Why Inventory Management Should Be Part of Your Company Culture

September 20, 2016

An ever-increasing number of consumers research a store’s stock ahead of time. A few minutes online, and they can see the desired product is in stock and ready to buy. Unfortunately, many arrive at the store and discover the item is nowhere to be found. It’s frustrating for customers, embarrassing for employees, and bad for business. Proper inventory management strategies are the best defense against mistakes like this.

Overstocking Costs Money

A big issue for small businesses is too much inventory. Projected demand and actual demand don’t always match, leaving you with an overabundance of product that isn’t selling. While in theory it doesn’t sound bad, the reality can cost you a pretty penny. Wasted shelf space is a missed opportunity to display something that will actually sell. If you use a warehouse, then you’re running up more costs each month the item stays put.

Under-Stocking Costs Business

Customers can be frustrated when they expect to find an item in your store and don’t. If they experience this disappointment multiple times, it’s likely to prevent them from coming back. Inventory management protocols ensure your most popular products are stocked and that you avoid this problem.

You Can Prevent Fraud

Each year, American stores lose a large amount of money with lost or stolen items. The discrepancies in numbers can cause confusion when placing orders and organizing products. Inventory management systems more effectively track when products are moved to the shelves and keep your investment safe.

Inventory Management Provides Important Data

With the power of software, it’s easier than ever to notice your customers’ shopping patterns. For example, on Sunday evenings you have a spike in coffee sales. The trend may be difficult to notice when reviewing paper receipts. Inventory management software helps you plan ahead by displaying shopping patterns before the sales boom.

In modern business, efficiency is key. Implementing inventory management strategies is a great way to keep your company running as smoothly as possible.