How to effectively prevent inventory spoilage or wastage.

[Mikes smithen]

It is absolutely a bad experience when a particular business organization faces inventory spoilage or wastage which could occur as a result of buying fake and inferior goods or possibly buying goods that are too close to its expiring date. This can also result when inventories are not packaged or stored in the right manner possibly due to some factors like poor packaging facility and lack of electricity. In order to make sure that your business inventories does not spoil or get wasted you must make sure that raw materials used for manufacturing them are made of high quality and of course customers and client would want to patronize and buy such inventories.

While buying your business inventories you must make sure that they are not too close to the expiry dates, according to experience it should be 5 to 6 years close to its expiry date.

 

[Leah Kelvin]

Cost reduction and maintenance of net income necessitate prevention of inventory spoilage. To avoid this, the company should practice first in first out (FIFO) method, keep a watchful eye over stock levels, maximize storage conditions, rotate stocks, adopt JIT inventory control system and establish strong supplier relations. They prevent spoilage and wastefulness by ensuring that products are used or sold at the right time to give maximum efficacy yet with minimal financial loss. The regular monitoring; proper storage; and proactive management are the key steps to effective inventory control for cost optimization.