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Inventory management, if done properly, can bring down costs and increase the revenue of a firm.
How much one should invest in inventory management?
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From invoices to purchase orders, there is lot of paperwork and documentation involved in inventory management.
Several software programs are available in market, which help in inventory management.
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It is advisable to employ specialized staff for inventory management.
The inventory management process begins as soon as one has started production and ordered raw materials, semi-finished products or any other thing from a supplier.
Inventory management helps a firm to decide in advance where these supplies should be stored.
If a firm is getting supplies of small-sized goods, it may not be much of a problem to store them, but in the case of large goods, one has to be careful so that the warehousing space is optimally utilized.
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