Inventory management of products

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As an agency, you have two options to store materials, supplies, and equipment. You can select general warehouse space, or full service materials management, which includes the space, materials handling, and inventory management and reporting.

Inventory My Products

A full service materials management and warehousing includes the Logistics staff managing the agency inventory after the agency completes the request into the supplier. This service includes receiving, storage, packaging, distribution, and inventory management of agency commodities. The actual shipping cost is a direct expense to the agency.

Successful inventory management involves balancing the costs of inventory with the benefits of inventory. Many small business owners fail to appreciate fully the true costs of carrying inventory, which include not only direct costs of storage, insurance and taxes, but also the cost of money tied up in inventory. This fine line between keeping too much inventory and not enough is not the manager's only concern. Others include:

The degree of success in addressing these concerns is easier to gauge for some than for others. For example, computing the inventory turnover ratio is a simple measure of managerial performance. This value gives a rough guideline by which managers can set goals and evaluate performance, but it must be realized that the turnover rate varies with the function of inventory, the type of business and how the ratio is calculated. Average inventory turnover ratios for individual industries can be obtained from trade associations.

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About Keeping Track of Inventory