Inventory=Cash, so treat them as equals

If you own or manage a business that manufacturers a product, distributes components to others, provides repairs services, a retail business and numerous other types of businesses, you realize that inventory can be a huge factor on your bottom line.  I mentioned this because I constantly encounter situations where these owners/managers treat their inventory as if it’s only “stuff” that takes up space on their shelves or in their warehouse.

That is the WRONG way of thinking about inventory. You need to think of and treat your inventory as cash, because that is exactly what it is, CASH.

You wouldn’t leave piles of cash lying around on a shelf because if you did, it wouldn’t lie around long, now would it?  So what should you do, begin implementing inventory control measures, designed to protect your Cash.

Here are 3 simple steps that I encourage every client to enact as soon as possible:

*Eliminate the Yearly Inventory and move to Cycle Counting, it’s more accurate and you are able to react and resolve issues sooner.

*Lock down your warehouse/storeroom because if everyone within the company has access to your inventory, how controlled is it.  Do you want everyone to have access to your wallet?

*When inventory does leave the warehouse know who received it and why.

There are obviously more controls measures that a company can and in most cases should implement.  However, when you need to make some quick changes you can’t go wrong with the 3 suggestions mentioned above.

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As an Inventory & Operations Consultant, my mission is to help you find the “LOST” cash in your warehouse.  I accomplish this by developing customized solutions that will make businesses more organized, productive and therefore more profitable.

I always offer a FREE 1 hour consultation but now I’m offering a FREE Audit on your Inventory Management Process.  This $500 value allows you and your team to assess my services at absolutely NO RISK to you.

 

For more information on my services, please visit my website, www.jitsolutionsgroup.com or visit my LinkedIn profile: www.linkedin.com/in/inventoryjoe/.

 

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for additional tips, techniques as well as other useful information.