Key points for effective product management

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In order to maximize your company's profits, you need to manage your inventory properly. To effectively manage your inventory, try to keep the following points in mind.
Maintaining proper inventory

An important point in product management is maintaining "optimal inventory." Optimal inventory is the minimum amount of inventory that can be maintained without running out of stock. Optimal inventory is calculated by "safety stock + cycle stock." "Safety stock" is the amount prepared to viber database prevent stockouts, and cycle stock is half the amount of inventory consumed between the time an order is placed and the time of the next order. Profits depend on whether or not you can set the safety stock and cycle stock appropriately and maintain the appropriate inventory. To maintain optimal inventory, it is important to analyze demand and surplus/shortage from past data. If you can shorten the manufacturing lead time through effective product management, you can reduce the cycle stock, which will reduce the optimal inventory and make it easier to reduce the risk of excess inventory.

Sharing product information within the company
Product management involves a wide range of tasks from manufacturing to sales, so it generally involves multiple departments. Therefore, if product information cannot be shared between departments, optimization cannot be expected. If product inventory information is not shared, there is a high possibility that inventory operations will be affected. It is necessary to create a system that allows multiple departments to check product information and update the information as appropriate.
Utilizing product information management systems