Business establishments require proper and adequate systems for managing their stocks. Without these systems, they can not track abandoned cart items and are likely to incur losses. These businesses will be forced to offer discounts on overstock commodities. Regardless of how they respond, lack of proper systems to track stocks would lead to loss of revenue.
What is Inventory Management?
In business, the practice of controlling and overseeing the components used by a company to produce commodities is known as inventory management. This practice also oversees the storage, use, and ordering of items or products for sale. Enterprises need inventories to represent investments that they have on products to be sold.
Business ventures incur expenses for insuring, storing and tracking inventories. However, if too much money is spent on tracking them, there would be a deficiency in finances needed for day-to-day operations. Ventures that succeed in inventory management are those that have created a purchasing plan. This plan is designed to ensure that products are available with respect to their demands. It also keeps track of the available stock and its use.
Benefits of Inventory Management
1. Increased Information Transparency and Sales
Inventory management helps business owners to know when commodities are manufactured, shipped, packed, picked, and received. It also lets them know when they are under-stocked or over-stocked. Enterprises that effectively monitor their stocks record 2 to 10 percent sales increase.
2. Lower Costs and Shorter Lead Times
Effective stock-tracking practices lead to reduced inventory holding costs and reduced inventory write-downs or write-offs. These practices also result in a 50 percent decrease in lead times.
3. Increased Employee Efficiency and Improved Delivery Performance
Employees who work for companies with effective stock monitoring practices are more productive than their counterparts who work for companies with poor monitoring practices. This is because they spend less time on managing results from inventories. Furthermore, the flow of commodities to clients is improved by real-time inventory updates.
4. Accurate Planning and Decreased Stock-outs
Proper inventory management enables companies to have the exact amount of commodities. It also ensures that their decision-making processes are guided by inventory trends. This results in a 10 to 25 percent reduction in stock-outs.
5. Increased Inventory Turnover and Customer Loyalty
Inventory management lets business owners increase the stock levels of fast-moving commodities and keep fewer slow-moving commodities. This practice allows them to optimize the value of items in their possession. It also improves their enterprises' efficiency and accuracy. In turn, customers will trust these enterprises to fulfill their needs. This is because these business ventures have what clients need.
Why Choose Speciality Fulfilment Center (SFC) for Inventory Management Services
Specialty Fulfillment Center was established for those business owners who want to streamline time and curb costs incurred when managing inventory. SFC understands that improperly managed logistics can limit the growth and profitability of enterprises. On behalf of its clients, Specialty Fulfillment Center develops effective programs for inventory management. These programs help clients manage expenses and growth at their ventures.
Our inventory management programs include cycle counts, pallet storage, break pallet, SKU control, and physical inventory counts. They are also inclusive of minimum and maximum level monitoring and activity reporting.