How Inventory Planning Can Make or Break a Company

Inventory planning is something that can seem like just another process of business management, but it can often be the deciding factor in how successful a company is, making it an essential aspect of whether or not a company can make it or break it in the business world. The reason for this is that in most cases, the inventory of a company can be the largest expense and if it isn't carefully managed and planned accordingly, it leaves your company with a very precarious hold on the overall revenue. To get a better idea of why this is the case, we've put together the top 3 reasons why inventory planning is vital to the overall success of your company.

Protect Your Inventory from Theft through Inventory Planning

This reason can often get marginalized, but theft or pilfering is a bigger problem than many businesses realize. You could be losing millions of dollars a year (that is a very conservative number based upon a small to medium sized company) from theft or pilfering and the only way to effectively combat it is to know exactly what your inventory is, where it is going and who has access to it. The more you know about your inventory, the more you will be able to spot and impede further theft or pilfering of your inventory.

Inventory Planning Reduces the Risk of Overstocking and Lost Sales

When your business doesn't follow a proper inventory planning procedure, your inventory is more likely to either be in overabundance or insufficient for the amount of customers willing to purchase the product. This can cause damaging losses in revenue for three reasons: because of stock sitting on a warehouse shelf with no buyer to speak of, buyers unable to purchase products because of a lack of available inventory, or customers cancelling orders already placed due to a long wait on actually receiving the products. However, through the use of inventory planning services, you can have an inventory that is carefully planned to optimize your distribution process so that you have the inventory you need and nothing more. This will increase the overall revenue of your company, allowing it to have a better chance at succeeding in your business sector.

Insure Customer Satisfaction with a Supply Process by Using Inventory Planning

When a business has an inventory that is mismanaged or not thoroughly planned out, there is a far higher likelihood of delays in the distribution process, causing increased customer dissatisfaction that can damage your business reputation and your bottom line. By using inventory planning and its sister service, inventory management, you can have an inventory that is always where it needs to be and always in the exact numbers that are required. When the inventory is properly maintained, the distribution of products runs smoothly, shipping your inventory to customers in an efficient and timely manner so that your customers stay happy and willing to return for further orders.

Find Professional Inventory Planning Services

Inventory planning is a vital necessity in the business world, so let a professional company take care of planning and managing your inventory so that you can focus on other aspects of making your business succeed.

Feel free to contact for Supply Chain Planning, Sales and Operations Planning, demand planning, factory planning & scheduling.