiency of inventory i.e. moving product, and a maximum amount or surplus of space to place more incoming product for future purchases. Managing inventory is as simple as location, location, location!
The best way to achieve this is with the Just-In-Time inventory method or JIT for short. The orders are placed, the materials come in, the materials move out, and finances increase. This remains the best example of efficiency in any warehousing environment. Although this is hardly ever the case. In many cases the inventory comes in and sits idle in a warehouse or production shop for weeks at a time. This is sometimes due to improper forecasting, canceled orders, or miscalculation of raw materials.
There is also a negative perspective associated with creating an inventory stockpile accumulation. First, to have an abundance of supply seems to give the impression that the product is failing, or not living up to reviews or performances. Secondly, an expanding amount of merchandise can become aesthetically unpleasing. This becomes especially prevalent in a small office/warehouse that is usually associated with smaller businesses. Work space taken up by inventory could easily be utilized in a better more productive fashion.
One of the most adequate ways to divert many of these symptoms is to utilize a remote or off-campus space to store inventory. An easy and more nominal method is via warehouse storage space. This allows for a designated venue to become a proverbial “middle man” in the supply chain. A warehouse allows a company or individual the unrestrained privilege of forecasting inventory needs based on square footage rather than orders processed.
Yes, Just-In-Time inventory management is one method that, if projected properly, displays the ease and prowess of logistics, but this can also be achieved through the effective use of space. The real cornerstone then becomes the capacity of the warehouse that houses the inventory.
Inventory management can be compared to real estate in that the bottom line revolves around location, location, location. Warehouse Plus can help create this location and help to show the power of inventory management and logistical awareness contact us.