1. Inventory Management:
The Key to Successful Business Planning

2. Why inventory management is critical
 Inventory is one of the biggest assets a company has
 Effective inventory control has a direct effect on how
successful your business will be
 Developing effective inventory management strategies
can be a huge competitive advantage
 Not having a balanced inventory can be a costly mistake
Effective inventory management leads to:
Better inventory balance
Higher inventory turnover
Accurate planning
Cost savings
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3. Different businesses need different strategies in order to be
successful
First in First Out- Moving older stock first
Last In First Out- Moving product that is produced last out first
Just in Time- Production process begins when the order is received
Balancing the need of product availability with carrying cost
is essential for successful inventory management
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4. Tracking key metrics
Be informed about your
inventory by keeping track of:
 Inventory on hand
 Part history
 Aging reports
 Initial order fill rate
 Measures of overstock
 Cost of backorders
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5. Inventory not managed effectively results in…
Excessive inventory
Backorders Having too much inventory
creates:
Unable to fulfill an order when it is Cost associate storage and labor
needed is costly and can result in: Possible waste of parts
Ties up cash flow and opportunity
Expedited freight charges
Partial shipments Tips
Customer frustration Use an inventory management system that has clear
visibility into all aspects of your inventory order
Loss of customers fulfillment
Use forecasting to determine purchasing patterns--
purchases that are driven by quantity/price breaks
may not be saving you money in the long run
Liquidate slow selling and inactive inventory
Track lead times, order history and use min/max
www.cerqa.com levels to keep an eye on inventory and prevent
backorders

6. Be accurate with your inventory
Automate Cycle count
Automation reduces human touch and decreases Cycle count on a monthly basis
the potential for human error. Automate through to ensure inventory on hand is
labeling parts with barcodes, having bar cording accurate.
locations, and using RF scanning devices.
Quality
Do your quality processes start at the picking
floor? Make sure the supply chain management
company you are using has quality processes in
place. Simples process such as implementing a
double verification process can go a long way.
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7. Turn your inventory management into a
competitive advantage by…
Minimizing your carrying costs
Maximizing your order flow
Reducing your waste
Increasing your visibility
Increasing customer satisfaction
Cerqa provides a complete supply chain management solution
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8. Cerqa is a global supply chain management company
that can assist you with you inventory management.
Contact us today to learn more.
sales@cerqa.com
(512)439-1281