How can Inventory control save money? Here is a simple easy to follow example:
Dr. Needitnow only uses yellow flexiplops. The staff knows he uses them all the time but don’t really know how many. But they don’t dare run out so they order a lot. In fact the office has 200 yellow flexiplops on hand. They retail for $15.00 each so the value of the flexiplop inventory is $3,000.
After a few months of using a Smart Inventory Management system (like Cubex) the software shows them that Dr. Needitnow actually uses ten yellow flexiplops per week. They can order a box of ten each week; keep ten more on hand and never run out. So they adjust the inventory, return a bunch of unopened flexiplops (before the expiration date) and now keep an average of fifteen on hand. The value of fifteen yellow flexiplops is $225. That means that $2,775 is not tied up in inventory but can be added to the bottom line.