Free White Paper from NetSuite
As a company that manages inventory, there are a lot of moving parts to account for. Whether you’re just starting out, or have been in business for quite some time, picking an inventory management solution that makes sense for your needs is a critical piece of the puzzle that can make or break your chances for success.
As Michelle Davidson states:
“Research the inventory management systems that you have in place today. Then, come up with a plan that incorporates the software that you need now, and what you’ll need three to five years from now to keep your company streamlined, automated and profitable.”
-Michelle Davidson, Wholesale Distribution Industry Principal, Oracle NetSuite
A major factor in your decision for an inventory management solution is likely inventory turnover. This metric reveals how fast products are moving in and out of your warehouse and creating cash flow.
Brainyard is a website created by NetSuite that provides benchmark information for a variety of industries. According to Brainyard:
“Inventory turnover for wholesalers is a difficult balance. On the one hand, an increase in turnover can result in a company receiving cash more often, but can result in larger carrying costs. On the other hand, just in time inventory is a strategy to reduce carrying costs, but is difficult to achieve unless demand is well defined and predictable. Identifying the optimal inventory turnover depends on the gross margin of your items, type of items sold and seasonality.”
Tips for Picking
- Big picture – taking into consideration point of origin to end user (and everything in between)
- Walk, Crawl, Run – follow a step-by-step approach ensures success from the start
- It all makes sense – making sure to select the best solution from an ideal vendor and at the optimal time
Enjoy this free white paper from NetSuite that describes how organizations can pick an inventory management solution that positions your business for success.