Importance of Inventory Management
The benefits of inventory management are vital for enhancing product quality, improving competitive ability, reducing inventory carrying costs by reducing inventories, service enhancement, and operational flexibility through pull systems.
14 Benefits of Inventory Management and Control –
1. Inventory control paves for competitive ability
2. Inventory planning improves service level
3. Inventory planning and management reduces storage cost
4. High inventory turnover brings revenues
5. You can utilize warehouse space better
6. Inventory control makes cost accounting activities easier
7. Inventory control is consistent with safety and economic advantage
8. Regular supply at reasonable prices builds customer confidence
9. Inventory holding results in effective utilization of human and equipment
10. Effective inventory control enhances market share
11. Inventory control improves product quality
12. Effective inventory control brings the potential saving
13. Inventory control avoids costly interruptions in operation
14. Inventory control strategy facilitates purchase economies