Maintaining inventory can feel like a delicate balance that is infinitely wavering. If you don’t have enough inventory, the repercussions can set a business back in the form of lost sales. Conversely, if you have too much inventory on hand, it can add up to be a very expensive exercise for the business. Having an effective stock control system in place is a critical aspect of maintaining optimum inventory levels. Online inventory management tools can help streamline this system. By automating the balancing act of inventory management, stock control can be more accurate and better planned. This helps businesses avoid running out of stock or purchasing too much.
Keep Customers Happy
Customers repeatedly purchase from retailers when their needs can be met. This means, the company, whether a shop or online, has the item of desire in stock. If a customer is unable to get that item, they are more likely to go elsewhere. In addition, their loyalty to that company might diminish and they could take all their business to your competitor. Stock control cannot be short sighted. You may think it’s ok, you just lost one sale, when in reality, you lost a good customer. Good stock control keeps customers happy.
Strong Inventory Management
Having an effective inventory management system can make all the difference. This system can track that levels of inventory are monitored properly and new orders are placed on time. Additionally, it provides information that is shared through the business allowing you to mitigate the risk of stock-outs. Online inventory management software can collate a broad spectrum of information about inventory. It allows you to have a holistic picture on the journey inventory goes through, from ordering, shipping, warehouse stocking, levels throughout a quarter and customer buying trends. Online inventory management is not limited to these features, but they are some of the fundamental tools that put your business in the right direction of effective stock control.
Keeping “Shrinkage” in Check
“Shrinkage” occurs when inventory has not been sold, but interestingly is no longer in stock. The elusive product could have been stolen, misplaced or disappeared in one of the inventory processes. With inventory, you start with a specific amount of goods that enter shelves and that are kept in a warehouse. When the goods are purchased, the inventory should decrease by the amount of goods purchased. Unfortunately, sometimes there is less inventory than anticipated, which usually means the goods have been misplaced or even stolen. By analysing “shrinkage” a company can identify areas of improvement, such as security or inventory tracking options to improve stock control.
On the other end of the spectrum from “shrinkage” is when you have too much inventory, otherwise known as overstocking. With overstocking, when goods sit on the shelves too long, the chance of them selling decreases with time. If you aren’t able to sell off the excess inventory, it may need to be sold at a significant discount or just written off completely. Time is the ultimate threat to overstocking issues. Products can go out of fashion or food items can go bad if they aren’t purchased in time.
Stock control is a very significant aspect of a business. With the right inventory management system, inventory levels can be better managed and you can keep your customers happy.