One of the most difficult aspects of a supply chain is inventory management. When too many products remain in stock for too long, it negatively impacts your bottom line. And with an overcrowded warehouse, some products can slide into obsolescence or even become damaged. Alternatively, lacking the right inventory to keep customers happy could lead to increased costs related to more expensive shipping, lost sales and lower margins. The good news is, there are 3 tips to help you optimize your inventory. By acting now, you can manage a balanced inventory to boost profits.
Tracking Reserved or Allocated Inventory
Having a precise picture of current inventory is crucial if you want to avoid problems. Including products in inventory already allocated to customers can cause a situation where you don’t have enough in stock. By keeping track of reserved inventory, you can order products based on accurate information, not conjecture.
Handling Vendor Managed Inventory (VMI)
Storing vendor-managed inventory in your warehouse is another challenge, and keeping track of the VMI products you sell is imperative if you want to maintain a strong relationship with a supplier. Notifying a vendor of used or sold items and paying an invoice for used products at time of usage can go a long way to keeping suppliers happier and optimizing inventory.
Manage Obsolete Inventory
Avoid the problems that accompany obsolete inventory. If you stock outdated products in your warehouse, you could face significant revenue losses and space issues. So tracking this inventory, and circumventing the purchase of it, can help you reduce inventory write-offs and lost profits.
Your Business Needs Advanced Inventory Management™ Software
So how can you effectively manage inventory to realize maximum profits? Advanced Inventory Management is the complete solution to optimize inventory and increase revenue. It gives you total visibility into your entire inventory, across multiple warehouse locations. Aside from tracking reserved inventory, vendor managed inventory, and obsolete inventory, you gain a suite of tools to help you optimize inventory, avoiding unnecessary expenses and boosting the bottom line.
Learn More About Advanced Inventory Management
Get more information about Advanced Inventory Management, part of Advanced Supply Chain Software for Microsoft Dynamics 365 for Operations, by contacting us today. Call us at (770) 368-4000.