Inventory Control in San Diego

Inventory control in San Diego is important to the health and prosperity of any business. A company’s inventory should provide a reasonable assortment of its products and be large enough to cover the normal sales demands of your every day business.

When determining the basic stock needs of your company, you need to factor in the lead time of a product. The lead time is the time it takes from when you reorder a product until you actually receive that product. For example, if the lead time of a product is two week and you usually sell 10 units per week, then you must order when you basic stock of that product falls below 20. If you do not order in time, you may be without that product and miss out on some potential sales. Proper inventory control in San Diego depends on constant vigilance of your inventory.

Because constant vigilance, there are two basic ways to avoid running out of a product. The first is to install reputable inventory control software. Software will automatically watch inventory levels and can alert you if product levels fall below a a specifically designated levels. The cost of good inventory software is worth it as it can save your company plenty of money over the years.

When maintaining inventory control in San Diego, the other way to ensure proper product levels is to build a safety margin into your basic inventory numbers. Building the right safety margin can mean the difference between profit and loss. To get the right amount, you need to think about all the possibilities, such as delays, increased sales on seasonal products, or any other influences or factors that may substantially increase sales or lead times.

Though having a safety margin is important, it is also essential to avoid having too much excess inventory on hand. Having excess inventory can results in increased overhead costs. Estimates peg the increased cost of maintaining excess inventory at anywhere from 10 to 30 percent of the original cost of the inventory. Profitable inventory control in San Diego is dependent on having just the right amount of inventory, neither too little or too much.

There are many factors that affect the health of a business and having the proper amount of inventory in stock is one of the most important. Any company that sells products must have that product on hand to make a sale. Even online retailers lose business if a product is back ordered. Shoppers want their products and they want then now, whether it is in person or online. Maintaining the proper amount of product and having a good system of inventory control in San Diego will give you an edge on the competition.

Inventory Control in San Diego