Inventory control is always a contentious issue for entrepreneurs operating small businesses. However, its task which they need to perform whether they like it or not. These owners are aware of an important fact. Storing too much stock in their warehouses has a detrimental effect on their establishments. They have to dig deep into their pocket to pay for the necessary rent, storage, and insurance. This is a drain on their precious monetary resources.
On the other hand, if these proprietors don’t keep enough goods, they face other problems. They not in a position to cater to the demands of their customers in the market. As a result, they end up losing a lot of money in the form of revenue. This is why proper inventory control becomes a necessity.
Arnon Dror – How can entrepreneurs improve their organization’s inventory control?
Arnon Dror is a class apart in the world of international business and finance. This MBA graduate from Hebrew University is a role model for many young aspiring professionals. He over 20 years of valuable experience in this area. During this period, he has held many important posts in a number of companies. The important being is discharging the office of Vice-President (Finance). In fact, the officials of many multinational concerns are grateful for his services. These organizations include Presstek Inc., Xerox, Creo Inc., Kodak, Creo Americas, and Scitex. They hold him responsible for successfully implementing their internal reconstruction schemes. Thanks to his efforts, these concerns are now profit-generating entities. They acknowledge that his expertise extends to many diverse areas. These include internal controls, cash flow management, international taxation, corporate mergers, business negotiation, and strategic planning. In fact, entrepreneurs can get to know about his achievements. All they need to do is browse through the Arnon Dror official profile on the internet.
This financial expert suggests entrepreneurs should consider implementing the following 2 important tips to improve inventory control:
Adopt the FIFO approach
Entrepreneurs operating small businesses should adopt the ‘First In, First Out’ inventory technique. This implies these businessmen should first sell off products they acquire first to their customers. Only then should they move on to newer purchases. Adopting this approach is a necessity for owners dealing with perishable commodities. It ensures they end up with the least amount of spoilage and wastage. This helps them to save a lot of money.
Conduct regular stock audits
The proprietors operating small businesses should conduct regular stock audits. The entries in their stock registers should tally with physical items in their warehouse. The value, quantities, and description of such commodities should be the same in all respects. If this is not the case, they should find out the reasons for the discrepancies. The owners may unearth previously unknown frauds, human errors, and misappropriations.
The Arnon Dror Kodak team of professionals say proper inventory control help entrepreneurs improve their cash flow position. This is because they don’t have to incur unnecessary cost relating to warehouse rent and insurance. As a result, they end up saving a lot of money. This what they want at the end of the day. Implementing the above 2 important tips can help to achieve this objective.