www.outdoorpowerequipment.com OUTDOOR POWER EQUIPMENT FEBRUARY 2017 15
Inventory does not equal sales
The more equipment, parts and other miscellaneous items that
you purchase does not help your bottom line unless they move
out of the backroom. Make sure that you are selective in what
you are putting into the store. The problem of excess inventory
can spiral out of control very quickly.
The race between the tortoise and the hare is a great
reminder to us that being fast and speedy does not
always ensure victory. Inventory management
experience comes over time, and with the history
of the past, we can somewhat predict the future.
Sometimes in this business, nature intervenes
and messes up the model a bit, but you need
to take time to make good decisions on how
to control inventory. Let me just say it one
more time: A great inventory management
program that you use (and make sure you
use it to 100 percent of its capability) can
make you double-check your instincts
when it comes to ordering. You can
save lots of dollars invested in stagnant
inventory (especially in the parts
department) when your opportunity
to get parts is one to two days if rushed.
The manufacturer then becomes the one
that holds your parts until you really
need them instead of having them sit
on your shelves for years. I love the
following words from Confucius: "It
does not matter how slowly you go,
as long as you do not stop." Never
give up on trying to improve your
inventory management. Your business
will thank you in the end.
Jeff Sheets is the founder
and owner of OPE Consulting
Services. Whether a business is
thriving or struggling to survive,
Sheets' rich experience in both the
corporate and not-for-profit sectors
allows him to partner with business
owners to customize unique strategies for their needs. For
the past 11 years, he has worked extensively with hundreds
of outdoor power equipment dealers to create best practices
in business structure, personnel management and financial
profitability. For more information, he may be contacted
at opeconsultingservices@gmail.com or (816) 260-5430.
You can also follow him on Twitter @opeconsult, connect
with him on LinkedIn, and visit his website at
www.opeconsultingservices.com.
OPE
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