All inventory is categorized and arranged by client, project, and category.

Our process involves daily floor organization based on project timelines and ship dates. 

Our quality controls ensure all inbound and outbound shipments are carefully inspected and documented.

Our warehouse is locked and secured at all times, with no unauthorized access or foot traffic. Security systems monitor the entire facility.

Inventory management refers to the process of ordering, storing, using, and selling a company’s inventory. It involves managing the stock mix of a company and understanding the different demands on that stock. The goal of inventory management is to efficiently streamline inventories to avoid both excess inventory and shortages.

An important aspect of inventory management includes the types of inventory. Inventory management encompasses the management of raw materials, components, and finished products. It includes tracking inventory from manufacturers to warehouses and from these facilities to the point of sale.

There are different methods of inventory management, each with its pros and cons.

Some common methods include:

This method aims to minimize inventory levels by ordering and receiving goods just in time for production or sale.

This method involves calculating the materials needed for production based on demand forecasts, and scheduling orders accordingly.

This method determines the optimal order quantity that minimized total inventory costs. Factors for consideration include ordering costs and carrying costs.

This method measures the average number of days it takes for inventory to be sold, helping to asses inventory turnover.

Overall, inventory management plays a crucial role in ensuring that businesses have the right amount of stock at the right time, minimizing costs and maximizing efficiencies.

Effective inventory management offers several benefits, including:

• Avoiding excess inventory and reducing carrying costs
• Minimizing stock-outs and ensuring product availability.
• Improving order accuracy and fulfillment.
• Optimizing cash flow and reducing capital tied up in inventory.

Inventory management involves several costs that businesses need to consider. Effective inventory management can help businesses minimize these costs and maximize profits. By optimizing inventory levels, businesses can reduce holding costs, avoid stock-outs, and minimize obsolete inventory costs.

Ordering costs can vary depending on the size and complexity of the order. These are the costs associated with placing and receiving orders for inventory, such as purchase order processing, shipping, and receiving.

Holding costs are the costs associated with storing and managing inventory, including rent, utilities, insurance, and labor. These costs can add up quickly, especially if inventory is stored for long periods.

Shortage costs are the costs associated with running out of stock, such as lost sales, backorders, and expedited shipping fees. These costs can be significant, especially if a business experiences frequent stock-outs.

Obsolete inventory costs are the costs associated with holding inventory that is no longer in demand or has become outdated. These costs can include storage fees, write-offs, and disposal costs.

Opportunity costs refer to the potential revenue that a business could have earned if the capital tied up in inventory had been invested elsewhere. This cost is often overlooked but can be significant, especially for businesses with limited resources.

There are several strategies that businesses can use to reduce inventory costs. It’s important to note that these strategies are interrelated and should be implemented together for the best results. By implementing these strategies, businesses can reduce inventory costs and improve profitability.

Here are some of the most effective strategies:

Accurately forecasting customer demand is critical to reducing excess inventory. By forecasting true demand instead of sales, businesses can avoid overstocking or understocking inventory

JIT scheduling involves producing or ordering inventory just in time for production or sale. This strategy can help businesses reduce inventory levels and minimize holding costs.

Kitting involves bundling low-demand products with high-demand products to help clear out slow-moving inventory. This strategy can help businesses reduce inventory levels and minimize holding costs.

Optimizing inventory management involves using data to make informed decisions about inventory levels, reorder points, and safety stock. By optimizing inventory management, businesses can reduce excess inventory and minimize holding costs.

Reducing lead times can help businesses minimize the time between placing an order and receiving inventory. This strategy can help businesses reduce inventory levels and minimize holding costs.

Obsolete inventory can be a significant cost for businesses. By getting rid of obsolete inventory, businesses can free up space and reduce holding costs

Bundling dead stock with other products can help businesses clear out slow-moving inventory and reduce holding costs.