Etini
Valued Contributor
One of the most important components for a business that buys and sells is the optimum management of inventory. Inventory management needs to be handled in a way that avoids overstocking or understocking. And one very vital input that would help an organisation manage it's inventory effectively is a clear understanding of the customer base available for the business. A sound of knowledge and estimate of the customer base of a business helps to achieve optimal inventory management in the following ways:
1) It helps a business to project the possible demands per time: A good understanding of the size of your customer base would allow the business to predict demand patterns per time. That ensures that customers don't run short of demanded products and the business is not tied down by dead stock.
2) A good knowledge of your customer base helps to improve cash flow: When you understand the size of your customer base, you wouldn't overstock and that would help you to have a better cash flow because excess supply that would have happened because of overstocking is eliminated.
3) A sound knowledge of the size of your customer base would make the business to eliminate understocking. That means that customers can always get their desired products when they want, thereby breeding trust amongst the customers towards the business.
1) It helps a business to project the possible demands per time: A good understanding of the size of your customer base would allow the business to predict demand patterns per time. That ensures that customers don't run short of demanded products and the business is not tied down by dead stock.
2) A good knowledge of your customer base helps to improve cash flow: When you understand the size of your customer base, you wouldn't overstock and that would help you to have a better cash flow because excess supply that would have happened because of overstocking is eliminated.
3) A sound knowledge of the size of your customer base would make the business to eliminate understocking. That means that customers can always get their desired products when they want, thereby breeding trust amongst the customers towards the business.