How does inventory control help management to coordinate and plan business activities?with examples
Inventory control helps in this process because it allows the management to have the proper amount of materials on hand at all times and to have those materials readily accessible. This makes the process of coordinating and planning business activities much easier.
Management needs to have the proper amounts of materials so that they can run their business smoothly. They have to ensure that they will not run out of necessary materials at any time. Through effective inventory control, management can ensure that they will be able to plan effectively and to carry out those plans without being slowed down by lack of materials or by the inability to access those materials quickly.
I am the manager at 1800 Radiator & A/C franchise facility of Salinas, Ca, it is very important that I know what we have on hand at all times. I know what merchandise is required the most and least by customers, knowing that is how I work my activities. My warehouse manager and I communicate on a daily basis when we are runing low on inventory of a certain product. If this item is a hot item and we do not have enough inventory stock of it, it will not only pottentialy lose us a customer but also place our customer on hold for a day.
Knowing how your personal inventory works and the potential and difficulties or loses it may bring is very important. Every business works differently but they key is to know your products and customers.