• Reduces costs by helping management hold inventories to a minimum
  • Helps the purchasing department receive greater discounts and the lowest prices
  • Develops a minimum of items to be carried in stock at any given time
  • Establishes a base for sales forecasts by using accurate inventory figures



  • Reduces purchasing costs by developing an unlimited source of suppliers
  • Reduces costs by revealing items that are obsolete or deteriorated

Materials Purchasing & Inventory Control

  • Prevents errors in pricing by maintaining an accurate cost and price

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  • Prevents ordering above the maximum, thus reducing investment in inventory

Many businesses invest thousands of dollars in inventory yet make no attempt to monitor purchasing procedures or account for any part of the inventory value.  It is not uncommon to discover that the value of the inventory is greater than or out of ratio with working capital, and even though the relationship between current sales to inventory may be satisfactory, poor purchasing procedures and excessive inventory have resulted in heavy, unexpected and untimely losses.

​When management pays no heed to the necessity for control of inventory, it will always find itself in a position where cash is tight.  To ensure that cash is not tied up in excess inventory caused in part by ineffective purchasing, implementation of the Materials Purchasing & Inventory Control program:

  • Increases profit by maintaining current saleable items
  • Establishes a sales analysis by the month and year for sales reference

Business Performance Optimized