The Importance of a Records Inventory

by Hall Harris
Establishing the right inventory amounts saves time.

Establishing the right inventory amounts saves time.

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A detailed listing of a company’s volume, complexity and scope is known as a records inventory, a major management tool utilized by companies and business owners to ensure efficient operation. The records inventory includes details of the recorded information: dates prepared, people and offices maintaining the records and medium used to record the data. A records inventory aids in administrative functions, such as planning, staying within budget and identifying a company’s information holdings.

Customer Service

An updated records inventory ensures speed and accuracy when dealing with and responding to clients. For example, when clients call in or inquire on inventory-related issues, company representatives can quickly find and issue answers. Knowing which records are available and where to find them helps customer service reps handle inquiries promptly and fill orders efficiently, which gives clients a better impression of the organization. If customers face delays and have to wait for products, services or answers, it portrays the company as incompetent and may lead customers to find alternative companies or cancel orders.

Expense Control

Companies with up-to-date records inventory can better control their expenses. For example, a company can buy from specific manufacturers and suppliers at quality discounts based on the suppliers that offer the best deals on specific products. To attract and maintain regular clients, manufacturers and suppliers offer attractive discounts for companies that buy their products in bulk. Updated records also help indicate goods that need restocking and ensure the company avoids overbuying.

Saves Time

An accurate records inventory saves the inventory department staff members time. The employees are, therefore, able to have more time to focus on other activities that enhance their company’s overall performance. For example, the workers can direct their time to innovate better ways to organize the inventory. Indexing and retrieval systems are some specific areas they can look into. In addition, the staff can also enlighten other workers in the company on how to access stock information quickly when they need to. Inventory workers can also get the opportunity to explore other skills, such as data analysis, market research and marketing based on predictions from prior records.

Identifying Issues Promptly

An accurate records inventory enables a company to identify problems affecting its performance, such as product loss through damages, theft or unknown causes. Keeping an eye on the inventory records helps a company save money by spotting issues as soon as they appear rather than at the end of the year during annual stocktaking. Whether they are mistakes by the salespeople or procedures skipped in the warehouse or the field, an accurate records inventory helps identify these problems by using checks and balances to reconcile sales.

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