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Tag Archives: Inventory Management


Inventory Management and Cash Flow

Inventory ManagementCash flow is the lifeblood of any business and inventory management is the plasma to that lifeline. Inventory Management to keep accurate and minimize on hand to sales is critical to cash flow that feeds all critical elements for any business, including;

Revenue Growth
1. Looking for revenue growth either by increasing activity with current customers , or mining new opportunities in their respective industry.

Service & Quality
2. Focusing on providing quality product and excellent customer service to all its clinets

Portfolio Growth
3. Expanding its product portfolio and menu offering to continually differentiate itself in the industry the firm competes

Typical Inventory Management issues that any firm faces to maintain accuracy and positive cash flow

1. In a firm it is not untypical when asked “who is responsible for maintaining inventory integrity and accuracy “for either no one or everyone to respond” , which translates to actuallyno responsibility in the company.

2. Processes rely on individuals as opposed to being systemic and well understood and executed throughout the organization.

3. Physical inventories are viewed as a “count” as opposed to a reconciliation against the company’s perpetual inventory and books & records.

4. ERP item master data information is not maintained , and transactions go unreconciled.

5. There is not an easy to manage physical layout in place to make inventory management and reconciliation easy to manage and maintain.

6. Obsolete products are “pushed” to the side without being dealt with resulting in poor facility utilization and less than optimum cash flow.

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