When running a supply chain, your margin for error can be slim, especially if you are a small business. With the rapid growth in retail, maintaining an accurate and up-to-date inventory is vital. Low stock can lead to much more than missing sales, it can damage your company’s reputation. This can hurt current and potential customers if they become frustrated by the lack of inventory. Also, if manufacturers run out of materials it can lead to delays in production or even a halt. On the flip side, having too much inventory can cause waste in capital or an increase in carrying costs. Depending on the industry, your products could deteriorate or drop in price.
Balanced Inventory Strategies
Even though an inaccurate inventory can cost your organization, there are plenty of steps you can take to ensure a balanced inventory. In fact, optimizing operations in your warehouse can save 20% to 50% of your warehousing costs. One of the most effective ways to improve accuracy is to tag inventory. Tagging provides real-time information so you can stay on track even in the current moment. It also provides inventory reports and transaction history so operations can be improved.
Your operation may not be the largest in your industry, but a well-managed inventory can help you get a better time for fulfillment along with pricing to your customers. To learn more about the benefits of an accurate inventory, take a look at the accompanying resource below.
Infographic created by WSI, an eCommerce fulfillment company