Whether you work in the retail, construction or health sector, there’s always a steady stream of inventory management problems rushing your way. The most common of these issues is that of asset shrinkage – the difference between an inventory item’s book and physical count.
This usually stems from recording errors, theft or wastage, and can severely impede growth. To avoid these setbacks, it is important to address problems with your inventory management. For this reason, you need optimum stock levels and an intuitive inventory control system in your arsenal.
With the corporate climate becoming increasingly volatile, companies need better, more pro-active strategies for all business domains. Business inventory is extremely integral to all aspects of your business. This is why you need to automate it.
With an inventory control system, pull down operational costs and provide better services to your customers. Ensure that your solution offers key inventory management features so you can rest assured that you’re getting your money’s worth.
A robust stock control system should:
- Alert for and update any changes in inventory levels
- Identify the real-time location of each of your stock items
- Help you plan the amount you need to procure and warehouse
With that said, it’s important to learn about the key problems that a stock control system serves to combat.
1. Seasonal demand fluctuations
Most businesses experience seasonal differences in sales. These are drastic changes in demand that may impact your profits negatively if you do not stock up well in advance. Continuous stock-outs can hurt the viability of your business.
For this reason, you need to forecast product demand during a particular season, and order stock before the season begins. It is ideal to have some buffer stock ready to cover for the amount of time you’re restocking. You may also optimize the stock levels of unpopular items.
Stock control software keeps your transportation and storage costs low. With real-time data, it is easy to deal with fluctuations and make arrangements in advance.
If your inventory records are outdated and not representative of the actual amount, it is hard to monitor stock levels and respond promptly to temperamental demand. A stock control system comes with a real-time database that updates stock levels as soon as items are sold or moved across warehouses.
Accurate data enables you to stay on top of your stock levels and plan ahead of seasonal variations. Stock control software also has a Purchase Orders module that automatically alerts your vendors when your stock reaches a specified minimum threshold level.
With better stock control, cut down the extra time you spend manually drafting and dispatching purchase orders to your suppliers.
2. Inaccurate stock information
Inaccurate inventory data results in a buildup of obsolete stock, improper inventory levels, and higher holding costs. It also impacts your business workflow.
Without a dedicated stock control system, locating items becomes a real challenge. Employees scurry around looking for the items that they need before they can carry out important work tasks. This results in lower productivity levels and lost revenue, eventually hurting your business in the long run.
With stock control software, you can keep an eye on inventory checkouts, locate each piece of equipment and track which employee has ownership of an item. This enhances the visibility of your supply chain, thereby strengthening control.
Iron out your business operations by using reliable stock data that saves your employees’ time and your money!
3. Less internal communication
A business with integrated functions can sail smoothly through the corporate terrain. Internal communication among various departments of a business is necessary to keep the company and its operations intact and running. This works just as well when it comes to inventory management.
Employees in the sales, procurement and distribution departments need updated information for forecasting and order scheduling. It is no secret that communication is key here.
Lack of a common platform to communicate and discuss stock control and management strategies means your teams have no clue of what others are doing. Each department may end up working on different goals, leading to one big mess.
With stock control software, enhance communication and bring all your departments on one page. The solution links each of your teams with their respective usage of the stock. It also enables you to customize and send email alerts to members in each department for smooth internal collaboration.
Keep all your employees in line with company management strategies. With better coordination, minimize workflow disruptions and enable your company to grow.
4. Untrained and unqualified stock management staff
Many businesses out there have top-notch inventory management practices but lack a trained workforce to carry those out. Furthermore, many inventory items have special care and handling requirements that employees are unaware of.
In this pursuit, it is key to train your employees on how to utilize and warehouse your inventory properly.
Stock control software relieves you from the toil of manually training each and every employee. You can simply upload relevant user guides and instruction manuals pertaining to each inventory item in the software database. Whoever wishes to use a piece of equipment, can quickly pull up its details and download the manuals from the database.
Nobody likes bothering other team members for trivial problems. Make your employees self-sufficient by uploading guides for them, and empower them to carry out their tasks more efficiently!
Effective stock control software gets your business rolling
Effective stock management is crucial for any business. It is the foundation of your entire supply chain as it tracks the procurement, warehousing, and sale of your entire fleet.
Inventory management issues, if not dealt with promptly, can jam your growth and pull down profits. Having a rock-solid stock control software on board can minimize the adverse impact of these problems, increasing your profits and productivity levels so you can grow without any hiccups.
EZOfficeInventory is the leading stock control software system. It allows you to track, maintain and report on inventory stock from anywhere, at any time. We offer a free 15-day trial – no credit card required!