We monitor and report on inventory levels weekly for both finished goods and raw materials. We manage to minimum inventory levels, so that we can call for production before product is short. When minimum inventory levels are reached, new production is ordered.
Inventories are maintained two ways:
- Physical- used by Accounting
- Available- used by Operations
There are costs associated with keeping a large inventory such as holding costs, security costs, insurance costs, ect.. However there are also costs associated with not keeping a large enough inventory, including loss of sales, loss of customer loyalty, ect. At Backoffice Logistics we help to manage your inventory so that you always have an optimal level of inventory that keeps both sets of costs as low as possible while keeping your customer service and satisfaction high.