There are few topics as capable of producing catatonia as inventory. And few topics as vital to the health of a business.
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.
- 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 ….