Inventory Management Strategies for Growing Businesses
Business leader Salomon Juan Marcos Villarreal is the chief executive officer of Grupo Denim, one of North America’s largest denim apparel companies. In his leadership role with Grupo Denim, Salomon Juan Marcos Villarreal oversees operations such as manufacturing processes, financial planning, and inventory management.
When it comes to inventory management, growing businesses must pay careful attention in order to gain an accurate assessment of their finances. As the business grows, executives must make accurate forecasts of their inventory needs in the future. If inventory needs are projected to outpace physical space or supplier availability, business leaders must make the appropriate accommodations or risk wasting valuable capital.
In the same vein, metrics play a vital role in a company’s ability to assess its current and future inventory needs. Business owners can choose from many different inventory metrics, including days’ supply based on product and location. It is important to choose the right metric, however, as certain metrics can obscure imbalances in inventory supply and demand. Perhaps most importantly, business leaders must be prepared to act based on metrics; otherwise, they are nothing more than numbers.