RSS

Tag Archives: Inventory

Reducing The Risks With Technology In Business

slide-1

Every business owner wants to know the way to maximize their revenue and profitability and reduce the risks they are at. Leading companies, in the supply chain industry, have identified risks to their own supply chains and have created strong mitigation strategies to offset any negative effects.

Natural events can have a huge impact on the supply chain and this cannot always be considered when creating strategies to avoid negative effects. In the aftermath of the Japanese earthquake in 2011, there was a global part shortage – this was due to factories being destroyed. These events seriously disrupted their supply chain – leading to delays in taking products to the market. This then had a knock on effect and damaged sales and increased costs in worldwide markets.

It is not just the environment that can cause havoc with the supply chain, economic crisis, political unrest, demanding customers, technology changes, terrorism, short product lifecycles and the interest can all affect the way businesses operate across the globe.

Through utilising intelligent data from your supply chain, in combination with external market information, it is possible to advance your business’ ability to plan for the future wisely.

You first need to identify your risks:

1.       Inventory Risk

Inventory risk is often the biggest risk that any business can face – it is the result of a mismatch in projections and actual market demand. Maintaining excess inventory can become a liability and can hugely affect your finances. If you fail to predict an accurate probability of internal and external triggers of disruption – you will not be predicting the future correctly.

2.       Procurement Risk

A procurement risk is to include unpredictable natural events which can affect the supply chain. Natural events can create shortages of materials and products and increase prices quite dramatically.

3.       Financial Risk

What are your financial risks? Is your capital tied up in business investments? Or do you have slow incoming capital? If so, this will be identified as a financial risk. By making yourself aware of the security of your finances – you can be sure to have a secure financial future.

Technology Lowering the Risks

The ability of the technology available today is tremendous; business owners are able to practically foresee the future of their supply chain when entering appropriate data. Further technology in the form of analytics can also be used to feed data from their existing risk management systems into analytics and dash boarding applications. Analytical information can be used to spot key trends, patterns and potential future disruptions.

 

Leading freight company, CC Freight, has been providing European freight services since 1925. They understand the importance of using technology to reduce supply chain risks.

 

 

Tags: , , , , , , , , , , , , , ,

Five Ideas to Improve Your Business’s Stock Management

If you run a business, large or small, stock control is a logistical problem that you are likely to encounter. You need to find the most effective way for your company to manage its stock, but you might be unsure how to go about doing this. Here are five easy to follow tips that if implemented will hopefully improve your business’s inventory management.

Discount Old Stock

If you find yourself with old stock left in your warehouse or stockroom, you may be struggling to come up with ways of getting rid of it. The stock is still obviously an asset for your company, you paid good money for it so you can’t just throw it away, yet it’s taking up valuable space in your stockroom. The best idea is the simplest, discount the item in question in the hope that you can shift the units quicker. Although your profit margins on the stock will be slightly smaller, you will have freed up that space in your warehouse for new stock which might sell better.

Invest in Inventory Systems

Organisation is the key to any successful business, so in this case you might want to think about investing in some inventory control software to help your company run more smoothly. The best thing about inventory control software is that it does most of the difficult work for you. Good software will allow you to merely scan through barcodes to register your stock. It will also begin to tell you when you need to re-order certain items, as well as provide you with feedback as to how quickly different items you stock are moving.

Designate an Inventory Receiver

This is especially relevant if you run a small business. As easy as it may seem to just allow the person who is nearest to the door to sign for a new delivery, this leaves everyone confused as to what stock has been delivered and when. Designate the job of inventory receiver to one of your staff, one of their tasks will now be to always sign for and make a record of any deliveries that come in. This way, if anyone has a question about stock, they’ll know exactly who to go to and better yet, your inventory receiver will always be able to answer their questions.

Manage your Levels of Stock

You need to find a good balance between having enough stock to supply your customers comfortably, whilst not having so much that you’ll find it difficult to shift. Only keeping the bare minimum in your stockroom might be cheaper and require less space, but you become very dependent on the reliability of your suppliers. Don’t take any chances; find a happy medium so you’re sure you can serve your customers well.

Locator System

If you haven’t already, you need to devise an easy way for your staff to locate certain stock within your warehouse or stockroom. Keeping particular items of stock in a fixed location will allow your staff to find what they’re looking for quickly and efficiently. Keeping your stock organised in a logical manner also means that any new employees shouldn’t have too much trouble discovering how your warehouse works. What this also allows you to do is begin to map out your warehouse, creating brilliantly efficient stock system for your staff.

Posterita are a global point of sales software system that provides many innovative features such as inventory control.

 

Tags: , , , , , , ,

 
Follow

Get every new post delivered to your Inbox.

Join 4,952 other followers

%d bloggers like this: