The impact of inventory on organizational performance

Inventory management is the process of efficiently overseeing the steady flow of components into and out of an existing inventory and to monitor how companies track and control the quantities of finished products for sale. Inventory management practices are often considered to be the major asset because it helps business to be more profitable by lowering their cost of goods sold and/or by increasing sales. The opportunities available by improving a company's inventory management can significantly improve bottom line business performance. Inventories frequently account for more than 30% of the firm's invested capital. The main purpose of this article is to analyze in detail how the inventory techniques used in inventory management will help the organization in achieving their goals and objectives. We have taken Axiom Telecom LLC as our case study. The study was carried out to examine the nature of relationship between inventory management and organizational effectiveness and to determine the effect of inventory management on organizational productivity. This study has helped in identifying the consistent need of implementing the inventory techniques and also maintaining the practice in a systemized manner. Rather than being a market leader it is very important for a company to perceive how the fundamentals are laid down in the organization, the strategies and developing the culture which can drive those strategies.