Have you tried in vain to convince yourself that your manual inventory management practices are working and are actually helping you to increase your inventory turnover rates? Have you relied too heavily on excel spreadsheets and tables to manage the complexities of your supply chain? Most importantly, how often have these processes let you down and left you with inaccurate inventory counts? Few companies ever take the time to answer these questions, let alone even ask them. Instead of relying upon enterprise mobility hardware to better manage their warehouse, they instead rely upon antiquated and outdated processes, ones that can not possibly keep pace with the speed of their business. Stronger warehouse management starts by doing away with these outdated processes and instead relying upon real-time tracking through mobility management solutions. If your enterprise wants to increase its inventory turnover rates, then it must finally put an end to using manual processes. Those processes may have worked when you first started, but they can not be a part of any long-term supply chain solution. So, how can the right enterprise software help your company better manage its warehouse and increase your turnover rates?
Archive for the ‘Inventory Management’ Category
How can upgrading to an inventory management software platform reduce the costs associated with inventory audits? In order to answer this question, think of how time-consuming, redundant and repetitive the dreaded inventory audit can be. Think of how much it costs to perform these audits and the frustration you encounter when uncovering inaccurate inventory levels and counts. At the end of every quarter, and every fiscal year, employees manually count inventory in order to reconcile actual inventory against what is reported on the “books”. Some companies force their employees to give up their weekends, while the vast majority must cover overtime to perform what most agree is a mundane task. It is both time consuming and costly. However, it need not be this way!
As a small business owner, it is probably about time your enterprise update its approach to warehouse management, approaches that rely upon enterprise mobility solutions that not only increase your customer response times, but also help to lower the costs of data entry errors? One where manual inventory counting methods are done away with entirely, and ultimately one where reconciling monthly inventory costs, levels and stock counts aren not predicated on problematic excel spreadsheets and inaccurate graphs and tables? Most importantly, your customers certainly deserve a vendor who is on the ball, ready to provide the answers they so desperately need!
Does your company track the impact of lost sales on your inventory costs? Surprised to hear that lost sales is viewed by many companies as a cost of inventory? Do not be shocked! It is important to note that any cost resulting from how inventory is managed, can be seen as a cost of managing inventory. If a company loses a sale because of low inventory counts, or because of a lack of adequate inventory, then that lost sale is a direct cost of inventory. It is ultimately why some companies establish gross profit objectives for their procurement department. If the company loses a sale, then it could lose a customer and that can eventually lead to a loss of market share. So if losing a sale is a cost of inventory, what can companies do to reduce its impact? More importantly, what does it mean when a company encounters too many lost sales due to low inventory counts?
How does your company handle customer returns? Do you charge customers a restocking fee or merely accept the return at no charge? Perhaps you’ve been led to believe that charging a restocking fee will damage your customer relationships or that it will negatively impact future business. Maybe your concern lies with how your competitors will react to your company charging restocking fees when they don’t. Regardless of why, your company must charge a restocking fee. In fact, there are simply no excuses for not charging customers for returning product. This is especially true for those instances were the customer is merely returning product due to pricing or a mistake in ordering. Granted, defective product is one thing but functional product is another. So why should your company charge a restocking fee? To answer this question, consider the following points below. Continue reading “Restocking Fees, Should Your Company Charge Them?” »
Managing slow moving inventory is never easy. There’s the constant concern of the inventory becoming damaged or worse, ruined beyond repair. Companies must therefore be proactive in selling this inventory when the opportunity presents itself. In this regard, a number of companies become concerned with the impacts and costs of slow moving inventory on their bottom line. So, how does inventory become obsolete and what strategies can companies adopt to stop it from happening?
When thinking of slow moving inventory, think of the company’s financing costs to retain and hold inventory for extended periods. The longer it’s held, the higher the costs and the more likely the inventory will become obsolete. To quantify these costs, Continue reading “Inventory, How Does it go From Slow Moving to Obsolete?” »