When it comes to your business, the more you know and understand what’s going on the more likely you are to make informed, beneficial decisions. By instigating and maintaining inventory management strategies, you give yourself the best opportunities to streamline your processes, accurately oversee and manage your back of house and in turn optimize your profits. What more could you want. Here we take a look at some of those benefits and why you would look to manage your inventory effectively.
Why would you wing it? Stay on top of things.
When it comes to your business, your profits are your livelihood. So you have to ask yourself, when your income is on the line, why would you shortcut things or do anything on the fly?
Regardless of how big, if your business relies on holding inventory then you need to manage your inventory, and manage it well. By implementing strategies and processes, you can get products to customers much easier, ultimately keeping them happy and coming back for more. And it’s all about staying organized. If you know where everything is, you know how much you hold and how much is coming and going at any one time then you are well on your way to getting repeat custom, and hopefully staying in the black.
Accuracy is your biggest friend.
One of the benefits of inventory management is the accuracy it brings to your business. And accuracy is the biggest factor in you knowing how your business is running and what is going on. By knowing the stock counts, and knowing they are true at the time you are reading them, means you can make informed business decisions. You can look to adjust your supply rates if stock is flying out the door or you can push stock to sale if it’s sitting around collecting dust. And by having accurate stock you will also have a more accurate and up-to-date overview of your accounts.
Spread the knowledge; future proof your business.
Especially with small businesses or businesses that have had employees stay with them for long periods of time, knowledge can become stored in one person’s brain. How to do things, where everything is, and all the processes that get formed all hinge on just a few people. By employing inventory management strategies throughout your business instead, you can start to future proof your business; and you may be ready to start considering 3PL sooner than you think.
By having all the data and processes available to everyone – made easier by hosting everything online and in the cloud with a software system – you decrease the reliance on a certain person. You open up your inventory processes so should you need anyone to come in and get to grips with everything or take over, then they can do just that.
As well, with inventory management systems and strategies in place, should you look to grow your business you’re in a much better place. You’ll have processes that you know work, and you’ll have a much clearer picture on your inventory when you’re looking to move stock across multiple locations.