Inventory management can make or break a business. It is much more than simply having the right products and maintaining accurate stock counts—it is having the right products at the right time in the right amount. For product-based business owners, this is a difficult tightrope to walk. Not having enough stock on hand runs the risk of losing sales while having too much stock ties up funds and can cause business owners to lose money.
There is no shortage of challenges when it comes to inventory management, but business owners introduce more problems when they manually manage it. Manual stock counts and spreadsheets may work in the early days, but as sale volumes and inventory increase, it becomes unfeasible for a business’s long-term growth and success.
Manual inventory management not only takes immense time and effort, it is also prone to error, slow to update, and doesn’t give business owners analysis on performance. Even the smallest mistakes or misjudgments cost valuable time and money when it comes to inventory.
What is the solution for business owners who need to unlock more time and money to invest in their business?
Automated inventory management software can help businesses majorly optimize and streamline their entire inventory process and easily integrate into their accounting software. Not only do businesses benefit in terms of time and money saved, there are now opportunities to improve every phase of your inventory’s lifecycle.
Keep Accurate, Real-Time Counts
Inventory is constantly changing. Throughout each day, there are sales, returns, exchanges, and damages to log. Keeping accurate counts of all your stock and balancing orders with returns can quickly become time-consuming and error-prone with spreadsheets. Irregular inventory management and human error leads businesses to lose track of the units they have. This can result in ordering too much or too little, which are both costly in their own ways.
Using an automated inventory system keeps accurate counts of your stock for you, updates your inventory as soon as orders are placed, and notifies you when you need more. Business owners can quickly see what products they are running low on, see what’s been selling well, and place orders before they run out. As a result, businesses can detect problems and opportunities early on.
Prevent Excess Stock and Dead Stock
No business wants to see their products languishing and collecting dust on their shelves. Automated inventory management alerts businesses to low-turn stock early on and gives them the best chance to sell it before the product becomes outdated or expires. For example, businesses can employ sale strategies, such as special promotions, and give the product extra marketing attention to turn the stock without incurring a loss. This improves the lifecycle of every product, saves money, prevents waste, and avoids costly cuts into profit margins.
Avoid Missed Opportunities
Nothing hurts more than missing a profitable opportunity, especially for growing businesses. A business finding itself in a stockout situation hurts for many reasons. Not only do they lose valuable revenue, they also risk backorders, canceled orders, customer dissatisfaction, and their customers turning to competition. Maybe the business missed a reordering point or didn’t realize how fast units were turning over. Either way, a simple mistake can lead to a domino effect of problems and loss. Automated inventory management helps business owners stay on the pulse of consumer demand and aware of popular products that need to be reordered.
Forecast and Anticipate Needs
Demand forecasting is an important part of successful inventory management. What do your customers want and when do they want it? Sales statistics and analytics allow businesses to make more data-driven decisions. With easy and quick access to reporting and metrics, businesses can anticipate customer needs, forecast their sales trends, and make strategic decisions that give them an invaluable competitive edge.
These actionable insights are priceless for growing businesses. Knowing the seasonality of your products and leveraging the customer trends unique to your business ensures that your investment pay off.
Improve Cash Flow
Cash flow is especially important for small-to-medium-sized businesses and emerging businesses. Having cash tied up and sunk in dead stock can, unfortunately, be the beginning of the end. An optimized inventory management system ensures working capital is not restricted, so these businesses can continue to keep up with costs and grow.
Plan and Be Ready for Growth
Spread thin by spreadsheets? Spreadsheets are outdated and will not be able to handle the demand and complexity of your inventory management. Plan and be ready for your business’s growth. Contact Sun Sign Designs to discuss and find an automated inventory management software that will work best for your business.