ALL >> Hardware-Software >> View Article
Is Your Inventory Valued As ‘cash’ In Your Warehouse?

Treating inventory as ‘CASH’ is crucial for SMEs. About 20% of stock is often overlooked, leading to non-moving or damaged goods. This oversight inflates profits on sheets, not in the bank. Shifting perspective transforms handling — vigilance, daily counts, and prevention of obsolescence.
To keep inventory liquid, maintain optimal levels, preventing excess. Unfortunately, many lack a strategy, resulting in millions blocked in surplus stock.
There are two main reasons contribute to funds being locked in inventory:
Ignorance of Ideal Inventory: SMEs suffer from excess inventory, unaware of the ideal quantity. Calculating the ‘ideal inventory’ involves determining the Expected Delivery Time (EDT) and Total Lead Time (TLT). Engage consultants and use business intelligence tools for accurate computations.
Overproduction: Organizations often produce more than they can sell, relying on outdated sales projections. Monthly reviews, early warning systems, and analytics solutions aligned with actual sales trends can prevent excessive production and procurement.
Addressing these issues ensures millions locked in inventory can be released and boost the bottom line. Stay tuned for more insights in my next blog.
To read the detailed article visit: https://bicxo.co/blog/inventory-is-cash-in-your-godown-are-you-treating-it-as-one/
To know more click here: https://bicxo.co/
Add Comment
Hardware/Software Articles
1. What Is Ansible In Devops?Author: Jan Khan
2. Choosing The Best Erp Software For Your Manufacturing Business
Author: Ahesanali
3. Chchoosing The Best Erp Software For Your Manufacturing Businessoosing The Best Erp Software For Your Manufacturing Business
Author: Ahesanali
4. Amazon Seller Fba Tools: Finding Profitable Products Using Fba Tools In 2025
Author: kanhasoft
5. Key Benefits Of Project Cost Tracking Software For Efficient Project Management
Author: prestartr
6. Why Odoo Implementation Fails And How To Ensure Success
Author: Hetal V.
7. 10 Must-track Metrics (2025) For Sales Data Model
Author: BiCXO
8. How Finance And Business Analytics Is Revolutionizing Finance In 2025
Author: BiCXO
9. What To Consider When Selecting A Reconciliation Software?
Author: BiCXO
10. Ensuring Erp User Adoption: Training And Change Management
Author: Dipanjan Das
11. Odoo Erp Vs. Other Erp Solutions: What Makes It Stand Out?
Author: Hetal V.
12. Top Tips To Improve Ecommerce Customer Support Services
Author: Kuldeep Singh Tomar
13. White Label Polymarket Clone Scripts: Key Features And Advantages For Entrepreneurs
Author: judemaxwell
14. How Alumni Engagement Programs Boost University Reputation And Enrollment
Author: Brenda Joyce
15. Reducing Errors In Law Enforcement: The Precision Of Electronic Warrants
Author: Edwin