Profitability and good inventory management are connected. Good inventory management boils down to accountability. Using a robust asset tracking software, you need to account for what’s coming into and out of your inventory. A study by the Gartner Group has shown that 70% of all businesses have ineffective inventory management systems in place, to the extent that the difference between their actual and projected inventory can be as large as 30%!
For the majority of businesses, inventory is a major asset, but if inventory is mismanaged it can create endless problems such as inconsistent high or low stock levels, miscommunication between warehouses and delays in fulfillment. It’s important to protect your business from poor inventory management. Unfortunately, many wholesalers rely on employees to manually monitor and react to changes in inventory. This approach exposes a business to errors and increases the risk that can impact its reputation. In order to be effective, asset management solutions, therefore, need to not only manage assets but to find a way to make your assets part of a larger managerial ecosystem.
Many people cannot resist a good ghost story. However, while a good ghost story is harmless, ghost assets are not. The term ‘ghost asset’ refers to a fixed asset in a general ledger that cannot be accounted for because it is physically (or digitally) missing or otherwise rendered unusable. It has the appearance of ‘vanishing’ unless you have implemented an efficient asset tracking software. It would be fun, but we won’t be looking at the famous TV series, The Supernatural, The Walking Dead, or American Horror Story as examples for fixed assets. Although, one could argue that the equipment used in making these series like cameras, sets, props, etc, could certainly be tracked as fixed assets. Continue reading
Just because you are not running a $60 million company doesn’t qualify you as the business that doesn’t have many assets to track, protect, and value. The illusion is that asset management is for large corporations only. The question is what smaller businesses do? Note them down on some organizer? There are cloud computing companies that offer asset tracking software for small business, not just the enterprise firms.
As per a survey conducted by Statista, the forecasted size of the SMB cloud service market in the United States was expected to reach $25.2 billion in 2015. Efficient asset tracking software for SMBs help them make regular, everyday business operations faster and more organized. Small business inventory management solutions can enable companies to boost productivity and effectiveness of workplace without spending a fortune on software implementation and training sessions. Continue reading