Inventory is at the core of a company’s revenue, profitability, and customer satisfaction. Interestingly, retailers are losing an estimated $50 billion dollars a year by not properly controlling one of their most important assets.
Inventory control systems have been developed to help automate the process of tracking and managing a company’s inventory. By having hardware and software based tools that track and automate the inventory process, a company can increase their productivity and maintain their competitiveness.
Inventory precision is a direct result of effectively tracking inventory flow. It identifies what is going in and out of a company’s stores, warehouses and online websites. In order to understand what inventory is available, it is important to have a clear understanding of what is available in across those inventory channels. Having centralised data can be an indicator of where supply stocks are low, what products are selling, and where old inventory may need to be cleared. This real-time data can identify when it’s time to reorder products and can see when the next shipment is going to be delivered. With all of this information accessible in a consolidated and centralised location, a company can make informed decisions about its inventory.
Precise Tracking With Inventory Control
With an automated inventory management system, precise tracking is achievable. Precise tracking can reduce human error and increase accuracy across numerous channels of a business. Critical processes such as purchasing, selling, and delivery should automatically update with an automated inventory tracking system. They can then provide updated information on product quantities, statuses, location and revenue, as soon as the activity occurs. This real-time, updated information can be very beneficial for providing a holistic picture of how a business is running. It allows gaps to be identified faster and improvements to be made quickly, keeping the business moving forward.
Supply and Demand
Proper inventory control allows a company to effectively meet customer demand. With inventory control, a company can not only meet customer demand, but in turn maximise their revenue. Moreover, utilising buying tools allow you analyse products, vendors and categories to make strategic purchases for the company. Having an inventory control system provides the company with the necessary tools to effectively analyse costs. Once you understand your average cost, you can use this data to negotiate with vendors and price products accordingly so you preserve margins. One such example is the supply and demand of beer.
An automated inventory control system will typically involve automated reordering. This prevents the buildup of excess inventory. Cloud based inventory software should track when stock isn running low. In the case of low stock, the software can automatically trigger an alert when stock falls below a certain level. Therefore, the purchasing department can optimise supply levels through this automatic tracker.
Inventory control can improve a company’s inventory management processes and overall business performance. It allows companies to stay competitive, track information in real-time, and reduce the risk of error. By tracking your largest asset, a company is making a huge investment in themselves and their customers. Therefore, inventory control is an integral part of prosperous business.