Thai freight companies analyze the role of inventory!

In fact, in the process of logistics, our inventory is one of the links, and the main function of inventory is to provide continuous material supply. To effectively implement this feature, your business should strive to find a sweet spot between too much and too little, and never run out of stock. This successful balance will improve cash flow and profitability, and keep your company running smoothly. This is an indispensable part of logistics. So now it's up to youThai freight companyWhat is the function of logistics inventory!

Excessive inventory

The function of inventory in Thai freight companies is to have what you need when you need it, rather than accumulating more than you can use. The goal is to retain the quantity of your business only within a reasonable time frame. The inventory turnover rate has industry averages, which provide useful guidance and target amounts. It is more important for your business to maintain sufficient supply without causing chaos, rather than meeting the average benchmark of the target. If you purchase and store too much inventory, your cash flow may be affected as your cash is tied up in unused or unsold items on your shelves rather than directly needed, such as rent and wages. Excessive inventory can also cost you money during storage and handling, and the space occupied can be better used for other purposes.

2. Insufficient inventory

If you don't have enough inventory, you won't be able to meet customers' needs, and they will eventually take their business elsewhere. This kind of business loss may not only be a problem of losing specific sales on a certain day, but also result in long-term business losses if customers start to believe that other alternatives are more reliable. Maintaining a lower inventory level can save on purchasing costs, but it will result in a loss of more sales revenue if you don't have enough products to sell.

Three successful inventory management methods

If Thai freight companies successfully develop management and replacement supply systems, inventory levels will most effectively meet their objectives. Create a measure of the optimal inventory level based on sales records and time. Identify the key points that you should reorder and introduce a digital or paper system to communicate with the procurement department when inventory levels drop below these points. Establish relationships with suppliers so that if your demand suddenly surges, you can quickly replenish your inventory. You can pay extra for extra inventory, as long as you use cheaper options as your default, you won't let the stock fall to unstable levels.

Not only is the inventory process important in logistics, but other processes are also equally important, so logistics personnel are becoming increasingly mechanized, Many jobs can be replaced by machines instead of manual labor! The above is the content shared by the Thai freight company, which needs to be understoodThai freight companyFor more logistics inventory functions, you need to log in:http://www.thaifitto.com