Now, more than ever, your company is counting on you to keep a close eye on the flock — your inventory.In order to do that, you need to take an even tighter grip on inventory functions by imposing even stronger control of the operation.

At the same time, it’s critical to scrutinize expenses more carefully than ever before. That’ll help maintain or even improve your cash flow.

Four key action steps you can focus on:

1. Old inventory costs you money, each day it sits on your shelves — so get rid of it. Set deadlines and sell old stock, at a discount if you must. Check with other departments at your company for suggestions or ideas.

2. Broaden your contacts and relationships with suppliers. Keep the door open all of the time with your suppliers. When you need a favor or a break (or they need one in return), it’ll be a lot easier to get their attention.

3. Discounts. Look for them. Ask for them. Barter for them.

4. Pay creditors just in time — and not a moment sooner. This might even be reason enough to set up electronic funds transfer, if you haven’t done so already. The longer you hang on to your company’s money, the more your company makes on it.

Finally, don’t be afraid to go against the grain when shopping. That means that the best price isn’t always the best deal.

Make sure you know first exactly what it is you’re looking for, then begin comparing prices. A low price that saves you a couple of bucks now but costs you more in the long run isn’t a very good deal.

And if you’re not doing it already, take a hard look at inventory levels. Do you really need to have 100 widgets on the shelf? Or can you get away with 30? How many are gathering dust?

Can you increase the shipment frequency, or even piggyback it with other inventory shipments?

Tags: creditors, customers, discounts, inventory, suppliers