Are you struggling to keep track of your inventory? Do you find yourself constantly running out of stock or having excess inventory that's taking up valuable space? If so, then it's time to start using the "On Order" method in your inventory management strategy. Here's everything you need to know about On Order.
"On Order" refers to inventory that has been ordered but has not yet been received. This method is used to track items that are in the process of being restocked, so you can avoid stockouts and overstocking. By keeping an eye on your On Order items, you can better plan for future purchasing and avoid any delays in your supply chain.
Each time an item is ordered, it is added to the On Order list with the expected delivery date. Once the item has been received, it is then moved to the main inventory list. By keeping track of On Order items, you can plan for future restocking needs and avoid running out of stock or overstocking.
Effective inventory management involves keeping track of all aspects of your supply chain, including purchasing and logistics. By tracking your On Order items, you can better plan for future restocking needs and avoid any delays in your supply chain. You can also reduce the amount of excess inventory you have on hand, which saves money on storage costs.
To use the On Order method effectively, you need to have a robust inventory management system in place. This system should include real-time tracking of inventory levels, automatic reordering based on pre-set thresholds, and a clear understanding of lead times for each item. By incorporating On Order into your overall strategy, you can ensure that your inventory levels are always optimized for demand.
The benefits of using On Order in your inventory management strategy include:
While On Order can be an effective inventory management strategy, there are a few potential downsides to keep in mind. These include:
Overall, the benefits of using On Order outweigh the potential downsides, and it's a valuable tool for any business looking to improve their inventory management strategy.
