Running any business successfully requires keeping your inventory accurate and up-to-date. If you want to stand firm among your competitors, then you must keep your inventory accurate. Losing control of the inventory will automatically lead to losing control of your business profits. In addition, the out-of-stock situation always leads to disappointments for customers and losses for retailers and in-store shoppers.
“It has been estimated that retailers got a loss of $1.75 trillion worldwide because of mismanaged inventory.”
You will be surprised to know some of the interesting facts about accurate inventory management -
- The cost of warehouse space in the United States is around $5.08/sq ft.
- The top reason for any startup to fall is not managing inventory properly.
- About 75% of supply chain management experts are aiming to enhance their inventory management tricks accurately.
- Approximately 40% of supply chain management and transportation representatives say that they lack to reevaluate their warehouse locations.
- 67% of warehouse plan find it easy to use mobile devices that help in speeding their whole inventory management work.
- The topmost error or issue in the warehouse today is “human error.”
- 7% of small businesses still do not track their inventory.
Moving quickly towards some of the top benefits of accurate inventory management -
1. Get full knowledge of your business
Having full accuracy in your inventory will offer you the best knowledge of your business. Managing your inventory properly will give you a better understanding of the product requirements for fulfilling customer demands. It will ensure that you will never face an out-of-stock situation anytime in your business. Having a track of inventory will ensure that the orders for items customers are placing are not out-of-stock. Also, you will never feel tension on the shortages of products or excess inventory in the stock.
2. It saves time and money
The accuracy in inventory helps you to save time as well as money. When you keep track of items available in the stock and the orders you had ordered, there remains no need for inventory recounting. Using inventory management software, you can update the stock in real-time. This way, you can always stay up-to-date with the inventory information without any confusion or tension. Keeping proper inventory track will let you know about the performance of your products’ selling, like which products are more liked by customers and which are not.
3. Enhances productivity and efficiency
All the employees and staff of the warehouse love using an accurate inventory system. The reason behind so much liking lies in the ease of the system having barcode scanners and inventory management software. With barcode scanners, the staff can identify the exact location of items placed in the warehouse. Also, there remains no need for manual entry of items as you can scam every item with a barcode scanner and keep track of it. It will not only boosts work efficiency but productivity among employees.
4. Upgraded customer service
Inventory records are mandatory to manage when customers make calls or write anything with inventory-related queries. Providing quicker answers to your customers will make them happy, and it will give a good impression of your company. Knowing the exact error or problem that customers have with your product will help you solve it as soon as possible. If you are late in answering customers’ queries or issues, there are full chances that the customer will fly away to other companies.
5. Cost control and savings
Inventory tracking or inventory management software is the best strategy for expense control. However, sometimes you may have to send items or products at the last minute, and for that, you might need to pay a little extra for the expedited shipping. This strategy is good when the case is of one or two customers, but it may cost huge in the case of bulk customers. Having an inventory tracker will help control your expenses and save money.
6. Stay up-to-date with your inventory information
It is always challenging to manage your inventory at many locations. At times, employees keep thinking about the information related to the stock by calling each other. Accurate inventory management removes the inventory-related issues, but it keeps track of all the inventory present at multiple locations. Knowing all the information in one place will save you a lot of time and get more leads from your customers.
7. Happy customers
Having accurate inventory reports helps you offer the best customer service. For example, if the customer is complaining that their product has not been delivered, then you must check the report and confirm about the product from the warehouse. In addition, regularly checking your inventory levels will assist you in identifying the wrong shipments. Finally, keeping your stock full and fulfilling customer demands will always keep your customers happy. All this is possible with the help of accurate inventory.
Concluding it all that accurate inventory control is a crucial part of your business. If you aim to stay competitive in the marketplace, you must track your inventory with the help of inventory management software. Tracking your inventory properly will give business owners a clear idea of how their business is performing. So make sure you are well aware of all the inventory management aspects and adopt them in your business.
I believe that Writing is not a competition or fear. Writing is an art, a passion, a love. Applying these thoughts in my writing, I always put my strong efforts while writing on any topic. I love writing and technology is my favorite part. Food is my strength as well as weakness ;)
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