Your inventory is one of your business’s most important assets. Being raised on a farm and in the agricultural machinery business, I quickly learn the value of a good inventory and parts manager to attract and retain customers. Imagine a farmer with a million-dollar header harvester broken down for days during the critical harvest period for want of an oil seal or a broken sprocket. You also quickly learn that the money will follow if you get customer service right.

If inventory management is poor, it can soon lead to a downfall in sales and profitability. The inventory management system should be a powerful tool to manage and measure the overall success of your inventory. Good inventory management strategies can provide you with many benefits:

• Your customers receive a higher level of service.
• A better customer experience can be created.
• Cash flow is improved.
• Profitability is increased.
• Suppliers know where they stand and are more inclined to help.
• There will be less shrinkage.
• The dead stock does not build up.
• Your inventory asset will be maintained in better shape.

Your inventory is one of your most important assets, and if managed properly, it makes life easy. If handled poorly, it only leads to problems and frustrations for everyone involved with the business. A well-run inventory system helps with planning, cash flow and achieving your budget.

Ensure your inventory speaks about the benefits of buying your product rather than the inventory itself. Customers don’t care about how much inventory you carry. They care about getting what they want when they want it and without any fuss.

Every business has inventory.

• Raw materials.
• Whole goods.
• Spare parts.
• Manufacturing consumables.
• Office consumables.
• Lay-buys.