There are few topics as capable of producing catatonia as inventory. And few topics as vital to the health of a business.
Bottom line, inventory is about counting, of course.
The principle is that what you measure (accurately), you can control. If you cannot (or do not … or will not … ) accurately measure your stock – inputs, WIP (for manufacturers), and outputs – then you cannot (or do not … or will not …) exercise positive control of your business.
As we say in the software development business, if you do not actively manage risks then they will actively manage you. Your risks associated with inventory are:
- Not having enough of the stuff that you need
- Having too much of the stuff that you don’t need
… and every other problem is a combination of 1 and 2.
For the next several blogposts here, we will pick apart the inventory process – what it takes to do it right and what to do with the data once you get it.
… so … tune back in …
more anon ….
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