What is the right size for a stock, and how is it managed?
Good inventory management is based on demand forecasting, supplier lead times, and efficient ordering practices.
- Set a target for inventory value and turnover rate
- Monitor waste and product movement
- Set reorder points and avoid overstocking
An oversized inventory ties up capital, while an undersized one can lead to delivery disruptions. Good inventory management is based on demand forecasting, supplier lead times, and efficient ordering practices.
Digital inventory management systems make it easier to track products and make purchasing decisions. Monitor inventory turnover and compare it to industry averages.
- Read also: How to Manage Your Business Inventory