Best Stock Policies

The best systems of inventory management all contain a particular series of criteria that make them both efficient and worthwhile. When one considers that improvement of your inventory management system by as much as 15% can affect your profit margin by over 30% minimum, an intelligent structure and “practice” of sound policies should be the least that you do.

The criteria are as follows:

Systematic Inventory Updates
Operation of proper perpetual inventory system should be used so that it is possible to determine at any time the amount and value of each kind of materials in stock. It also enables the comparison of book inventory with the result of physical counting.

Control of Stock Areas and and Sales of Product
The proper operation of a system of stores control and issue is introduced so that there will be delivery of materials upon requisitions to departments in the right amount at the time they are needed.

Checks and Balances
The operation of internal check should be introduced to ensure that transactions involving materials and equipment are checked by reliable and independent officials.

Establishment of Controlling Accounts and Subsidiary Records
Controlling accounts and subsidiary records reveal  summary of detailed materials costs at each stage of materials receipt and consumption from the storeroom to finished goods.

Regular Reports
Regular reports and information should be provided for the management in connection with the purchase of materials, issues from stock, inventory balances, obsolete stock, goods returned to vendors, and spoiled of defective units.

Standards or Level to be Fixed
A minimum quantity of each item of materials, below which point the inventory is not allowed to drop, and a maximum quantity, above which stock is not carried should be fixed. In the same manner ordering level and economic order quantity may be determined.

If you are planning to consider a modern and feature-rich software application to manage your stock, please review the above sections and devise what you need, then visit www. or email to get help with taking your first cohesive steps toward increasing your business success.

Clever Quotes from Smart CEOs

“The way I think about culture is that modern humans have radically changed the way that they work and the way that they live. Companies need to change the way they manage and lead to match the way that modern humans actually work and live. We’re trying to re-craft culture in a way that really matches that. I think that 99% of companies are kind of stuck in the ‘90s when it comes to their culture.”Brian Halligan, HubSpot CEO

“It takes humility to realize that we don’t know everything, not to rest on our laurels, and to know that we must keep learning and observing. If we don’t, we can be sure some startup will be there to take our place.”Cher Wang, HTC CEO

“The thing that I learned early on is you really need to set goals in your life, both short-term and long-term, just like you do in business. Having that long-term goal will enable you to have a plan on how to achieve it. We apply these skills in business, yet when it comes to ourselves, we rarely apply them.”Denise Morrison, Campbell Soup Co. CEO

“Experience has taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third, is that sometimes your best investments are the ones you don’t make.”Donald Trump, The Trump Organization CEO

“Don’t worry about failure; you only have to be right once.”Drew Houston, Dropbox Co-founder & CEO

“In this ever-changing society, the most powerful and enduring brands are built from the heart. They are real and sustainable. Their foundations are stronger because they are built with the strength of the human spirit, not an ad campaign. The companies that are lasting are those that are authentic.”Howard Schultz, Starbucks CEO

“The distance between number one and number two is always a constant. If you want to improve the organization, you have to improve yourself and the organization gets pulled up with you. That is a big lesson. I cannot just expect the organization to improve if I don’t improve myself and lift the organization, because that distance is a constant.”Indra Nooyi, Chairperson and CEO, PepsiCo

“I try not to make any decisions that I’m not excited about.”Jake Nickell, Threadless CEO

“There’s an entrepreneur right now, scared to death, making excuses, saying, ‘It’s not the right time just yet.’ There’s no such thing as a good time. I started an apparel-manufacturing business in the tech-boom years. I mean, come on. Get out of your garage and go take a chance and start you business.”Kevin Plank, Under Armour CEO

“Lots of companies don’t succeed over time. What do they fundamentally do wrong? They usually miss the future.”Larry Page, Google Inc. CEO

“You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future. You have to trust in something—your gut, destiny, life, karma, whatever. This approach has never let me down, and it has made all the difference in my life.”Steve Jobs, Apple CEO

Parade Your Product

simms_showoffproductDemonstrate your product/service’s value
When it comes to convincing a reluctant customer to make a purchase, flowery, glowing praise for your product or service is only going to get you so far. To really get the customer on your side, show your customer how the thing you’re selling will make their life better. Whether it will save them money and time, give them peace of mind, or simply make them feel good, make sure your customer understands exactly how the item you’re selling benefits him in real, practical terms.

This is a common sales tactic. For instance, car dealers let customers go on test drives and guitar salesmen let customers play on their instruments – even department stores let customers try clothes on before they buy them. If the thing you’re selling is intangible or something you can’t let customers touch before buying, think of another way to show customers its value. For instance, if you’re selling solar panels, you might help customers estimate the savings they’ll have on their electricity bill.

An old saying goes, “Sell the benefit, not the product.” Focus on what your product or service allows your customer to do, rather than on the product itself.

Print Ads Make a Difference

Many companies need, from time to time, to re-enforce their brand and their products in the marketplace. Rewrite your existing print ads with direct-marketing techniques that get results. Take a look at all of your advertising as if you were a customer. Is it compelling? Does it persuade the customer to do business with your company? Use some of these direct-marketing techniques to improve response:

Create a powerful headline. The headline is the most important part of your ad. Its what stops the readers and gets them to read the rest of your ad or not. It doesn’t have to be funny, cute or clever. It does have to compel readers to read the ad and take action.

Write your ad copy to sell. Use your ad to tell readers how doing business with you will benefit them. Most companies talk about themselves more than they talk to their audience. People want to know whats in it for me. Make sure you tell them. Include testimonials to boost credibility.

Include a call to action. Tell them exactly what you want them to do: call today; visit our showroom; call for more information; order now. People need to be nudged in the right direction. The right call to action can dramatically improve the results of an ad.

Include a good offer. Give readers a reason to act now. Offer a percentage off, limited-time sale, free gift or valuable information. Be sure the offer has an expiration date so the reader doesn’t procrastinate. Effective ads give people a reason to act now.

Forklift History…

simms_1stForkliftOne of the first platform trucks ever used was produced in 1915, and featured power for both horizontal and vertical movements. A predecessor made by the same company the year before required the lifting of the platform by cranking away on a huge handle that turned a geared wheel only one foot in diameter — making lifts of 500 pounds almost impossible unless you were a blacksmith or a weightlifter.

What a difference a year can make!