Wednesday, August 13, 2008

#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 ?

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