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True or false: Inventory management techniques can make or break your business?

If stock levels and inventory are not properly managed, this could very well hinder cash flow, chalk up holding costs, time and labour wastage, inefficiency in supply chain and sales cycles, disappointed customers, and lost sales.

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Question added by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive
Date Posted: 2015/03/07
Hany Helmy Haleem
by Hany Helmy Haleem , Director of Warehouses , Nasco Automotive

Answer is true, If stock levels and inventory are not properly managed, this could very well hinder cash flow, chalk up holding costs, time and labour wastage, inefficiency in supply chain and sales cycles, disappointed customers, and lost sales

best regards

Abd alwahab Alqaramseh
by Abd alwahab Alqaramseh , Material Section Head , CEGCO

yes it true the inventory in any organization is a member in the team like HR , maintenance , finance , .... etc , and the team is like a chain , any weakness in any ring will reflect on the  main target of the organization 

Abdou warshan
by Abdou warshan , • مدير إدارة المخازن والنقل , شركة تمكين الدولية للأجهزة المنزلية

it's true because efficient management of Inventory has played a vital role in deciding a firm’s ability to operate with good profit margins. High Inventory Turnover ratio indicates that a company is efficient in managing its inventories and is having high sales. Having no prior knowledge of financial concepts or relevant industry experience,  Having low inventory might often result in company not being able to meet the committed service levels, which obviously means that more often than not, customers will be sent back without the product they wanted or would be directed to other stores

Ani Kuriakose
by Ani Kuriakose , Managing Partner – SCM , A. A. Associates

Absolutely True.

In the modern age of JIT, Inventory management techniques not only provide financial & inventory control but also vital data feedback for management and sales plans.

Lack of property inventory management can lead to disastrous consequences such as

  • overstocking,
  • pilferage, damaged goods, defective goods,
  • stockouts, etc

all of which lead to blocking of funds and waste of precious resources, ultimately leading to dissatisfied customer and loss of sales. i,e, (the death knell for any organisation)

FOWZY seraj
by FOWZY seraj , project manager , APSG in King Abdul-Aziz Airport (Hajj Terminal )

 Inventory management techniques can make or break your business?

true . 

 

 

 

 

 

 

ISLAM ADAM
by ISLAM ADAM , warehousing department Manger , Arabian Milling and Food industries Company

Totally correct . it is a fact

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Answer is False <<<<<<<<<<<<<<<<<<<<<<<

AHMED IMRUL KAYES
by AHMED IMRUL KAYES , Senior Consultant , HR Bangladesh Ltd.

This relates to continuous development of your company.  As much as you are developing you build up your inventory management . In my experience i have seen some farms they deliver goods straight from the production line as they don't feel for inventory management . But of course this should no be for all farms. This is a very crucial policy to build up inventory management. Otherwise, ya your business may be affected specially if your market may need the product as to FIFO or LIFO method.

Shujaat Ali
by Shujaat Ali , Territory Business Manager , Dadex Eternit Limited

I think, its true when you are managing it at your premises. Now no need to manage all these at your premises, third party is providing services for Inventory Management, Storage and Physical Distribution. So don't worry, just chill. 

Larry Lacerna
by Larry Lacerna , Senior Executive Secretary to the Vice President , Olayan Financing Company

True, as it links to all division of the company including finances.

Sadiq ul Islam
by Sadiq ul Islam , Financial Controller , BinDawood Holding Company (BDH)

True.

 

In current era, where most of the production industries are at Maturity stage (in Product/Industry Life Cycle), cost cutting has become one of core competencies to survive or succeed.Inventory Management not only helps in cost cutting in form of reduction in ordering cost, holding cost, obselence, damages, defective goods, but also helps in customer satisfaction, reducing inefficiencies of value/supply chain management.

 

 

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