This blog post represents a first in my history of blogging. It’s the first post I’ve ever written based on a tweet. I usually glean information from links people include in their tweets, but in this case a brief statement by Bob Palmer inspired me to action.
In his tweet, Palmer says, “Inventory Management isn’t just about minimizing inventory and maximizing turns. Customer service ranks too.” It’s simply stated and packed with implications.
What’s the end goal of inventory management? This question could be answered in many ways. For some businesses, the goal of inventory management could be to maximize efficiency or cut costs. But I agree with Palmer that one of its main goals should be to help companies do a better job of meeting their customers’ needs.
The Big Picture
It’s easy to get lost in the details of managing inventory, so we should take a step back and look at the big picture. On the surface, inventory management is the process of organizing and keeping just enough products in stock to meet demand. However, if you put inventory management in its proper context, you’ll see that it is a tool businesses use to better serve their customers.
Businesspeople have to worry about many things, including locations, employees, finances, marketing, customer service and inventory management. Inventory management is by no means a small part of a business’ operations, but it is but one of many essential functions that must work in conjunction with others.
I’m grateful to Palmer for reminding me about the main focus of inventory management’s complex processes. It’s to get the right products into customers’ hands and make sure your customers are happy doing business with you.
The Way to Do It
Inventory management software, like Fishbowl, is one of the best ways to make sure you manage inventory effectively. It makes many of the processes automatic so you don’t have to remember all of the little details involved in reordering products, picking, packing and shipping them, and handling product transfers.
This is probably a topic I’ll revisit in the future. There could be a whole list of priorities inventory management deals with. For now, I’ll invite you to learn more about Fishbowl and how it can strengthen your business.