Inventory planning allows an organization to employ better strategies of controlling
goods right from production until they are sold to the final consumer. The procedure and policies
adopted in inventory planning and control are thus a better way of deterring employees from
abusing inventory. Usually, employees in a work environment that is loose tend to steal
inventory items. When employees steal items from the business, the business is likely to make a
However, if the right inventory policies and procedure are installed, such cases cannot happen,
adopt some of the latest technologies currently available in managing the inventory. The adopted
technology involves accounting and business software which have the ability to order, receive,
manage, as well as sell any inventory. With such software‘s in place, it is hard for employees to
steal any products, and hence all produced, manufactured or traded inventory will reach the final
consumer. This means that the company won‘t have to incur any further losses.
From the information provided above, it is evident that inventory planning is a very significant
aspect of any business. As such, business owners and top-level management ought to implement
the right inventory planning and control strategies if they are to gain better cash flow, higher
profits as well as reduce issues of inventory shrinkages. These three benefits are interrelated.
Reduction and elimination of stock shrinkage translates to an increase in gross profits since the
company is able to meet the demand in the market for its products. When it does this, the result
is a high rate of return on invested capital and hence better cash flow. Better cash flow affords
any organization higher profits, which help the business to increase its scale of operation. This
additional capacity means that the business and can achieve its set goals and objectives. As such,
it is important to point out that better inventory planning and control is the key to a company‘s
achievement of its goals and objectives.
If you are currently running Intacct or Quickbooks and would like to schedule a free
consultation to see if QStock is right for you as your next potential Warehouse management
system, Contact Us Today by filling in the form below. We would love to hear about your
business and how QStock can help you achieve your business goals.
Inventory management definition
As a part of your supply chain, inventory management includes aspects such as
controlling and overseeing purchases — from suppliers as well as customers — maintaining the
storage of stock, controlling the amount of product for sale, and order fulfillment.
Naturally, your company‘s precise inventory management meaning will vary based on the types
of products you sell and the channels you sell them through. But as long as those basic
ingredients are present, you‘ll have a solid foundation to build upon.
Small-to-medium businesses (SMBs)
often use Excel, Google Sheets, or other manual tools to
keep track of inventory databases and make decisions about ordering.
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