Better Merchandising Decisions with Better Inventory Management

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Inventory management is vital for many businesses; it can make or break your bottom line. So why are 43% of small businesses still using manual methods or worse not tracking inventory at all? Without an effective inventory management system in place, you risk your business being more susceptible to many problems such as inventory stockouts due to poor forecasting, obsolete inventory due to not analysing your data correctly, and this risk is increased if you’re running an eCommerce store.

If you are not managing your inventory stock effectively without data and analytic capabilities, then you are also losing out on significant insights to make smart merchandising decisions. It’s time to look at a sound inventory management system to take better control of your inventory — take a look at the following four benefits a better inventory management system can do for you.

Find out what customers want and when they want it

New inventory management tools can help find out who is researching, buying and talking about your products by applying analytics to sales and interactions data. Insights from this data can be used to match customers and items better by using analytics to get the best picture of when and to who a product appeals — informing smart merchandising decisions.

Identify trends

Trying to summarise and use shopping data to build unique customer profiles has always been a challenge. Especially when shopping baskets and purchases change over time, between locations and from season to season. However, with better inventory management there are new ways to handle big data comprising of transactions and other variables, that put beneficial insights into action – creating smarter merchandising decisions for managers and owners that go far beyond intuition. In addition to this, better inventory management can take this a notch further by spotting connections between products and product categories to uncover better insights for every SKU.

Better forecasting

No longer do you need to just look at sales volume data. You need to consider other metrics that signal good inventory health, such as inventory turnover. Try using advanced analytics to pick up on the lucrative yet subtle signals that can be missed by the naked eye. Better inventory management sees the power of harnessing all sources of data, both internal and external to see your products differently. Improve your inventory control with better forecasting.

Modelling scenarios

Quantify and make sense of more than just comparing last year’s data to this year. Better inventory management tools allow managers and owners to build predictive models to see what could potentially be driving variations in sales for each and every kind of customer profiles.

Using proven data and analytic capabilities with better inventory management can help business owners and managers learn more about their customers, inventory stock and overall operations. Deeper and actionable insights allow managers and owners to easily sense change, by using trends and gauging the future more accurately ensuring to better manage growth and profitability. The best time for better inventory management is now, by having solid foundational systems that are scalable to keep up with businesses growth.

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Melanie - Unleashed Software
Melanie

Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.

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