LESS INVENTORY IMPLIES MORE MONEY

Wondering how inventory reduction increases your business’ bank balance? We are quite used to of the term ‘inventory’ which is an asset to the company, hence, is beneficial too. But as the inventory levels increase for, say a medical store ordering medical supplies, buying the medical supplies in bulk or for any other store/ institution; it creates a situation of excess inventory, slow-moving inventory and non-moving inventory (dead stock). Therefore, inventory regulation and reduction are very significant for businesses to enjoy some advantages and solutions.

Primarily, let’s understand what inventory reduction is while we cope up with the customer demand yet keeping it cost effective. Inventory is required to meet customer’s demand and keeping a separate cost for inventory management was never a business’ objective back when there was less competition in the market. Since the competition is more and there is a growing demand in the market with changing products and features causing the inventory prices to rise. Therefore, inventory reduction saves cost, catches up with profits and increases the focus on other operations in your business.

With some ways, reduce your inventory

That said, reducing your inventories results in cost reduction. And, there are ways to reduce the cost in several areas of the business like

a) Maintenance

b) Storage of inventory

c) Shipping of the inventory

Without the inventory strategy in place, companies can find themselves in a situation either with a shortage of inventory or surplus inventory.

And with the reduced inventory, say less of medical consumable distributors and less medical supplies; you’ll be able to reap the benefits like,

a) Reduced material maintenance and cost

b) Flexible while ordering medical supplies

c) Reduced collection of dead stock or waste

While we all know how to deal and adopt measures to keep a check on our inventories such as their reduction, control, management, encashing dead stock and many other strategies that teach you to put the inventory in place. In the first place, this won’t let you increase or decrease your inventory against the customer’s demand. Secondly, if the excess is still accumulated, there are other alternative means and platforms to display your dead stock such as medical equipment inventory, wholesale medical supplies, sell them at lower prices, resist from wasting them and make money out of them.