Effective inventory tracking means you can be able to tell exactly how much ware you have and pinpoint the location of that inventory at a given point in time. For small and medium businesses to succeed, inventory tracking has to be part of their business model.
This is especially true when you are selling your product online. With just a couple of clicks, shoppers around the globe can be able to view the product and even compare it with any other similar products that may be available. And even if you only operate from a physical location, you will still need to display your items to walk-in customers in a professional, flawless manner. But while good display might attract customers, only actual sales will drive your business forward. And for that to happen, inventory tracking has to be at the heart of everything.
Inventory tracking has a number of advantages.
1) Avoiding Stockouts
You have finally convinced the customer that your product solves their problem. They are ready to give you their money. But after rummaging through spreadsheets and shelves, you find out that you’ve run out of the item they want. What happens? The customer will most likely walk away for good and take their business to your competitors.
An efficient inventory control system like DataQlick can eliminate the possibility of such an event happening. You are able to keep tabs on product levels at the point of sale as well as movement of items in and out of the warehouse. Tracking software can also be a good forecasting tool for small businesses. Based on sales activity, the software can predict how much you need, say, in a day’s time.
2) Avoiding Overstocking
In the absence of good inventory management monitoring, you might end up with too much of certain items – overstocks. Inventory is tied-up capital. It’s actually money that can only make more money through sales and purchases. The longer your product sits unsold, the greater the possibility that it will spoil and never sell. And even if you manage to pull off a sale, you will have to forego some of its value.
You can only avoid overstocking if you have real time information about the exact number of units. Relying on a manual count is outdated and ridden with human errors, which can be very costly especially when you’re attempting to get your business off the ground.
3) It Saves You Countless Hours
Almost 50% of small and medium businesses with 11-500 employees do not track inventory. A lot of time goes into running a successful business, like acquiring raw materials, creating a point of sale, writing descriptions, and marketing. It’s important to utilize short cuts and channel more time to issues that matter the most.
Automated tracking can boost the overall health of you business. Without it, you will be paying your employees to write down sales information, dig through files, do countless emails, and run in and out of the warehouse all day. That is money lost.
Good inventory management software can free up the employees to focus on more valuable tasks. They are likely to take it as a sign that you care, and you will be happy because you will have a bird’s eye view of your products at all times. It’s a win-win!
4) Small Business Vendor Management
Making a sale is one thing, delivering in time is a different one. If you develop a habit of making lots of late deliveries, you will most likely develop a poor customer service reputation. You don’t have to make unrealistic promises to your customers simply because you don’t know exactly when the vendor’s shipment will arrive at your doorstep.
Inventory tracking brings about quick turnaround times that boost your customer service ratings. An online inventory app can help you to track items en route to your warehouse.
The bottom line is that inventory tracking is vital to the success of your business. If you don’t have real time inventory information, you cannot have an accurate account with regard to performance. The market out there is competitive. Do not allow stockouts and other operational inefficiencies limit your growth.