Monday, November 24, 2008

Controlling inventory is the Key

Slowing down of economy has prompted in breaking the brain of many masterminds! Yes, there seem to have hardly any option left to stop the negative impact of this catastrophe of economy. Almost all the establishments have tried all short of possible options to check the damages but the worsening situation has widen the possibility of mending the damages.

In this situation, efficient practice would be taking the right decision instantly and implement the same within no time lapse. When I say the right decision, you may ask - what could be the right decision at this point of time?... Well, I would suggest few points which may be helpful to you to take right decision. But, keep in mind that to be greedy at this juncture will further stop you from implementing the policy which will help you to keep going unaffected even in this economic condition.

1. Do not stress the production to the maximum but keep at the optimum level where you feel comfortable in terms of meeting the demand of the market. For this, you have see to it that correct assessment is been made by reviewing the trend as well as projection.

2. By optimising production you can also plan plant working cycle in such a way that limited people can be deployed by assessing the importance of the personnel engaged in the shop floor so that the work is not been disturbed by laying off excess workforce. At the same time you will get better production as a result of optimising.

3. Once you plan the plant working cycle to the optimum, you will get time for maintenance to avoid the breakdown caused due to human error. This is actually the time for strengthening the internal maintenance with the resources available. Everybody should realise the importance of time, money and assets available.

4. Inventory of any kind should be planned in such a way that you stop procuring anything which are for tomorrow, at least till the situation is improved. At the same time, never stop looking out for most economical way to procure efficiently.

5. You should work at optimum profitability rather than looking at the premium earning. This is the time for selling the goods in response to meet the demand and not forgetting the basics of vendor relationship and exposing minimum credit. So, you might have to sacrifice the premium what you are earning by reducing the credit term.

Change is inevitable.. The faster you implement the change you stand strong more firm. We should keep in mind the saying Noting is constant in this universe except change. For change you have to zero yourselves and allow change to come in you.

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