Inventory Management: Capitalising on Growth Opportunities

Written by
3 Minute Read
Share Blog:

For a business to achieve growth, they need to prepare for it by being forward thinking. One way to do this is by taking advantage of the latest technologies to streamline the way they manage inventory. There are basic office solutions out there, like spreadsheets, that are good for businesses when first starting out. But if you are serious about growing your business, a dedicated inventory management solution like Unleashed is necessary, as they offer more features than your typical spreadsheet software ever would.

It is common to see small businesses still manually managing their inventory because they haven’t made inventory management a priority. This is likely due to misconceptions about inventory management systems being overly complicated and costly. That used to be the case but times have changed. Modern day Software-as-a-Service inventory solutions are user friendly and affordable. Continual reliance on old and outdated systems will only set businesses back, and could ultimately lead to failure due to not moving with the times.

Improve Demand Forecasting

Demand forecasting is critical for business success. It is particularly useful for businesses that have established a history of past transactions – data that can be processed and analysed for decision making purposes. To accurately predict future demand, decision makers need to be equipped with the right tools to do the job effectively, like inventory management software, which can automate most of the work and be almost error-free.

Having the best forecasting capabilities for analysing trends and past sales patterns will allow businesses to better capitalise on growth opportunities. They will also be able to identify business threats and rectify them before they become a problem. However, even with the best forecasting tools, you can never be 100% sure that your predictions are reliable due to uncertainty and other factors that cannot be easily modelled. Just-in-time is one way to eliminate forecasting altogether.

Optimise Inventory Levels

As we live in an uncertain economic environment, where demand can fluctuate based on a variety of factors, there needs to be a system in place that can match supply volume to customer demand without inflating inventory costs. With the help of inventory management systems, businesses can reduce inventory while still being able to maintain the required service levels. This results in lower inventory costs and frees up cash for more profitable activities that can lead to business growth.

Expansion

To remain successful, businesses need to think like winners. They need to have a vision of the future and not dwell on the status quo. The next step for businesses after starting up is expansion, which may include introducing new product lines or expanding to the internet.

Speaking of the internet, people are increasingly taking their business online to sites like eBay in order tap into broader markets. It allows businesses to boost revenue by selling more of an existing product to new customers, without incurring large start-up costs like you see with brick and mortar stores. Whether you are selling face-to-face or online, the way you manage inventory is still the same. Many cloud-based inventory management solutions offer the benefit of scalability, so as your business grows the software can easily be expanded to handle the growing amount of work.

More about the author:

Share Blog:
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.

More posts like this

Subscribe to receive the latest blog updates