It's hard to get anywhere in business without complete transparency about what your assets are and how they're appreciating or declining over time. This is true in a financial sense, obviously, but it also applies to much more than just money. Consider the process of managing your inventory, for example. Do you know exactly what materials and supplies you have on hand? This knowledge is an essential part of managing any organisation.
Let's go over the common difficulties that companies face in inventory management and how you can overcome them.
Faulty tracking can be a nuisance
When companies have trouble with their accounting practises and start to lose control of their operations, it's not always because they're having trouble managing money. Inventory can be just as important.
Do you know exactly what materials and supplies you have on hand?
Inaccurate inventory tracking can spell real trouble for a business. If you're running a retail operation and you don't have the stock to meet customer demand, that can disrupt profitability in a hurry. Internally, if you're handling a manufacturing process but lack the raw materials to finish it, you risk jeopardising business continuity.
It's important to have your priorities straight as you run your business. For example, Entrepreneur magazine reported recently that in retail, the typical store sees 80 per cent of its demand come from just 20 per cent of its items. With this in mind, it makes sense for managers to key in on this top 20 per cent and do everything in their power to keep it well stocked.
Accurately kWhat should you look for in a system?
Your company will undoubtedly be in better shape if you have a comprehensive accounting system that's able to keep accurate records of all your assets. Look for a solution that offers all of the following:
- Clear names and labels for all of your assets
- Real-time tracking of all activities, internal and external, that might change your supply levels
- Visibility of data for everyone in your organisation who needs it
- A system that enforces accountability and ensures that your employees meet their inventory management responsibilities
If you're looking for a solution that can meet all of the above demands, you need look no further than Jiwa Financials. What you get from Jiwa Financials is a scalable solution that's capable of growing as your business does. Our software was built from the ground up with an emphasis on meeting all of Australia and New Zealand's strict regulatory requirements, so you can rest assured that it will be effective in whatever markets you operate in.
