Inventory is a significant and visible asset in most companies. It is also a source of cash outlay that can inhibit the growth of a company if not managed properly
Asset Management and Inventory Control
Tying money up in inventory can have a severely negative impact on the cash-flow of a company. Inventory often grows faster in proportion to an increase in sales. It does not have to be this way. Effectively managing your inventory not only requires prioritizing the most expensive items, but also managing the less expensive items.