#3- Inventory Management ( Post II)

In #2, we mentioned a few common inventory problems faced by Small and Medium Enterprises. And we intended to summarize the solutions in this post and a few coming positngs.

The very basic solutions are to have a proper stock records, that have keep tracked on the following:
1) Stock Balance information
2) Recording of stock-in
3) Recording of stock-out

We noted that most of the SMEs do not have a proper stock records, and some of the enterprises do not even know the stocks on hand. A proper stocks record enable the owner of the SMEs to develop an understanding on the stock turnover of every single stocks. With such information, the manager is allowed to monitor the purchase more accurately, or even forecast the seasonal sales pattern of respective stocks.

Accumulation of excess stocks represents a cost ( finance cost, maintenance cost), a proper stock movement allow the manager to forms a fundamental basis of developing the Company's purchase pattern without bias (as the manager will be assisted by numerical data).

#2 SME Issues I- Inventory Management

We noted the following current issues faced by SME with respect to Inventory Management:
- Slower inventory turnover, compared to industry standard
- Accumulation of stocks due to lower sales
- High % of obsolete stocks on hand
- Declining market value of stocks on hand
- High maintenance cost, interest expense on inventory
- No proper record of stocks movement, and stock balance
Inventory management plays a vital part of business operations management in business, especially in trading and manufacturing industry. The issues mentioned above have resulted in SME's declining profitability. What are the solutions available ?

#1 Introduction of Small and Medium Enterprises Blog

The ultimate objective of this blog is to:

- identify contemporary issues faced by SME
- construct a comprehensive analysis of the issues
- recommend solutions on the SME issues
- sharing other SME- related informations
- answering queries from reader (our email a/c: mysmeblog@gmail.com)

Should you have any queries or anything to share with all the readers. Kindly email us at mysmeblog@gmail.com.