Inaccurate inventory data can cost you. Tracking inventory offers many opportunities to save money and just as many to throw money to the wind. When reviewing your inventory tracking process here are some points to consider:
- The time spent maintaining the inventory. Is it as simple as possible and collecting only information that is needed or is it cumbersome and/or over complicated.
- Is it 100% accurate. If an item is out of inventory, but not realized until it is needed what is the cost to get that item. Consider both hours and costs associated with this effort.
- Does everyone have easy access to the inventory or are calls and emails going around asking people what is available.
- Is the inventory organized and documented regarding its location or do people spend time finding items.
- Are there integration options with suppliers, shipping and/or other internal systems or is data getting manually entered when it doesn’t need to be.
- Auto adjust your min and max inventory requirements by utilizing automatic predictive inventory analysis. Using historical data, the sales pipeline and seasonal information helps with having on hand just what is needed, but not more than needed. This can help with cash flow, as well as, minimize the storing of inventory that will just sit there and take up space.
Taking the above items into account when reviewing your inventory tracking process and software to maintain can maximize your operations and sales profit margins.
Regardless if you are tracking millions of dollars in inventory or are making sure to have in stock all your office supplies for your team, when items run out without notice it can get expensive and time consuming.