Recalling Inventory Management Challenges

I worked for Systems Group in Fresno California in the early 1990’s I spent a lot of time prospecting with wholesale distribution companies. My company was selling computer accounting software for inventory management.

Distributors did not buy accounting systems every year; they only re-considered such software every five years.

When selling a complex technology deal, there are several sales approaches; you can find a customer who is ready to buy now. Or, uncover a customer’s underlying problems and make the case for buying to solve their latent problem.

The time it takes to demonstrate your sales case will vary from three months to two years. Making a major change to the accounting infrastructure is difficult to achieve, when a customer is comfortable with the status quo.

I always explained that inventory management involved the process of reducing the amount of inventory sitting on shelves. That inventory represents dead dollars sitting still not turning over.

Inventory management reduces inventory costs but maintains or improves customer fulfillment levels. Successful inventory management requires a strict adherence to good inventory management processes.

Better ROI and higher profit margins are the benefits of inventory management. Management often accepts the idea of inventory management and accepts the need to change. However, inventory management required a cultural change on the part of employees and staff, and management was reluctant to commit to a technique that would require large-scale change.