The concept of inventory control and management is an easy one to grasp—determine what to stock, in what quantity, and when to order more. But in practice, things are a little more complicated. Prompt access and delivery of stock is key to keeping your customers happy (leading to more repeat business), but over-stocking can reduce your cash flow and tie up valuable working capital.

So it’s important that you find the right balance between these goals:

1. Reduce inventory investment
2. Meet customer service goals
3. Achieve maximum throughput and cost containment

In short, you need to identify the least amount of inventory you need to meet your customers’ expectations. You need control of your inventory.
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