Effective Inventory Management Strategies to Reduce Costs
All successful large companies must have proper campaign management strategies in place for things like quality, data, finance, human resources, and sales processes, among several other important business functions. Companies that deal with large amounts inventory, however, have the added management problem of achieving efficient and cost-effective inventory management strategies.
Since the warehouse and industrial property identification products we create at Camcode are designed to markedly improve business inventory management, we wanted to learn more about what goes into a cost-saving inventory management strategy.
More specifically, we wanted to find some expert tips from industry professionals on what they would consider a great tactic that could meaningfully reduce a business’ inventory costs. To do this, we asked 19 inventory management strategy experts to answer this question:
“What are the most effective inventory management strategies or techniques companies can use to control and reduce inventory costs?”
We’ve collected and compiled their expert advice into this comprehensive guide on how to create an inventory management strategy that can reduce your inventory costs. See what our experts said below:
Mark Breznak is COO of Third Wave Business Systems. His background is in application development and he has founded and successfully ran two consulting companies. Mark manages the strategic and tactical operations of Third Wave, ensuring the effective delivery of software and services. He holds both an undergraduate degree in Computer Science and a Master’s degree in Business Administration.
The most effective inventory management strategies that can ultimately help reduce inventory costs are…
Gain the business intelligence needed for your business by implementing the right Business Intelligence (BI) solution.
This will help you gain a better understanding of what inventory was sold over time, type of sale (in stock vs. custom order), fastest moving items, and where are they being shipped. It will also help you understand your suppliers, including what is the lead time, how quickly suppliers can produce, where the best place to ship given the destinations of the sale.
In addition, you’ll be able to determine a target inventory to keep on hand for the majority of items as well as have a process that automatically runs to calculate when the best time is for placing orders.
At Third Wave Business Systems, we help companies achieve this using the SAP add-ons like BOARD Cube, a pre-packaged solution for budgeting, finance, sales and purchasing, and inventory management strategies.
Posted by Nicole Pontius in Camcode’s New Technology