Solutions which gives importance to inventory management

The control of inventory is an aspect of the administration that very rarely receives the due attention within the micro, small and medium enterprises. Most of the time you do not even have any kind of records, policies or a system to carry out this task. But what is inventory and why is it so […]

The control of inventory is an aspect of the administration that very rarely receives the due attention within the micro, small and medium enterprises. Most of the time you do not even have any kind of records, policies or a system to carry out this task.

But what is inventory and why is it so important? Inventories are tangible assets of the company that are held for sale or to be used in the production of other goods and services that will later be commercialised.

The importance of inventory control of commercial companies lies precisely in the axis of these, which is the purchase and sale of goods or services. A bad inventory system can have terrible consequences on the profits of the business.

On the other hand, good management will allow the company to reliably know quantities and levels, which products have greater turnover, when to replenish, economic situation in each period, the value of the merchandise, among others.

Remember that here at SAM Technology you will find what you need in order to take operations to a whole new level and increase productivity. A company with an experienced and dedicated engineering team of experts that can offer quick and practical solutions to your problems, tailor-made to cover your requirements and demands regarding warehouse management solutions. Contact us for more information

Here we share 10 reasons why it is important to have a good management of your inventories:

  1. You cannot survive without a constant flow of inputs and outputs

Each business depends on a constant flow of inputs and outputs of supplies, products and other resources. Inventory control is the process to follow up on all these operations.

  1. It affects all aspects of your business

If there are no products, your sellers can not sell. If the merchandise is not delivered on time, your customers will be upset.

  1. The inventory is one of the main expenses of the company

By limiting the amount you spend in inventory to the minimum, you have more money for other projects in your company.

  1. The inventory is an asset that depreciates

Whether you work with food, electronic equipment, vehicles or virtually any other type of manufactured product, its value will depreciate over time.

  1. Administration costs add up

Having an excess of inventory causes costs in terms of space and security of these.

  1. Shortages are missed opportunities

If you run out of products you can send a signal to your customers that they cannot depend on you, which could cause them to look for another provider.

  1. Demand is not always easy to predict

Do you know the amount of product that is going to be sold this month or in the next year? Nobody can see the future, however you can estimate sales with surprising accuracy by using inventory software. Using historical data, you can find seasonal trends and other useful information to make purchasing decisions.

  1. Inventory control is not always easy

As your business grows, your inventory also grows, and the complexity of managing it increases. It is necessary to have the right tools that allow us to continue growing without losing control.

  1. Without a management system, the growth of your company will be limited

Do everything possible to take control of inventory through software, so you can automate the controls and be prepared to grow.

  1. Your competitors are probably already doing it

Management software is becoming much more common among small and medium businesses. Do not lose competitiveness and modernize the operation of your SME.

Identify the errors in your inventory control system

If you are related to the health sector and you are in charge of the warehouses and inventories, surely you will feel identified with the 5 most common errors:

“Better than missing”: For fear of denying the client a medication, or to postpone surgery due to lack of medical instruments, orders are placed that exceed the demand, directly impacting the costs and generating excess products in the end. the warehouses.

Lack of demand analysis: There are seasons in which there is greater demand for certain products and this is directly related to the turn of your company; the rate of rotation of instruments in a hospital is not the same as medicines in a pharmacy or supplies in a dentist’s office. TIP: To keep an effective inventory control system, we recommend analysing factors such as timing, production, costs and demand behaviour.

Ant theft or disappearance of supplies: Poor control can lead to loss of control of your inventory, which will affect your costs, sales and service.

Lack of planning: Some health organizations have contracts with distributors and manufacturers that help minimize costs by the volume of orders placed. Carrying an ineffective inventory can result in unplanned purchases and therefore more expensive when leaving the contractual terms.

Lack of communication with suppliers: When manual inventories are carried out, these can be modified several times a day by more than one person, resulting in lack of control, outdated and loss of information for your suppliers. TIP: Keeping communication fluid and even in real time with your suppliers, through an inventory software, will allow that process to be efficient.

The management of inventories represents one of the problems that most affect the growth of SMEs, so carrying it efficiently will bring multiple benefits to your company.

Benefits of maintaining an effective inventory control system:

  • Greater profits when taking care of your costs.
  • Satisfaction and recommendation of your customers.
  • Agility in the internal processes of the company.
  • Market intelligence that will help you make better financial decisions.
  • Sustainable growth of your company.

These are just some benefits that will generate an effective control of your warehouse if you take your information up to date.

Here at SAM Technology Engineers we specialise in equipment for handling bulk materials for mining, steel, aluminium and may more. Contact us today for more information regarding our top efficient solutions.