Having good management of the products you have, which ones you need to stock or knowing if you have an over-stock is essential for your business growth.
Optimal inventory management is one of the foundations for developing a profitable and financially healthy business. It not only allows you to avoid merchandise losses and keep costs under control but also take advantage of every sales opportunity and have more satisfied customers.
However, there are many entrepreneurs who neglect this process, and who sometimes do not even have an administrative system that allows them access at any time and from anywhere to information about the existence of a certain product, or the expiration date of another. So if you’re not spending time on this topic, you can’t miss this article on the benefits of good inventory management for business growth.
In addition, permanently monitoring the warehouse and the movements of its personnel allows better business decisions to be made because it offers valuable information to predict demand and make smarter purchases of inputs for production or merchandise for sale. Let’s discuss some of its other benefits.
Improve customer satisfaction
With the advancement of online commerce, consumers have become more demanding in terms of the availability of the products they are looking for and delivery times. And in the face of a bad experience, such as sending one merchandise for another, the first thing they will do is look for other options, either through physical or digital channels. That is why it is so important that you rely on a business administration platform that includes a friendly inventory management module. With it, you will not only make logistics more efficient but also adjust stocks and anticipate periods of increased demand.
The over-production, losses by careless handling of goods, shelf life, and product uncontrolled ant theft are problems that small and medium entrepreneurs do not usually serve time. And that means having losses that, when they start to accumulate, have a direct impact on the results and profitability, especially in the case of businesses that sell food and other perishable products, such as fresh flowers.
It allows detecting new trends in the market
If you receive weekly information on movements in the warehouse, you are not only going to minimize errors such as excess stock or sales of merchandise that is not in stock. You are also going to get key data on, for example, a product launched a month ago, and one that is having unusual demand. This will allow you to put yourself ahead of your competition and make timely decisions about the production of certain lines, or the re-supply of imported merchandise.
Control theft and waste
With inventory management software, you will be able to cross data on, for example, how many of certain products were in the warehouse a month ago and how many have been sold since then. Thus, it will be easy to detect those losses caused by dishonest employees, but also those that have to do with the handling and transfer of merchandise. And then, you can take appropriate measures to optimize the operation of the deposit.
Finally, good inventory management will allow you to instantly tell a customer if a product is available or not, keep your e-commerce site updated and make quick deliveries. If you are able to maintain this efficiency, you will be able to quickly position your business as the best option among your target audience, and in the medium and long term, that will mean a loyal customer base, higher income, and better results.