Inventory Management Do's & Don'ts!

1
Inventory Management Do's Don'ts!
2
Do's
Tracking your Inventory Regular counting of the
inventory, update of stock location, received
date and other data in a reliable manner make
your inventory management work flawless.
3
Do's
Measure performance You have a system in place
but regular check on the inventory management
with certain performance measures that matters
most to your business makes you keep away from
risks or future failures.
4
Do's
Necessary Process alignments Sales and Operations
run parallelly and should have the desired sync
to keep the business process going and growing.
The demand and supply mechanism should be taken
to account on all levels to avoid under-stock
and over-stock of items.
5
Don'ts
Stocking on pre-assumptions You may save millions
buying a stock at lower prices and may lose much
more on holding the same waiting for
demand. Nothing can be on assumptions, demand
forecast has to be as close to right as possible
and the decisions have to be completely
data-driven.
6
Don'ts

• Unplanned discarding of excess inventory
• You need to have a clear vision on deciding what
  to discontinue and what to keep and how it's
  going to help you save from the financial hits.
  Finally, create rules for what you will do with
  aging or excess inventory. Proper planning may
  help you classify the
• items to sell, return back to suppliers,
  liquidate, donate and destroy.