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Time Inventory Management and Cash Flow

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How does just in time inventory management system increase the cash flow?

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This solution discusses time inventory management and cash flow.

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In today's competitive global scenario, it calls for companies to focus on improving the bottom line, increasing profitability with each passing day and enable long-term competitive advantage. With shrinking margins and increasing competitiveness one needs to increase the revenue at a much faster pace that the costs. To survive, one needs the ability to compete with companies with lower cost structures. Inventory is a big asset on a company's balance sheet. It helps to determine the financial performance including Return on Assets (ROA) among others.
Hence, efficient stock control is key to cutting costs - you need the right stock on hand for the right jobs, at the right time, all the while keeping your inventory levels as low as possible to control cost. (entpms)
One of the methods of reducing inventory and inventory control is JIT. JIT system. `Just-in-time' is a ...

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