ORLANDO, Fla. – There’s a trick to successfully managing inventory, according to Patrick Kennedy, a consultant for Spader Business Management. That trick is finding the right balance between the art and the science of inventory management.
“Our experience tells us that inventory management is a complicated mix of art and science,” Kennedy explained during a seminar at the Marine Dealer Conference & Expo in Orlando yesterday. “But while considering the math variables alone can make it seem impossible, not to mention the seemingly Zen-like thinking of the best inventory managers, it can be mastered.”
Kennedy covered the basics of measuring inventory with an emphasis on calculating turns and acceptable margins. Then he walked attendees through the art of inventory control, focusing on a series of key points that will help attendees master the overall system.
“Quality inventory management is a combination of rational and non-rational factors,” Kennedy summarized. “Dealers that can learn the math and forecasting of the ‘science’ of inventory as well as create the discipline to develop the high-touch, very human-opinion-based ‘art’ will succeed far better than those who focus on one or the other.”