22nd September 2019

4 Signs You Need Better Inventory Management

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Are you looking for ways to improve performance, make customers happier, and reduce costs? Inventory management software is an excellent way of smartening up an organisation and raising efficiency. When deciding whether the upgrade is worth it, there are several signs to look for.

Here’s a quick guide to the five most important ones.

1) Stock Shortages

Whether it is because you are caught off guard by a seasonal fluctuation, or whether it is an on-going headache, stock shortages are black clouds hovering over any mismanaged warehouse. The problem is that big decisions about quantities are notoriously challenging to get right, and even the most organised mind can become lost amongst the boxes. Inventory management software delves into the numbers and uses advanced analytics to increase accuracy.

2) Quantity Discrepancies

The more errors in a system, the more things start to unwind. Quantity discrepancies affect multiple organisational components, including cashflow and forecast projections. A company is as reliable as its data, and when the numbers don’t add up, it’s time for a rethink. Accurate inventory management techniques take care of quantity discrepancy headaches.

3) Wastage

Waste is a cost issue. Increasingly, it is also an environmental one. From squandered electricity to the problem of disposing of unsold goods, wastage is a Corporate Social Responsibility (CSR) minefield. The root cause of this inefficiency is uninformed planning. Like trying to gauge the depth of a murky pond, poor inventory control involves guesswork and chance. Inventory management systems use detailed analytics to offer a precise picture of stock flow, giving managers the information they need to make the right choices.

4) Too Many Question Marks

One of the clearest signs that something is amiss is generalised uncertainty. If managers are not sure what is needed, how much is needed, and when, the system is not working properly. If disagreements about stock and quantity are infecting meetings, the system is not working properly. If two different strategies both seem equally valid, the system needs looking at. These problems can bubble away under the surface and are often accepted as being normal stressors in the organisational melting pot. However, they are signs of unhealthy inventory management. High quality systems erase the doubt and offer precise answers.

What Next?

To get the latest information about how inventory management is transforming the organisational space for the better, speak with one of our advisers today!

Image source: Pixabay

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