INVENTORY - Past, Present and Future

As a manufacturer and a retailer you need two systems of inventory control. The inventory control system must be accurate. It should take a minimum of your time to keep it current and accurate.

INVENTORY CONTROL - MANUFACTURER - Create a chart with columns for each of the headings listed below:

• Date
• Materials Purchased
• Number Purchased
• Cost Per Item
• Number Used
• Number Left
• Cost of Items on Hand.

This will give you a work sheet to monitor all the supplies you purchased and the cost of the supplies used in an item. For example, with the chart you will always know how many earring wires you bought, how much each wire costs and how much it costs to make a pair of earrings.

INVENTORY CONTROL - RETAILER - Create another chart with columns with these headings:

• Date
• Item Completed
• Cost Per Item
• Number Completed
• Number Sold
• Number On Shelves
• Number Stored
• Cost of Items on Hand.

This work sheet will show an inventory of the items you have completed and made for sale. This will help you to always know how many you have on hand for sale and with the cost per item, help you to determine the price you will charge.

Go to EIM's site to find new articles each month on Effective Inventory Management

Control your inventory. Know what is stored in all those closed boxes. Have a unit- control system by using a card on the outside of the box to record a running, perpetual count of what is stored, what is used and what needs to be purchased.

Your records of sales determines what items are profitable. Twenty percent of your inventory may produce eighty percent of your sales. The fastest-selling item may produce the highest percentage of sales, but not necessarily the highest percentage of profit. Constant analysis of your records determines what is selling the fastest and what is most profitable.

Since inventory is money, you don't want to overbuy unless it is the basic item that you use constantly. Buying a large quantity of yellow plastic butterflies because you got a good price can mean a loss of money to you. One, you spent money, two, you used three butterflies, the rest are in a box on the shelf for years, three, you are going to end up throwing them out. Buy wise and save money.

Look at past year sales and purchase by comparing what you will need, to what is in inventory. This helps you budget and save money. Some crafters might prefer software to help with inventory. Look at

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