Entrepreneurs are always looking for viable ways to streamline their business operations. The objective of these businessmen is to eliminate unnecessary costs and improve internal efficiency. This is how they intend to increase their bottom-line profits over time. However, many prominent financial experts say there is one important area they tend to neglect. This is proper inventory management control.
Arnon Dror agency – How can entrepreneurs streamline their inventory process?
Very few financial professionals can claim to achieve the same level of success as Arnon Dror. This MBA graduate from Hebrew University is the former Vice-President (Finance) of US Channel Group. He has over 2 decades of valuable experience under his belt. People who know him say he has in-depth knowledge in many diverse areas. These include cash flow management, ERP integration, internal control, corporate mergers, business negotiation, and international taxation. They also give him credit for converting many loss-making companies into lucrative organizations.
The Arnon Dror agency experts say entrepreneurs need to take inventory management very seriously. The last thing they want to make are avoidable mistakes result in loss of valuable orders. This is the reason why they should keep in mind the following 4 important tips:
- Invest in automation
This is the step first entrepreneurs need to do to streamline their supply chain. Investing in a good inventory management software platform has many advantages. They closely monitor the purchase, distribution, and sales of products these businessmen deal in.
Moreover, the process helps in minimizing avoidable human errors to a large extent. They could even consider opting for suitable cloud-based technology. It enables these proprietors to keep track of various procedures from remote locations with the aid of their smartphones.
- Identify and dispose of slow-selling products
Entrepreneurs may find that they have certain products in the warehouse for over 6 months. If this is the case, they should immediately stop purchasing such items. They are occupying unnecessary shelf space. Moreover, these proprietors have to pay for the storage and insurance costs on them. This is a waste of money. The owners need to realize there is no demand in the market for such goods. They should take the necessary steps to dispose of them as soon as possible.
3.Adopt FIFO (first in, first out) approach
When it comes to streamlining their inventory process, entrepreneurs should adopt the FIFO approach. They should make it a point to sell their product in the same chronological order as they purchase them. This becomes necessary when dealing in perishable commodities or cosmetics. The shelf life of these goods is generally very short.
- Conduct a stock audit
To ensure the entire inventory process is working smoothly, entrepreneurs conduct a stock audit.this should make the mistake of only relying on automation platform. This goes a long way in identifying any discrepancies in the system. They can then take the necessary steps to prevent them from occurring.Proper inventory management and control can help entrepreneurs enhance their bottom-line profits. It also goes a long way in improving the internal efficiency of their organizations. Implementing the above 4 important tips say Arnon Dror ct experts can help them in this endeavor. They won’t regret taking this decision.