- 43% of American small businesses don’t track inventory, or do so manually.
- 34% of businesses have shipped an order late because they accidentally sold a product that was not in stock.
- The average retail store in the US operates with an inventory accuracy rate of just 63%.
- Inventory distortions (shrinkage, stockouts and overstock) cost businesses worldwide an estimated $1.1 trillion.
- Inventory accuracy can be boosted from 63% to 95% by implementing item-level tagging.
With a systematic inventory management system in place, the accuracy of product orders and tracking improves. Ideally, you should have real-time software in place to ensure no item in your inventory is left untracked.
Imagine walking into your warehouse looking for a product and having no idea where to look for it. If you take too long to find it, your customer might just leave. An inventory management system lets you keep your warehouse organized to meet your present and future orders. Products can be grouped according to your wish and placed in designated spots in the warehouse.
Customers hate it when they get shipped the wrong item. These are the kind of instances that hit customer experience hard and makes customers not want to do business with you. This can be avoided to a great extent by implementing a proper inventory management system. This will not only improve customer experience but also protect customers from issues like refunds, keeping them loyal to your business.
Through proper inventory management, a business can plan its inventory for maximum turnover and profit. The cost of inventory and production also has an impact on the overall profits made. The quicker you can sell
off your inventory, the faster you can generate revenue and accommodate new inventory.
If your business offers perishable products like food items, what would you do if you are not able to sell them? They will most likely go to waste. An inventory management system will help you avoid this spoilage to a great extent.
Avoid Dead Stock
This is stock that can no longer be sold because it has gone out of style or out of season. You might find it difficult to sell these items even after heavy
discounting. This is one situation that an inventory management system can help you avoid.
Storage Cost Savings
Warehousing is in most cases a variable cost, especially for small businesses. When you have too much inventory or find it too difficult to sell
what you have in stock, your warehousing costs tend to go up. This can be controlled using an inventory management system.
If you are hoping to find more about Inventory Management tactics, tools and resources-download the full guide today!