The storage capacity of the warehouse

The storage capacity of the warehouse cannot be increased solely by the factory shelves, but some warehouse management methods are needed. Next, shelf factories share effective inventory management methods.

1. Establish a good relationship with suppliers: cultivate long-term trustworthy suppliers, get priority in obtaining materials, and ensure delivery time. In this way, companies do not need to hoard a lot of goods to prevent shortages.

2. Not afraid of out of stock: Out of stock is not terrible. Out of stock at least proves that the company does not consume costs because of excessive inventory. A company that will never be out of stock is probably just because it has accumulated too much inventory.

3. Customer-oriented products: Communicate with customers, fully understand the types and quantities of goods they need, and formulate accurate and detailed sales forecasts through comparative analysis, and manufacture and produce accordingly. Sell ??surplus inventory: The company cannot guarantee that the quantity of all materials purchased is accurate. When the company has a large amount of material remaining and will not be used again in the near future, it may as well resell these materials to other companies.

4. Choose the critical point of inventory purchase: constantly check the company’s warehouse, and only purchase goods when it is unbearable each time, instead of regularly timing purchases, so as to avoid the accumulation of large amounts of materials in the enterprise warehouse.

Heavy-duty shelves in a shelf factory

The cost of inventory consumption is mainly divided into the following categories:

Capital occupation expenses: mainly refers to loan interest expenses and related opportunity costs, which are the main part of inventory costs.

Inventory site cost: refers to the site cost for the storage of goods, such as the electricity and water fees of the site.
Inventory management cost: refers to the cost of inventory management, mainly including the salary of management personnel.
Inventory loss cost: Refers to the damage that occurs during the storage of the item, such as the loss caused by deterioration and loss.

Inventory management is the magic weapon to awaken this “money”, mainly in three aspects:

1. Grasp the current inventory: When accepting orders or during the process of manufacturing and selling products, companies must understand the current inventory situation and determine the production and operation policy according to the inventory situation to avoid failure to deliver on time.

2. Accurately reflect the amount of inventory: When an enterprise conducts year-end accounting, it must accurately calculate the amount of inventory, otherwise it will easily cause financial confusion and affect budgeting.

3. Reduce the cost of inventory: Through the management of the inventory link, the inventory cost will be controlled within a reasonable range as much as possible to reduce the cost of inventory.