One of the biggest drains on a company’s financial well being is the high cost of carrying stocks .
In these competitive times it is staggering that so many companies be they large or small fail to keep a control of their inventories.
Whilst management consistently push for increased sales performance, the question of housekeeping is often put on the back burner or it would appear totally neglected.
There are various costs attached to carrying stock and as such it is an area of the company’s exposure which needs constant monitoring to ensure the acceptable rate of stock turn is being achieved and that stock losses are kept to a minimum.
The same level of focus should also be applied to debtors to ensure the effective management of cash flow.
Now might be considered as timely to conduct a pre-emptive review of your operating systems for stocks and debtors rather than wait for the post mortem results.
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