Every business has its uniqueness and challenges. Currently, inventory management is an essential element for the survival of an organization. Knowing the challenges will help enterprises become more strategic planners and avoid the most common inventory management problems. Moreover, if a business does not have reasonable control over inventory, there is always the possibility of incurring losses. It is essential to invest in a good inventory application.
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You can avoid the following problems with inventory applications:
1. Inventory damage
If you handle items with expiration dates, such as food or even cosmetics, they can become rotten or unusable if not sold on time. A faulty product means that your investment, along with your potential profit, will be wasted. A solid inventory management system is the ultimate protection against stock spoilage. As a result, you’ll have access to real-time data to track your product’s lifecycle, and warehouse workers can organize items to make sure old products sell first.
The expiration date isn’t the only sign of damage. You cannot sell deadstock for several other reasons, such as outdated products or are no longer relevant. Often an inventory is declared ‘dead’ after being on the shelf for twelve months, and there is no longer any market demand. This is usually determined through sales reports over a certain period.
Generally, deadstock occurs due to inaccurate forecasts. An efficient inventory application will provide the knowledge needed to order the correct quantity when required. Sales reports can help recognize if an item is a dead weight before buying it.
3. High storage costs
Warehousing costs may change with how much inventory you store during a particular season. When your store has too many products at once or ends up with products that are hard to sell, storage costs will also go up. Inventory management systems can help predict what items are and are not and how much a selling company can do. You can also integrate this system with a purchasing system to make it easier to plan inventory costs, control inventory, and manage orders. These accurate estimates help you make more precise purchasing decisions, avoid high storage costs and save your business budget.
4. Incomplete inventory visibility
Knowledge of your supply chain directly impacts how you control inventory, from vendors to customers. Knowing your real-time inventory levels is essential to avoid significant problems, such as being out of stock.
Having complete visibility on the inventory at all times will ensure a complete and comprehensive picture of stock conditions. This can be tricky, especially if done manually; switching to an automated inventory management system will help see the bigger picture of your stock.
5. Operational inefficiency
Standard operating procedures will affect business efficiency. There are many procedures out there because that’s how it’s always been done. The problem is that company never plans the system or part of the general strategy. More likely, it was a reaction to a situation.
To make full use of your employees’ time, you need to review their daily procedures and find areas to increase productivity. Moreover, every new inch of warehouse space costs you money. To overcome inefficiency, you need to think and plan strategically.
Inventory application from HashMicro offers accurate stock control, raw material management, and other powerful features to ensure you always have a comprehensive view of your inventory. You don’t have to guess when and how much inventory to reorder with the inventory app. You can also integrate this inventory system with the accounting system to assist you in analyzing the inventory costs from each of your products. Through an easy-to-use system, you can take control of your business and keep your customers happy. Contact us to find out more.