Five Steps to Painless Inventory Management

Inventory management is not the sort of thing that gets most entrepreneurs' blood flowing--until their inventory manager leaves. That's exactly what happened to Marc Isaacson, the CEO of online integrative pharmacy Village Green Apothecary, in 2008. Isaacson filled the position by promoting a purchasing assistant. Before long, the company was running out of its most popular items. "At the very least, we lost those particular sales and in some cases, we lost the customers," Isaacson says. He estimates the total loss at 2% to 3% of sales.

Isaacson's first fix was to start using a "blue dot" system: putting a blue dot next to each of his approximately 1,000 best-selling items, making them easier to identify, and requiring three to four weeks' of stock for each. About 2% of Village Green's inventory used to be out of stock at any given time; after using blue dot, that number came down to just 0.5%.


Read full article
 

What did you think of this article?




Trackbacks
  • No trackbacks exist for this post.
Comments
  • No comments exist for this post.
Leave a comment

Comments are closed.