Stock already paid for must move.
You will always have good and bad stock inside the same warehouses. In every industry that I have been, achieving a 100% stock balance, is not yet achievable, however, one must get quite creative to prevent, and get rid of, old and slow moving stock. There should also be a prevention methodology implemented, to prevent your slow moving stock from absorbing too much cash flow
More salable stock, More sales.
The biggest challenge with having enough salable stock will be determined by how fast your sales environment, and world economics keep on changing. Stock and Sales departments did not communicate much in previous years, but no company can grow like that today. Not all companies in the world have the skills available, where the people that procure the stock, and the people that manage that stock, were also on the sales side of the business. Buying stock is a lot easier than selling it and making good profit.
Untidy Warehouses = lots of missing stock.
Untidy warehouses are dangerous as it can reach a point where you can find less, and end up with too much in store. Warehouses are running on “controlled chaos” at the best of times, but there are certain spaces, inside and outside, that clearly show major potential for safety hazards now and in the future.
Stock is cash gathering dust.
It will never be only the landed cost value of stock that represents money. Think about the cost per square meter of floor space, about electricity, human resources, etc. Procurement can severely punish your cash flow by buying too much stock. And if bought at the wrong price, with heavy shipping costs, your cash flow hurts big time.
I started my career, working for two Government institutions (Armed forces and SARS). Following that, I got into work with a lot of stock, big and small. A great move by one of my employers, was to send me to a branch (Earth Moving), where I was responsible for specific outcomes, for me to progress in my career.
The most important one was to see if I could bring in extra business, ie if I could sell effectively.
After 2 years, I achieved and exceeded all targets set. The sales experience would serve me well, and does even now. I’ve had to not only control procurement, and all types of stock, but also sell a lot through the years. I even sold used cars.
Because I have been involved in so many different Departments, and industries, all my experience will be invaluable to any and all companies – advantage and growth potential.
The national sales manager at LG Electronics SA told me the following: “No University in the world could teach us what we have learned from these South Koreans. They are without a doubt, the hardest working nation in the world, in a country, that is geographically smaller than the Kruger Nation Park, with roughly 45 Million people.”
I really enjoy working together with other specialists – as a major team player, I love the synergy that comes from that!
For more information contact Paul at paul.oberholster2@gmail.com
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