Articles

Ideas to Reduce the Inventory Costs

by Dynamix Group Writer
There are challenges in any business you do these days and real estate developers face challenges like regulatory issues, health care costs, employment issues, self-alignment, training, and many more along with businessmen of other sectors. All of these issues lead to higher costs, most importantly among the warehousing companies in India. These costs are very difficult to control for people who do inventory, produce, or move products. It is ideal to reduce the inventory costs in any business for the efficient working of the business and its success.   
  
BETTER PLANNING

Planning is a very important thing in any field especially when you are trying to control the costs of the inventory in the business. Blaming the departments for high inventory is not a wise option but instead, the team must work together and take action after proper planning. Planning does not cost much and has all the benefits one needs.

SPACE UTILIZATION

Most of the inventory items take up space and the crowded space could create traffic jam making the jobs of floor workers difficult. Space should be properly utilized to create more space to produce, move, and ship the goods. Using warehouses as good inventories is a good alternative no matter if you own it or have a 3PL commercial warehouse.

SAFETY STOCK

Safety stock is clearly a sales manager’s best friend. When they finalize the figure of the goods they are going to sell, they are not going to back up ever and safety stock is their backup. They always have the right amount of safety stock and they take precautions to prevent it from turning into dead stock.

OPTIMIZED INVENTORY CONTROL

It is a wise idea to maintain the inventory optimized by properly systematizing and outsourcing the controls. Generally, inventory counting or taking happens with a value but if you are having more than 100 materials of raw inventory or finished goods, a sophisticated inventory control is helpful. It could be a software, skilled personnel, or a task.

CONSIGNMENT INVENTORY

As a part of consignment inventory, you can buy raw materials and vendor owns it until you use after the delivery. Vendor owns some of the pallet full of money. Vendor managed inventory saves you a lot of money and incentivizes the vendors for better involvement.

BUY MORE INVENTORY

Just in Time inventory (JIT) delivers raw materials to your door at the correct time. It might be like a nightmare for your supplier. It makes sense if you buy in bulk so that suppliers could ship easily to a warehouse which then gets delivered to you with low costs. Do some math and make sure you are saving money while buying more inventory from your suppliers. It could also save room on your floor.


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About Dynamix Group Advanced   Writer

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Joined APSense since, August 9th, 2018, From Mumbai, India.

Created on Aug 13th 2019 06:05. Viewed 343 times.

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