Every business knows the importance of keeping track of inventory. It is a crucial requirement for the overall health of a business. There can be no business if there is no product. When you have a small business, inventory management is relatively easy; however, it could get a bit more complex as your small business expands into the world of e-commerce and sells across multiple channels.
1. Repeat Customers
You want your customers to keep coming back to you every time for their business needs. One way to make sure of that is to have everything they need every time they come. Use techniques such as dropshipping or backordering to keep them happy.
2. Accurate Forecasting
Don’t plan based on sales last month, use a robust inventory management software to stay ahead of the demand curve by analyzing sales over time, who bought it, how much revenue is generated and more. This will help you set proper reorder points and safety stock.
3. Inventory Turnover
Inventory is capital. Optimize your inventory turnover ratio by using some inventory management techniques and keeping less of your slow-moving products while increasing the stock of profitable products.
4. Cutting Costs
Having more inventory means more carrying cost, more security and more labor. Using effective inventory management techniques can help in holding the right amount of stock, avoid wasting money on slow-moving products and invest money into the areas of high return.
5. Employee Efficiency
Empower your employees to help you manage your inventory efficiently. Training employees to use a robust inventory management software and other tools to help them make better use of their time.