In business dominate the belief:
The cheaper (at a substantial discount) will buy, the more money will earn...
Why think so?
The seller's profit margin is the difference between sales and the purchase price. Therefore, many believes that the goods purchased as cheaply as possible, will earn more money selling it. Our cowboy thinks and behaves in this way when ordering goods in large batches and obtaining a good discount.
Cowboy also knows that the lack of goods (inventory) means lost sales. He prevents ordering large batches, because only then can receive substantial discounts from suppliers. However, customers with different needs and growing inventory levels, driven cowboy on the desperation and clearance sales.
Normally traders solves the situation in the following ways:
- to improve the forecasting (what customers what goods will buy);
- at large batches orders only marketable goods;
- refuses of unmarketable goods.
Biggest problems of inventory management are associated with ill effects of inventory management: shortage of inventory or its surplus. In the latter case, a large quantity of stock reduces any company's competitiveness, there is a depreciation of the goods, the physical and moral wear and tear, ultimately the product expiry and cancellation.
However, much more painful consequences (though not visible in reality) arises from the lack of goods. Many companies claim that they does not lose sales, but experience shows that the loss sales because of the lack of goods storage in average ranges from 10 to 20 percent of all company sales.
Would you like to find out how your company could: dramatically reduce the disadvantages of marketable goods, thereby reducing inventory and improving their negotiable; reduce the loss of moral and physical outdated goods, don't lose sales and release of the working funds?
Let's meet and talk, perhaps together we can achieve results faster?
During the meeting Nerius Jasinavičius, the head of the business consulting company "TOC Sprendimai" will present how to improve your inventory turns and return on invested capital to increase company sales and the release of working capital funds.
Holy cows in business
- The cheaper (at a substantial discount) will buy, the more money will earn...
- Declining sales will save supersalesman-artist...
- If you want that the project would be completed in time, it's necessary to complete every work on time...
- Resources that doesn't work is a major waste of money...
- For client most important is the price...
