With the hustle and bustle of the online retail industry, a business may find itself in a unique spot when providing products to customers. In general, many organizations focus on making the most sales and getting the most products out. However, the task of accurately managing inventory levels often falls does not get enough attention. Roughly 46% of small businesses do not use an automated system to track their inventory levels. Paper receipts and manual documents tend to be how organizations keep track of inventory. However, some issues may arise without automated or efficient systems in place. Businesses might find themselves with too little or too much inventory, which, in turn, can snowball into other costly issues.
For example, without an automated tracking system being used, you could order too many materials which could become a waste if there is an expiration. Buying too much inventory can cause waste in capital and an increase in carrying costs. Reversely, ordering too few products may disrupt the manufacturing process by missing sales. When organizations cannot maintain an accurate inventory, they lack the control to determine product turnover rates and picking/packing efficiencies. Businesses may also have no way to understand seasonality or during short-term and long-term forecasting.
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Tips for A Balanced Inventory
Tracking inventory and maintaining the correct material level in a warehouse assures businesses they have enough products to satisfy customers while effectively saving on warehouse overhead. An organization implementing inventory management and tracking system can help an organization prevent missed orders, maintain a balanced inventory, and monitor transactional history. For more information and tips on the importance of an accurate inventory, make sure to check out the resource below. Even if you’re business is well-established, these tips could be integrated at any point in the operation.
Infographic created by WSI, a 3pl fulfillment company