Many retail business owners dread by hearing the word; inventory, because stock inventory management is very closely related to calculations, a lot of calculations! Maybe it does not matter if there are not too many items in the warehouse. However, for those who stocked thousands of items in their warehouse, the stocktaking process will definitely take a lot of time and energy.
This is what makes stock inventory management very crucial for every company. Just like cash flow, if managed properly, inventory can grow your business, and vice versa can break your business when you neglected.
Stock inventory management definition
Stock inventory management is an activity carried out by a company to record information about the company’s stocked goods. Such information is for example the weight, dimensions, amounts, and item location.
The main purpose of stock inventory management is to minimize the costs incurred for storing goods in the warehouse. Costs can be minimized by knowing when it’s time to replenish items or buying materials to make your merchandise.
Why stock inventory management is important for business
Good inventory management will maintain your merchandise availability. On the other hand, if you don’t manage your inventory properly it will make you lose money. You will lose potential sales because the item your customer is looking for is not available. You also wasting money because you bought too many items.
That’s why you need the inventory management system to help you automate the inventory management process, and saving money that you have to spend. Here are 3 benefits of using an inventory management system:
If your business focuses on selling items that have expiration dates such as food, there is a real chance the food will go bad and you can’t sell it to your customer. An inventory management system will help you manage your inventory so that you can avoid spoilage completely.
Avoid dead stock
Deadstock is similar to spoilage, though it’s not completely the same. You have to throw away an expired item because it is not edible or can be used anymore. You can’t sell deadstock merchandise because it’s already out of trend, out of style, or simply becomes irrelevant. To avoid these you can implement an inventory management system in your company.
Save on warehouse costs
If you don’t own warehouses to store your items, then you have to rent one. The cost you have to spend on warehouse rental varies depending on how many items you have. The more items stored, the more costs you have to spend. Stock inventory management can help you save your warehouse rental costs.
Inventory management not only avoids you from losses but also has the potential to increase your company’s cash flow. When you use the inventory management system, you will know the exact amount of goods in your warehouse. Thus you can order goods from suppliers at the right time, and your sales will go without any disturbances.