Solve Your Top Inventory Issues to Spur Success
For anyone who deals with manufacturing, stocking supplies, or retail, inventory management is one factor that can make a major impact on your bottom line. With so many steps involved in the process of securing, receiving, stocking and shipping, it’s no surprise that inventory mistakes happen, but these mistakes can be costly and even hold your business back from growth. The good news is that most inventory problems can be prevented with the right tools and strategies. Here are some great tips from The Virtual Consulting Firm.
Issues with Filling Orders
Having happy customers is essential for building a strong business, because happy customers are the ones who return, plus they’re more likely to recommend you to their friends. And as Nicereply explains, those elements affect team morale.
For businesses that provide a service or sell a product, the customer experience starts with how well you’re able to deliver that service. This is why it’s so important to avoid fulfillment issues, such as customers receiving the wrong item or having to cancel an order because you don’t have enough stock to fill it.
Most customers will be somewhat forgiving, but the best line of defense is to prevent these mistakes from happening in the first place. Most often, order fulfillment issues happen when there’s a disconnect between what’s going in your warehouse and what’s happening in your main office (or store front).
The best way to avoid this disconnect is to use an inventory management system that keeps track of inventory updates and metrics in real-time. Additionally, you can keep your team focused by using easy repeated scheduling to enhance efficiency and ensure you have enough coverage on the warehouse floor to handle order fulfillments. By not doubling up or leaving gaps, you make the most of your team and stay better organized.
Finally, don’t rule out using process mapping to organize your project. By using a template from a company like Miro, you can create an easy-to-use, visually appealing process map that will help all of your team members understand exactly what needs to happen when you’re filling orders and managing inventory. By having everyone on the same page, you help reduce the possibility of human error throughout the process.
Discrepancies With Stock Counts
Using well-chosen warehouse management software can make a big difference in improving the accuracy of your stock count, but for times when your stock count is off, you’ll want to know what’s causing the discrepancy. To start with, choose a logical method for conducting inventory counts. Then, learn about the most common reasons for stock counts to be off. These issues usually come down to human error (inaccurate counts or mislabeling), loss due to damage or expiration, or loss due to theft.
When you have human errors in inventory counts, such as mistakes with recordkeeping or paperwork, these are usually easy enough to discover by reviewing your records. This is another reason why it’s so important to have a strong system for inventory management. Using the right software reduces the number of these mistakes, but when they do happen, having access to inventory data makes it easier to pinpoint the source of the problem.
If you’re having issues tracking your inventory, it may be time to call in a professional to help. You could hire a warehouse manager, or as an alternative, you could bring in a freelance ecommerce services professional to help build a web dashboard to manage your inventory. You can find candidates through online staffing agencies; simply look over what types of services they offer, reviews, and expected payment.
Sales Are Off… Or They Aren’t Increasing
Between inventory counts, you may notice that sales are slow, or your business may not be growing as fast as you’d like. Other times, as EazyStock points out, you may not even realize that obsolete inventory is sitting in your warehouse. These problems happen when you have too many of certain items, which eventually leads to a depreciation in the product’s value.
Some depreciation or obsolete inventory happens for virtually all businesses, but this is a number you obviously want to minimize since it amounts to lost revenue. Buying bulk quantities can work for you, but only under the right circumstances, and only if you can afford it. At the same time, you don’t want to experience the opposite of this situation: not having enough of an item to meet consumer demand. The problem with this scenario is that you’re losing out on potential sales. The solution for both of these problems is better forecasting, and to do this you need to have accurate sales data.
With all of these inventory problems, the solution almost always begins with having accurate data. Your success as a business owner isn’t built on one single action (or inaction). However, smart inventory management is one essential piece of the puzzle that you don’t want to miss.
The Virtual Consulting Firm offers the services of the best consultants, software and web developers, information technology (IT) and business professionals with all of the skills and experiences needed to satisfy the requirements of all of your project(s). Contact us today for more info! info@TheVCF.com
This article was written by a guest writer, Adam Evans.
Adam Evans has worked in a variety of educational roles, from substitution to full-time teaching to administration positions. Currently a full-time private tutor, he likes to spend his free time exploring museums and natural wonders of the West Coast with his wife and their sons.
Photo credit: Pexels
