For small businesses just starting out, managing inventory can be quite a simple task initially. However, as your company grows, you will soon find managing stock increasingly complicated.
Below, we highlight some key signs that your business is in desperate need of inventory software. From running out of stock to over-ordering, the following signs should serve as warnings for any business aiming for success.
Too Little Stock
Sure, during the Christmas period it can be difficult to judge inventory needs and you may find yourself coming up short. However, if you find that your business is consistently running low on stock, this is a clear sign that your company would benefit from downloading inventory software.
The great thing about downloading inventory software is that it will give you a much clearer prediction of how many units of each product you may need according to demand. Inventory software will help you to easily track sales trends over the past few months, and this way you can identify popular, fast-moving products and order extra units where appropriate.
Too Much Stock
Over-ordering is a related risk that comes with manual inventory management. Conducting stock takes and understanding sales trends can become very difficult with manual inventory systems, especially as your company begins to grow.
If you are consistently finding that you have obsolete stock in your warehouse, this is another clear indication that you need to download inventory software. Failing to accurately predict sales trends is common in businesses relying on manual systems, and obsolete stock it entails usually means financial loss.
By downloading inventory software, you will be able to track sales trends and reconfigure stock as required. For example, inventory software may alert you to the fact that a whole range of products are slow-moving or not popular with customers at all. In so doing, you can hold back on ordering so many of those particular products and prevent huge amounts of resource and financial wastage.
Failing to Understand Stock Levels
If you have no idea how much stock your company holds, this is a very clear indication that you need to download inventory software. It may seem irrelevant when your business first starts out, but you will find that good inventory management is key to both the satisfaction of your customers and the overall success of your company.
If a customer were to order a certain product and you didn’t know how much of it you had in stock, you risk customer dissatisfaction if you aren’t able to provide what they want. The customer may cancel the order all together, ask for a refund or alternatively you may need to fork out for the extra costs of making a last-minute stock order and getting the item delivered to the customer as quickly as possible.
Counting your stock manually (or not at all), immediately puts you at risk of disappointing your customers. Inventory management software, however, is ideal for tracking your stock levels as it will provide accurate information on everything from stock levels and locations to types of inventory.