Arnon Dror – Enhance Your Bottom-Line Profits with Suitable Inventory Management Techniques

Arnon Dror is a very successful businessman in the financial world. This MBA graduate has the distinction of serving as a Vice-President in many credible companies. These include organizations such as Scitex, Creo Inc., Xerox, Kodak, Creo Americas and Presstek. He is currently a Senior Operations Executive with Janus Technologies. His colleagues say he is a very decisive leader with a result-oriented approach to his work. They say people just need to look at his track record in the area of corporate reconstruction. They’ll come to know he is an expert in turning many businesses into profit-making concerns.

Arnon Dror – How can entrepreneurs improve their inventory management?

This financial expert says entrepreneurs need to adequate inventory in the premises for obvious reasons. Without a viable product to sell in the market, they can’t operate their businesses. However, these businessmen got to know how much stock they need to keep on their premises. Too much of it can occupy unnecessary shelf space in their warehouse. This can increase their operating expenses. They’ll end up paying more for insurance, storage, and distribution. Again, they won’t be able to meet the demands of their customers if they don’t have enough. They’ll end up losing these individuals to their competitors. It’s the last thing they want. This is where proper inventory management comes into the picture.

Arnon Dror says entrepreneurs need to understand an important fact. Proper inventory management is essential to the success of their businesses. It can influence the amount of profit they earn when conducting its market operation. Unfortunately, it is not an easy task to accomplish. Many of these businessmen may not have the flair can make such precise estimate. In such a case, they should implement the following 3 important techniques:

  1. Identify slow-selling products

Entrepreneurs should make a thorough analysis of their current stock. They should make a list of products in their warehouse for more than 90 days. These are the slow-selling items which their customers don’t want. These businessmen shouldn’t take the trouble of purchasing such goods in the future. It’s a waste of money as they won’t be able to resell them. Disposing of them at very low costs is prudent. They could also give them away as free samples.

  1. Adopt the FIFO (first-in-first-out) approach

These proprietors should seriously consider adopting the FIFO technique. Contrary to what they think, it is also suitable for businessmen dealing in non-perishable products. It ensures they don’t end up with obsolete items over time. They can remain in touch with what their customers really want.

  1. Conduct periodic audit

Entrepreneurs should make it a point to carry out an audit of their products in their inventory. It can help them identify any discrepancies and avoidable losses. Products which are physically present in their warehouse should match with their records. If this is not the case, there is something wrong.

Arnon Dror says implementing above 3 important inventory management techniques can do wonders for entrepreneurs. Taking such a step can increase their bottom-line profits beyond their expectations. This can come to a complete surprise for them. They won’t regret taking such a decision