Proper Inventory Planning for your Business Needs
Article by Richard Warburton
Inventory Planning is highly essential for any organization. The planning must be done in such a way so that the company’s plans and the demands of the market are in sync. With the rapid alteration in the demand, the need for inventory planning has arisen to a great extent. Proper inventory planning will thwart any major problems, including depleting sales profit margin and cash flow that are likely to occur in future.
During inventory planning it is essential to take into consideration the Demand Management, Production Planning, Sales and Operations Planning, Material Requirements Planning and Inventory Reduction.
What are the common inventory issues that a business could face? Debtors’ leniency, shrinkage, cash flow planning, slow moving inventories and loss are some of the inventory issues that can be set right by proper inventory planning.
If you are set on making your business boom with your inventory planning, then concentrate on the following areas: Proper inventory valuation, classifying fast moving and slow moving things in your inventory list, and marking out obsolete inventory is strongly recommended. Further, it is best to code your inventories electronically. You may also create a spread sheet and keep a track of your outgoing and incoming inventory. Insuring for inventory losses that could occur due to rain, fire, etc., is the best strategy.
Thinking of a software solution that will lessen your inventory planning burden? Well, there are umpteen numbers of choices available. Run a web search and you are sure to zero in on the best inventory planning software that will suit your needs. Make it a point to choose an inventory planning software from a company that is trustworthy and has a vast client base.
What are the techniques used in inventory planning? Some of the most popular techniques are JIT, MRP, DRP, SCM, Risk Management and EOQ. Generally, each of these techniques are used for inventory planning alone and in some cases a combination of them are used for better results.
A proper investigation is necessary to find out the root cause for inventory losses. In case the problem continues, it is not advisable to zero in on a particular factor alone because there could be a combination of factors. Tackling the inventory issues as soon as it rears its ugly head is important.
Find the best inventory solutions that will help in forecasting, optimizing the stocking levels and the inventory, and refill the stock based on your business requirements.
Richard Warburton writes on business and information technology. Demand Solutions has been providing software for the full spectrum of supply chain management – inventory planning, sales & operations planning (S&OP), demand planning and forecasting, collaboration, inventory optimization and replenishment, advanced planning & scheduling and retail planning.
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