In the Prairie Business article, “The importance of inventory management,” author Matthew Mohr describes a common problem all businesses must solve – how to maintain the right balance of products on hand.
Mohr makes the point that companies often prefer to stock up on a large amount of inventory for fear of losing a sale because they don’t have enough inventory to fill an order immediately. Unfortunately, this strategy can backfire. Companies can wind up losing money on their large inventory if their customers’ tastes change dramatically, making their inventory obsolete or worthless.
The point is companies often can’t effectively control their inventory levels without some form of inventory management software. The most popular manufacturing and warehouse management solution for QuickBooks is Fishbowl. It helps small businesses manage their current inventory and plan ahead for all of their inventory needs.