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Wholesale Distribution: What are some inventory management myths?

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Question added by Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves
Date Posted: 2016/04/22
Ghada Eweda
by Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

I think that, the most important is profit myths in Wholesale Distribution especially handling Sales, Margins, Inventory, and Expenses. Possibly even most, of what distribution managers know about improving profitability is wrong. Good economic times mask this fact, while challenging times make this fact absolutely dangerous! however managers might need to change the way they think about operation management.

Some mind-set changes are:

• Replacing GMROI as a measurement tool because it almost always leads to incorrect decisions about inventory.

 • Appreciating that bad debts may not always be bad.

 • Understanding that lowering inventory is frequently a bad idea. 

• Accepting that sales growth can be too fast as well as too slow .

• Identifying why most sales force commission plans don't work the way they are supposed to.

MUBARAK INAYTULLA KHAN
by MUBARAK INAYTULLA KHAN , Procurement Manager , UNIT7 CONTRACTING EST. RIYADH.

Agreed and given good example by Ms. Ghada Eweda. Thanks.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

I thank Miss Ghada agreed with them on the answer

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

Agree with Ghada Eweda <<<<<<<<<<<<<<<<<<<<<

Prabin Rai
by Prabin Rai , inventory officer , bijaya motor

agree with all answer given by exports.....

Thanks for the invite I am leave the answers to relevant experts

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