Inventory control is about more than accurate stock levels to avoid overselling or selling the same item twice. Efficient inventory management involves understanding how much profit you’re making so that you spend wisely and produce accurate tax reports and vendor invoices.
Shortsighted inventory control leaves you with:
- Rising costs due to inventory that does not move
- Lost sales due to short inventory stock
- Complete lack of inventory costing
- Lack of information-reporting capabilities with internal teams
The downsides to inefficient inventory management software are numerous and detrimental to the success of your business.
Having the right software, however, helps build the foundation for future business and customer growth by:
- Providing proper inventory costing
- Setting proper min and max levels
- Defining what is in transit, on back order, on hold, etc.
- Providing insight into what inventory is moving and what is not
Without proper visibility, you lose the ability to manage, report and replenish. In the end, improving your inventory software is more closely aligned with striving to achieve operational excellence.
There are 4 ways new inventory control software improves your business:
- Strengthened employee and customer trust An accurate system is a trusted system. Your sales team needs to understand what’s in stock in order to sell appropriately. Selling out-of-stock inventory to customers negatively affects the public perception of your business. Inventory levels must be accurate and reliable if you are to convey professionalism and maintain your reputation.
- Insightful reporting You need up-to-date information to optimize reaction time and provide customers with products as quickly as possible. Plus, when forecasting and ordering more product, it’s important to have a detailed report telling you which items are selling well and which ones require a price reduction. Your business is able to make better purchasing decisions this way.
- Better inventory replenishment cycles Unused inventory is cash that can be freed up for other business expenses. Your aim is to keep as little inventory on hand as possible. An efficient inventory management system allows you to track inventory and optimize levels accordingly so as to free up space and capital.
- Clearer financial knowledge Your inventory is a business asset. If you don’t have a warehouse and your inventory moves from supplier to customer, it’s “cash in transit.” Moving inventory from suppliers to customers is often the costliest part of the sale. Inventory control comes down to cash flow management. If you’re paying suppliers for inventory, you need to see that the order is matched.
Ultimately, Microsoft Dynamics software solutions enhance your insight into inventory management by providing you with:
- Stock Count Alerts
- Inventory Ranking
- Item Classing
- Inventory Costing Methods
- Item Substitution
Inventory tracking and cost control are hugely important for businesses shipping products to customers. Without effective inventory control software, you may be giving away more to your competitors than you realize.
We have experience improving the inventory management of businesses in many industries, including manufacturing and wholesale distribution. If you need help improving your visibility into inventory and costs, consult with Admiral Consulting Group today.