Keep track of your inventory

You have stocks (inventory) for a number of reasons. For example, you might have an inventory of raw materials ready for production, for work-in-progress, or you may have stocks of finished goods.

Whatever the reason, it's vital that you control your stock levels carefully. Too little and you may run into production problems. Too much and you'll have money tied up unnecessarily. This can affect:

• your cash flow
• your ability to provide satisfactory customer service
• how you use your available space
• the movement of goods through your manufacturing, storage, access and shipment processes
• your overall efficiency and cost control
• your return on investment (ROI).

Good inventory control

It's a delicate balance. Having too much inventory costs you money. Having too little loses you sales. Having the wrong stock can mean lost income due to lost sales and perceived poor customer service. Also, if you buy the wrong stock you might never be able to sell it.

It's important that you have the right stock, in the right amounts. Do this and you can look forward to:

• increased sales
• new customers
• increased customer confidence
• the cash flow required for new plant and equipment, or for expansion
• the ability to increase staff pay and benefits
• new investors.