Without inventory control, ability to respond to demand becomes impossible
Inventory management is a tall task for any business these days, given volatile consumer demand that leads to products remaining on shelves for longer than they did in the past. While counseling with accountants to track order trends and conducting an in-person count of materials does have value, the use of inventory management software results in better returns for businesses.
Operating with a reduced inventory limits the likelihood of unnecessary surplus, but it also could lead to demand not being met if there is a sudden surge in orders.
"It's always a balancing act, but today's marketplace will often allow for a smaller inventory on hand with same-day or next-day delivery on additional inventory," inventory management expert Michael McNeilly told The Huffington Post on July 18. "Having good control of your inventory allows you to not only offer a wider selection of products, but also can free up significant levels of cash flow while still providing the service your customers demand."
By keeping regular inventory and assessing products that are currently on-hand, businesses are better able to gauge the movement of materials and what percentage of their inventory may need to be replenished. If an organization is unable to fill an order due to a lack of inventory, customers could come to distrust that company and take their business elsewhere.
Of course, savvy business owners can avoid this arduous process altogether by using comprehensive inventory management software to track the movement of goods in real-time. This management software can also help businesses to as they involve other aspects of sales, including ecommerce, marketing and merchandising, into one streamlined process, according to a Multichannel Merchant story from earlier this week.
Ultimately, these programs allow facility managers to reach more informed business and forecasting decisions, ultimately freeing up more cash in the process and guaranteeing that customer demands are met.