Let’s take a look at your inventory stock and see how you are managing it. There are a series of common inventory problems that arise. Some issues can be fixed simply and other issues are much deeper rooted. However, if you implement cloud inventory management software to manage your stock, this can alleviate some of the common problems. Check out a few of the reoccurring issues seen and how cloud software steps in to make a positive change.
Customers aren’t used to waiting long times to receive their products. If you can’t deliver a product quickly, chances are that you’ll lose that customer. With eCommerce so prevalent, your competition is just on another tab on your customer’s browser.
Predicting demand is a complicated process but it doesn’t mean that you should frequently be running out of inventory stock.
Maybe you’ve tried to stock large amounts of inventory to mitigate this problem. However, that might lead to an excess inventory that turns into dead stock.
With cloud-based inventory management software, it can track your inventory in real-time. The advantage to this system is the detecting when stocks are low. It can prompt early re-ordering and recognise patterns of buying behaviour. Cloud-based inventory management software can keep working capital and carrying costs low since it operates efficiently. It’s a smarter way of managing your demand and decreasing the risk of stock-outs and excess stock.
If your warehouse looks after products that have expiration dates like food or certain types of make up, then you’ll know the pressure to move date sensitive stock off the shelves. When your products spoil or expire before you can sell them, then it can mean a significant amount of lost profits.
With a cloud-based inventory management system, you can have better real-time data to track the lifecycle of a product. You’ll constantly have up-to-date info on what products are going off. This can help you organise stock better to ensure the products with the closest expiration should be prioritised for sale.
Cost of storing inventory
Seasonal changes in stock can lead to fluctuating warehouse expenses. The more you have on hand, that’s not selling, will directly impact your storage costs. If you’re left with a pile of dead stock, this will be taking up space for new inventory that you could be making money on.
Cloud-based inventory management system can support your business’s forecasting. It can show you what items sell quickly and which ones are in demand, as well as how much stock didn’t sell. It is a more accurate and effective way of forecasting to predict storage needs. It will guide your purchasing choices and save you storage costs in the warehouse.
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.