Keeping Your Inventory In Balance

Your inventory is the largest item on your company’s balance sheet under the current assets section. Improper inventory management can lead to expensive losses or a reduction in customer service level. However, effective inventory management can help you cut the costs of being tied up in excess stock, ensuring that you have the right products on hand in precise quantities – with less likelihood of spoilage or obsolescence. Anima Web helps keep a balance between the amount of inventory coming in and going out. We also control the timing and costs of non-capitalized assets and stock items, enabling you to reach optimal profitability.

Weak Inventory Balance Can Contribute to Losses

The instability between overstock and stockout of inventory can shrink the profit margin of your company. If you invest your money buying more inventory than it can sell in (overstock), the products will remain there and ultimately count off as losses. You have to deduct the costs from profits which creates a deficit in the budget. Likewise, when you run out of stock, you fail to fill your customers’ orders and give them the chance to purchase from your competitors. Lack of proper inventory balance can also lead to an increase in the obsolescence of inventory due to expiry or seasonality and a reduction in cash flow.

Anima Web Creates Stability Between Overstock And Stockout

Inventory management requires a data-driven execution process to create a balance between your sales goals and excess reduction. Anima Web helped many customers create a better inventory balance with the perfect inventory count and continuous improvement in operational practices. We take the following measures to keep your inventory in balance.

Prioritize your inventory

We categorize your inventory into priority groups to help you understand which items you need to order more frequently and which items (are important to your business) cost more and should move slowly. We segregate the inventory into A (higher-ticket items that you need fewer of), B (moderately priced items), and C (lower-cost items that turn over quickly) groups.

Identify risky inventory

Having more products than needed can slowly tamper your cash flow. We identify dead or obsolete inventory before they start contributing to losses.

Analyze supplier performance

An unreliable supplier that’s habitually late with deliveries or frequently limits an order can also hamper your inventory balance. We analyze your suppliers’ performance and take notice of those contributing to uncertain stock levels and stockout situations.

Practice the 80/20 rule

A general rule to balance inventory is to prioritize inventory with 20% of items that bring 80% of profits. Our experts will help understand the sales lifecycle of the items that make you the most money, so you never fall short in managing them.

Verify how you receive stock

Minor discrepancies in the process of receiving new stock could leave you questioning why your numbers don’t align with purchase orders at the end of the month/year. We practice a universal work culture in your organization where each staff receiving new stock follows the same method – ensure all boxes are received and unpacked together, accurately counted, and verified.

Anima Web Specializes In Inventory Management

Anima Web uses advanced inventory management software to keep track of your inventory in real-time, prevent excess stock and product shortages, and save your employees precious time.