Cash Flow Strategies — inventory

Inventory Management Tips to Improve Cash Flow

business cash flow strategies inventory

Inventory Management Tips to Improve Cash Flow

Inefficient inventory purchasing and stocking can drain your cash flow. Make sure you are following these steps to ensure you aren’t needlessly locking up cash in your inventory. Get an inventory management system. There are several easy and inexpensive systems available. If you don’t know what inventory you have on hand, you have no way of knowing what to order and what is not selling. If you maintain “safety stock,” then analyze whether or not you use it, how often you use it, etc. You may be able to reduce the amount you keep in safety stock. Stop making or buying...

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