Ten Deadly Sins of Inventory

As I’ve been blogging to share insights into the area of Inventory management, I have had the privilege of receiving comments from many inventory and supply chain professionals.  One such contributor is , who is a Sr. Supply Chain Professional and Professor of Supply Chain.  Below is Stuart’s article, “Ten Deadly Sins of Inventory” which I trust you will find to be helpful……ENJOY!

warehouse image

In religious circles there are the Ten Commandments.  Well, in Inventory Management there are the ten deadly sins of inventory mis-management.  If you are struggling to meet customer demand, and you are losing customers and new sales, then inventory mismanagement is the primary cause.… READ MORE

Losing Money By Not Using These 8 Inventory Management Techniques?

Read “Warning: You’re Losing Money By Not Using These 8 Inventory Management Techniques!” by Cassandra Campbell to learn more!  

I used to dread the word “inventory”. As a part-time cashier in high school, the word inventory only meant one thing: lots and lots of counting. It’s common for businesses to reconcile their inventory at the end of the year by counting up all their physical product and making sure it matches what’s on the books. For big companies like the one I used to work for, this requires all hands on deck!
silent killer of cash flow

These days, I understand just how important solid inventory management is. Inventory is a placeholder for money.… READ MORE

Analyzing inventory to maximize profitability

Every company strives to improve profitability. Countless hours are spent in meetings devising ways to lower operating costs while increasing sales and gross margins.

Analyzing inventory

Unfortunately, management in many companies assumes that:

  • All material currently in stock is necessary to properly serve customers.
  • Costs can best be reduced by lowering wages, reducing benefits, and squeezing any possible amount from the operations budget.
  • Salespeople should focus on increasing sales dollars and gross margin profit dollars. Buyers should order whatever salespeople request to help them achieve these goals.
  • New warehouse technology is an expense that cannot be easily afforded.
  • In the quest to maximize return on investment many organizations fail to scrutinize their investment in inventory.… READ MORE

    Are Inventory Levels the Thermometer for Managing Your Company?


    Inventory Levels

    As a Phd in inventory optimization, I’ve started my supply chain career in adjusting inventory parameters with surgical precision. I was, and I still am passionate about applying statistics and advanced analytics to the supply chain domain. I’m still training supply chain experts on how to do this. I’m still involved in research where we redefine the boundaries of what science can do for you. Though I still believe that science can help, my biggest mistake was the assumption that it would be enough to change the game.

    With a master mathematics, 5 years of experience in IT and an ongoing MBA, I arrived in the supply chain domain 13 years ago.… READ MORE

    Effective Inventory Management: 5 Best Practices

    One of the biggest challenges many wholesale companies face as they grow is figuring out how to manage inventory as their needs change and their product portfolio grows. Fortunately, there are some proven best practices that will help to cure some of those inventory headaches.

    5 best practices

    One of the biggest challenges to effective inventory management has to do with the nature of the inventory management function as part of the overall business. Manufacturing, procurement and sales activities directly impact inventory, and yet these departments may not all be actively involved in inventory management decisions.

    Inventory is also affected by forces outside the company – the larger economic environment, changing seasons and trends, and resulting shifts in demand.… READ MORE

    Managing Inventory Turns: More money for what you need!

    Managing Your Inventory: The less money you have tied up in inventory in order to fill your distribution channels, the more money you will have to do all the other things a company needs done. Here’s how you can manage your inventory to your best advantage. 

    Inventory Turns cartoon

    With any distribution business, the less money you have tied up in inventory in order to fill your distribution channels, the more money you will have to do all the other things a company needs done — marketing, advertising, research and development, acquisitions, expansions, and so on. You need to turn your inventories as often as possible during the year in order to free up that working capital to do other things.… READ MORE

    The 5 silent killers of cash flow

    In an economy where the stakes are increasingly high and cash progressively scarce, business owners must pro-actively manage the balance sheet and income statement or risk falling victim to the five silent killers of cash flow.

    Did you know that a majority of businesses that file bankruptcy reported a net profit, yet had negative cash flow? Often the warning signs that a company is in trouble go unnoticed until it is too late. A business can improve their liquidity and create long-term viability by looking closely at the following potential trouble spots.

    silent killers of cash flow

    The 5 silent killers of cash flow

    Inventory Management. Driven by revenue growth, business owners can easily lose sight of the gradual increases made in their inventory levels.… READ MORE

    12 Most Costly Profit Killers in Your Small Business

    Running a business is no easy task. It takes time, money and good decision making. This article from Donna Marie Thompson on highlights obstacles you want to try and avoid in running your small business. Enjoy!


    If your business strategy focuses solely on growing your business by expanding top-line revenues, take a closer look at your profit margins to ensure that your fair share of profits are actually reaching the bottom line. In many cases, you’re so busy selling, delivering, and putting out fires, your costs can silently creep out of control, with damaging effects on your business profits.

    Here are 12 costly profit killers that can drain your profits faster than you ever thought possible.… READ MORE


    This article from Wasp Barcode Technologies highlights three major topics:  optimization, predicting growth, and preparation as keys to proper inventory management. As the title suggests, managing your inventory efficiently and effectively will help “drive” your economic growth. Enjoy the article.


    Preview the article:

    “Poor inventory management is one of the primary reasons small businesses fail. According to the State of Small Business Report, 46% of SMB’s with 11-500 employees don’t currently track inventory or use a manual inventory process such as tracking in Excel. This may be hard to believe, but ensuring inventory levels are accurate and adjusted based on demand is a crucial process in running an effective business.READ MORE

    Ten Ways to Reduce Inventory, While Maintaining or Improving Service

    by Chuck LaMacchia, The Progress Group, LLC

    Inventory is a significant and visible asset in most companies – often the largest. Executives and shareholders have focused on inventory levels for years, but it has frequently been reduced arbitrarily, without a full understanding of supply chain implications. This paper discusses approaches to sustainable, and appropriate, inventory reduction.

    Pareto your inventory

    Ten Ways to Reduce Inventory, While Maintaining or Improving Service

    “Our competitor turns its inventory six times per year, but we’re only at four. We should be able to turn our inventory six times as well!” says the boss. “And get it done quickly!” From that, the inventory reduction crusade is set into motion.… READ MORE

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