Last Updated on April 29, 2020 by hamza
Planning a Controlled and extendable inventory management system is vital for new and small-scale companies as soon as they tend to grow with the pace. But in practice, this is no easy task and requires effort in every operation of the company to build up this phenomenon. So how to do?
We have accumulated a few helpful for you, take a closer look at the points below, see how the On-Demand-Manufacturing and Inventory Control system helps to control the inventory system without the extra expense.
What is Inventory Management?
Inventory management is the process where a retailer manages its product stock by tracing what arrives in from producers and what goes out in the form of selling and losses. But the question arises here, which factors determined its assurance?
Maintain Minimum inventory Levels:
Loading shelves full of a stock is a wrong idea unless you require for manufacturing. On the other hand, out-of-stock is also not suitable for a manufacturing company. On-Demand Production is the way to get out of it. You need to order the raw material when the order is received. This process would help you in keeping low stock maintaining cost as you scale your business and also the fear-free from obsolete raw material.
How much inventory do you require in a certain period? How fast you make cash out of it? Your re-order levels should trigger you to keep your manufacturing department in the running. For this, you need to monitor your sales thoroughly and better to make forecasting for your sales budget. Sales projects for new companies can be troublesome, but using retail industry forecasts can help see substantial enterprise understanding.
Use an Open-to-Buy System or OTB
OTB is the system that allows a manufacturer to plan and budget the reserves available to buy the inventory. The purpose is to keep an adequate level of stock maintain for the coming month; it determines this quantity using the sales data and stock level of the previous month. Its calculation based on the following formula
Target Sales + Remaining stock from the month-Current month inventory required =Open (inventory) to buy(OTB)
Handling of shrink inventory
Inventory shrinkage refers to the mismanagement of the stock. Usually, in the form of stolen, or when the physical count of inventory is less than the listed quantity. For an efficient inventory management system, shrinkage of stock should be minimized. Now, what measures should be taken to control such a situation?
There are numerous ways to manage shrink, but the three most useful techniques are to
(1) Floor to the sheet, sheet to floor system says, to regular checklist with physical stock.
(2) check stock return at the end of each day and make sure the same is recorded in the books.
(3) Be skeptical and follow your abilities when it begins to lose of stock that could be in-house.
Austin Trim and On-Demand Manufacturing
Sustaining secure connections with your merchant partners is one of the most immeasurable ways to control your inventory. Strong partnerships will build an ambiance where a scalable inventory management system is feasible.
At Austin trim, We follow, on-demand-manufacturing-and-inventory-control and we are always in seeking to generate wholesome, vibrant, and colorful life-bearing custom patches, pins, labels for our precious customers. Austin Trim makes it accessible for you to get precisely what you require and when you desire it.