Acctivate Blog Post Featuring Mario Nowogrodzki
On a scale from 1 to 10 the importance of inventory management for wholesale distribution and manufacturing companies should be viewed as a 10 being that it is considered the heart of a business’ operations alongside supply chain management. The absence of strong inventory management strategies, practices and disciplines compromises customer satisfaction and results in financial losses.
QuickBooks expert and consultant Mario Nowogrodzki of Mendelson Consulting truly understands the importance of inventory management. One of his company’s primary areas of expertise lies within supply chain, inventory and warehouse management. Using this expertise and their proven growth strategies, Mario and his company help solve the inventory and business management challenges small and mid-sized companies face.
We recently caught up with Mario, and got his take on why inventory management can be critical for business success.
If a business is not efficiently managing inventory, what risks are they facing?
Mario: Having too much inventory on-hand results in added costs of carrying excess inventory. On the opposite end of the inventory management spectrum, carrying obsolete inventory results in inventory losses or write-downs. Additionally, having enough inventory or having the wrong inventory on-hand causes missed sales opportunities.
What are the signs of poor inventory management within a company?
Mario: A company is in trouble when they have aging or obsolete inventory; inventory sitting in the warehouse not reflected in inventory records; and missing inventory items due to theft, misallocation, or incorrect records. Also, when reviewing the company’s Balance Sheets seeing inordinately high or low inventory asset values is a red flag; as is inordinately high or low Cost of Goods Sold on Profit & Loss statements.
What steps can a business take to better manage their inventory?
Mario: The first step is the willingness to have accurate numbers for better business management and financial decisions. From that, the natural tendency is to implement the right inventory and order management system and maximize the software features.
What are the key components of an effective inventory management solution?
Mario: The right inventory management solution provides inventory location tracking, mobile barcoding, serial number / lot number tracking, reorder points (minimums/maximums), matrix inventory, multiple units of measure and webstore integration.
With the right processes, procedures and systems in place for inventory management, what can a business look forward to?
Mario: Peace of mind knowing that inventory levels are what they are supposed to be, without worrying about carrying too much or too little inventory, and knowing that the inventory that is supposed to be there is actually there. Best of all, the business’ bottom line will improve by eliminating financial wastefulness of poor inventory management and maximizing financial efficiencies of good inventory management.