For companies that have to carry inventory, regardless of their size or industry, how those companies manage and acquire inventory either creates tremendous opportunity or presents significant risk.
Proper procurement processes and inventory management create operational efficiencies, improve how a company is able to deliver its products and services to the market, and reduce costs associated with product and service delivery. Consequently, poor procurement processes and improper inventory management can present significant challenges to the growth and sustainability of a company even during highly favorable business climates.
Important also is the procurement and management of non-inventory items that are essential to the operation of the business. Behind the scenes, these items can have a significant positive or negative effect on costs associated with delivering products and services and can also have an impact overhead spend.
So what are the basics of managing inventory and procurement and how can small, privately-held companies implement strategy, processes, and systems on limited budgets to compete in ever-changing markets?