This might surprise you, but effective inventory management affects all aspects of your business — anything from warehouse costs to the ability to fulfil orders on time and accurately. If you have been doing inventory management manually until now, you know how challenging it is to get accurate results. If you make one mistake, it can have ripple effects that can leave negative consequences on your business.
You might not be aware of the impact inventory management software can have on your business. So, take a look at the four common indicators that will help you determine if your business is in need of inventory management software.
Running Out of Stock
If you are continuously worrying about your stock levels, you might be in a bit of a problem. What’s more, if you are noticing that a particular product is frequently out of stock without a logical reason because your marketing and sales are working efficiently and without issues, the situation will lead to many missed opportunities.
Not having enough of one product in your warehouse will probably lead to customers cancelling their orders and taking their business elsewhere. With the right warehouse inventory management software, you will know what you have in stock and how much of it at any given time. Both your warehouse and sales staff will have this information leading to much more effective business dealings.
Unsure of Your Stock Numbers
If you’re unsure of your stock numbers, you’re in desperate need of inventory management software. This also goes for manufacturing warehouses as you might need to deliver products, but you are not aware of your inventory numbers.
That’s where QuickBooks for managing manufacturing steps in. With a system like this one, you will be able to generate reports with a few clicks of a button. That way, you will have a full understanding of exactly what stock you’re carrying. Thanks to systems like this one, you will be able to establish better connections between your business, supply chains, and your customers.
Inconsistencies between the stock you’ve sold and the one you’ve purchased happen often. However, at the end of the year, you need to make sure these numbers add up. Naturally, you can account for some inconsistencies such as spoiled stock or breakages, but if your numbers are way off, there is a problem.
With inventory management software, you will be able to figure out where the discrepancies come from. Not only that, but it will also help you identify any possible theft or damaged stock, which will save you money in the long run.
It’s possible to lose money due to overstocking your warehouse. The key is in a balanced approach. Although it might sound simple, a balanced approach might be challenging for businesses that are not sure how overspending occurs.
Surpluses usually ends in reduced prices to clear out the warehouse, which can eventually lead to losses. With inventory management software, you will be able to forecast your needs, resulting in the right levels of stock. With this empowering tool, you will avoid over-accumulating stock and money loss.