Once inventory drops below a certain par level, you know it’s time to order more and avoid having either too much or too little in stock.Įstablishing accurate par levels requires thorough analysis on your part otherwise, they’re simply arbitrary rules that won’t help your business. Par levels set a benchmark that makes the decision to order more inventory automatic, rather than dependent on guesswork. Par levels keep you from being reactive, so you’re not buying a ton of product one month and then scrambling to refill your inventory the next. Setting accurate par levels will help you dramatically boost the efficiency of your logistics operation.
Par levels refers to the minimum amount of product that you need to have on hand at any given time. 5 tips for better inventory management at small businesses 1. Follow the below five tips to cut costs across your small business by 10% over the next two years. Small business owners who carry excess inventory pay an extra 30% in costs per year compared to companies operating at optimal inventory levels. The good news is that there are a few things you can do to better handle issues that come up and to avoid problems related to excess inventory.īetter inventory management for small businesses is a must Inventory management hiccups can result in carry cost increases, product depreciation, higher insurance, more worker overtime, and chaos on the factory floor. When you’re a small business, inventory management quickly becomes overwhelming and expensive.Ī shipment you weren’t expecting until next Tuesday shows up on your doorstep, and you’ve got to figure out where to put dozens of 50-pound boxes of product, all without interfering with your workers or your finely tuned logistics operation.
0 kommentar(er)
