Arnon Dror – Improve Your Business’s Cashflow with 3 Popular Inventory Management Techniques


Arnon Dror is a prominent financial executive with years of valuable experience in the world of international finance. This MBA graduate has the distinction of being the Vice President of a number of companies. Xerox, Creo Inc., Scitex, Kodak, Creo Americas and Presstek are names of some of these organizations. The people managing these establishments credit him for converting their concerns into profit-earning entities. They even say he has an impressive track record in the area of corporate turnaround strategies. Many of them also acknowledge this knowledge and expertise in many diverse areas. These include internal control, cash flow management, ERP integration, business negotiations, international taxation, and corporate mergers.

Arnon Dror – 3 key inventory management techniques entrepreneurs should be aware of

This financial executive says effective inventory management is always a contentious issue for many entrepreneurs. These businessmen need to keep adequate quantities in their warehouse at all times. Only then can they cater to the demands of their customers in the marketplace. Taking this step helps to boost their sales revenues.

On the other hand, overstocking has an adverse effect on their commercial operations. It can increase their operating costs to unacceptable levels. It leads to a significant decline in their bottom-line profits and creates immense pressure on their cash flow. This is obviously the last thing they want. This professional suggests these entrepreneurs should consider adopting the following 3 important techniques:

  1. First-in First Out (FIFO)

Implementing this technique is the necessity for all entrepreneurs regardless of whether deal perishable commodities. Under this procedure, the proprietors should sell off products which they acquire at an earlier date. Only then should they consider disposing of their latest items. Adopting this step helps them to minimize the risk of dealing with dead stock. At the same time, it also reduces the chances of spoilage. This is face which they can’t afford to overlook at any costs.

  1. Conducting an ABC analysis

Entrepreneurs are aware that not all products in their inventory are the same. There are some items which require more of their attention than the rest. However, these goods generally have low demand in the market. This makes them harder for these businessmen to sell to their clients. Carrying out an extensive ABC analysis helps the proprietors to identify such commodities. They can then take the necessary steps to phase them out of their warehouse slowly. Taking this step helps them to reduce their operating costs significantly.

  1. Carrying out regular audits

Businessmen can need to carry out periodic stock audits within their premises. This task is necessary for one important reason. The exact quantities and description of the products in their warehouse should tally with stock records. If this is not the case, then they need to identify the causes for the discrepancy. It can result from unavoidable wastage or spoilage. Only in the worst-case scenario can these owners suspect pilferage or fraud.

Arnon Dror clarifies that proper inventory management is a necessity for entrepreneurs rather than a luxury. It can improve their organization’s cash flow position beyond their expectations. Implementing the above 3 important techniques can help them achieve their objective. This is what they want at the end of the day.

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