How Asset Tracking Reduces Theft, Loss, & Cash Flow Issues
Many asset tracking systems touch on the fact that efficient and effective management has a far reach which has a very positive impact on organizations. A proper inventory software system, such as assetGEEK, can help prevent cash flow problems by identifying which items need the most attention, and see an item’s monetary impact on the business so you can keep a higher volume of the stock which influences your cash flow.
Cash flow can easily be affected by fraud in inventory being reported either purposefully or inadvertently by employees. Requiring a count of inventory on a daily basis can help track what inventory is available compared to what was sold. If items are missing from the inventory which are not accounted for, there are a few reasons this would occur. Human error can account for the loss of most inventory items due to inaccurate counts of stock. It is important to verify what is listed in the inventory system against what is actually in stock by someone, perhaps in auditing, before pursuing missing equipment. The best way to prevent any form of fraud is to have accurate asset tracking and regular physical counts of all items.
Waste of products which have a limited shelf life is also important to avoid. Accurate inventory counts are required when ordering such items. Wasted products are wasted money, and too much waste can lead to a huge dip in cash flow. The basic business principal of supply and demand working alongside an inventory system can help eliminate a lot of this issue.
Cash flow is affected by a number of different issues which can all basically be eliminated by following basic inventory steps in order to assure your company has the right stock of items required to provide goods, you don’t have an overabundance of certain items, and by counting the inventory regularly to avoid loss or theft.