Wholesale businesses should re-evaluate their inventory and order management software regularly by identifying headaches in their stock management and taking small steps to make these better. Improving inventory management software is one way and will benefit the business by reducing warehouse costs and freeing up more time. However, for those still unsure about moving to a new system, here are some common troubles that you could be leaving in the past…
TradeGecko will help you better manage your inventory, saving you time and money so you can focus on growing your business instead.
It’s not uncommon for wholesalers to use programs such as Excel to track their inventory when they’re first starting out – however, as they grow in size, they’ll quickly find that these such programs are highly inadequate. However, for those who are still unsure about moving to a new system due to the costs involved, as well as the learning curve, here are some common troubles that you could be leaving in the past…
According to a study from IHL Group, overstock and stock shortages cost retailers a mind-blowing $1.1 trillion globally in lost revenue. Stock shortages: Not having enough stock is one of the worst administrative issues that can happen, but it does. Plenty of businesses have had to turn customers away because they simply don’t have the products available to sell them. Growth faster than expected can leave staff rushed off their feet to the point that they neglect stocktakes and find themselves having to shut the door on customers… customers that might not come back.
According to a GT Nexus study involving 5,000 adults in the US, UK, Germany and France, 57% of shoppers blame retailers or manufacturers when a product is out of stock. These disappointed shoppers take their cash elsewhere – and the businesses lose out on not just these sales that should have happened, but also the entire Customer Lifetime Value (CLV) of these shoppers.
A well-adjusted inventory management system and well-tuned software tells you in advance that stock is down, so you never have to say no again.
Overstocks: For wholesalers who sell products with expiry dates, having a proper inventory management system in place will help you avoid unnecessary spoilage and wastage due to overstocks. Even if your products don’t expire, you’ll still want to minimize “dead stock”, which is inventory that is irrelevant because it’s gone out of season or out of style.
Tracking inventory can be hard, especially if it’s stored off-site or away from other operations. With stock moving between warehouses at the hands of human error, the odds of losing inventory are quite likely. Unfortunately lost inventory (due to both carelessness and theft) equals lost income and that’s something we best leave back in the past. Inventory and order management software such as TradeGecko has a tight grip on the incoming, outgoing and stock on hand, so that the likelihood of items going walkabout is minimal.
Ineffective order management and delivery management can jam up the system and prolong the completion of a sale longer than necessary. You want to get that product out to the customer as soon as possible, so they’re happy and you can move on to the next order. But a poorly conceived inventory management system doesn’t cater to high volumes of customers, each of whom have different demands. Stock management software allows you to record individual requirements and service large numbers of customers without compromising on customer service.
With so many administrative tasks to complete, it’s easy for businesses to get caught up in operations and to ignore information right in front of them. Understanding how inventory moves can be a huge strength for businesses, telling them what sells well and what doesn’t. Knowledge is power and a failure to understand your own business leaves the door open for competition. Inventory management software not only tracks your stock, but educates you on how it performs in your business, so you can use this information to make more accurate forecasts and make better, and more strategic decisions.
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