Inventory Management

If you can see it, you can fix it. But sometimes it is so subtle that you do not realize it. We aim to help manufacturing companies to avoid getting into this situation and help check the signs & symptoms early on to Plug the Leaks in business.

Why Find & Plug Leakages in Business?

Robust & Multifold Growth cannot be possible without plugging the leaks in your business. Your business may grow and flourish, but your profits may not be according to your expectations. You may be operating at lower margins. That’s precisely why you should be extremely vigilantabout all areas of your business and plug the leaks as early as possible. Let us now look at some common examples of leakages in business

Examples of Leakage in Business

1. Revenue Leakages

Cash flow is the lifeline of any business. So, one of the most significant leakages that you should look for is revenue leaks. Revenue Leaks can occur, if  A credit control policy is not well defined  Payment terms are flexible or not clear  Invoices are not sent timely  Incorrect value of invoices  Data entry errors  Paying penalties for late payments to vendors If your receivables are delayed your company will possibly face a cash crunch and it will affect the operations & profitability of the company.

2. Inventory Management

Have you ever faced situations of stock-outs? OR Do you see a lot of inventory lying idle in your shop floor or warehouse? In either of the situations, you will incur costs that are likely to impact your working capital and ultimately affect your profitability. You must improve your inventory planningpractices to get over this situation.

3. Process Challenges

Do you have standard operating procedures? Do you have clearly defined procedures to perform tasks and well-defined roles & responsibilities? If not, your company will not be able to ensure consistent quality work and hence will struggle to improve efficiency & productivity for the growth of the business.

4. Lack of Single Source of Information

Do you have a single source of accurate information in your organization? Does everyone have complete visibility of their processes? When employees and management do not have complete visibility of the business, they cannot make timely & informed decisions, which may result in confusion, delays, and possibly financial losses as well.