Do you know FSN to Manage Inventory??
Today we will be talking about inventory management and the very useful technique to manage the inventory and that is FSN analysis, what are the benefits of FSN Analysis and how to manage the inventory through FSN Analysis?
If I talk about the word inventory management, then it simple refers to storing, ordering and processing of inventory which is being used by the businesses or we can say it includes all the things related to the management of things related to the raw material, finished products or the products which are there in the warehouses.
Now there are so many techniques which a company uses to manage their inventory but if I talk about a specific one and that is FSN, which simply means;
F- Fast moving inventory items
S- Slow moving inventory items and,
N- Non moving inventory items.
Under this particular analysis or technique, the items are classified as per their consumption level and the quantity used. Fast moving items are those which are used and issues very frequently, slow moving inventory items are those which are issues and used for the specific period of time and the last category that is non moving inventory items are those which are not used and issued over a period of time.
If we talk about how it can be a useful then, then you can use this technique to know which all are the items which are being used and issues in the company and which all are the deadly stock. It also shows which all the inventory which is active in nature is. It also helps the manager to know which all are the items which he has to review on regular basis or need active attention. That is why, it also helps to manage the space where these inventories are kept very efficiently.
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