Image credit: Nick Saltmarsh
For any business that sells a physical product, inventory levels are always at the forefront of concerns – how much is too much? How little is too little? You don’t want unnecessary stock taking up valuable space on your racking and shelving, but you also don’t want to lose out on sales because you didn’t have enough inventory – striking the balance is tricky and can take years to get it even close to correct.
Many businesses worry particularly about having too much stock because, while inventory is an asset, too much of it is dead weight. So while lowering inventory can be good, it should never be undertaken lightly or indiscriminately.
Some of the issues you should consider before charging head-on into reducing your stock levels are seasonality; supply and demand; lead time for your clients as well as lead time from your own suppliers; modes of transportation and delivery, and many more. There is no way that we can always account for every variable when evaluating inventory levels, but we should take as many of them into account as we can.
If you’re looking to reduce the stock on your racking and shelving, have a look at our infographic on how to reduce stock levels without reducing revenue:
Contact us today for invaluable advice on how to make the most of your storage space. We manufacture quality racking and shelving systems, and we do installations that cause minimal disruption to work and production. We also install mezzanine flooring and manufacture durable steel lockers. For all of your needs in racking and shelving, from Cape Town to Swaziland, contact us today!