Have you experienced the following scenario? You’ve run out of a particular item in your store and the demand for it continues to grow. This may seem like a welcomed situation. However, being unable to satisfy the requests of consumers only leads to customer dissatisfaction.
How about this situation? You’ve had the same product on the shelf for months and can’t seem to sell it no matter how hard you promote its benefits. Both of the above-mentioned scenarios indicate that you have some trouble managing your inventory. What other signs show you have an inventory management problem?
Are you experiencing inventory shrinkage?
Contrary to how it sounds, “inventory shrinkage” has nothing to do with your products decreasing in size. The term refers to the inability to determine where your inventory has gone. In other words, you have items missing, but no sales records to account for them. As Yitzchak Lieblich of SkuNexus explains, inventory shrinkage can occur because of multiple reasons.
They include “inventory theft, damage, miscounting, incorrect units of measure, evaporation, or similar issues,” he writes, “Studies show that administrative, paperwork, and vendor errors account for 25% of all shrinkage. This means that it can be so easily avoided simply by having a good inventory management system in place to decrease errors.”
Are your products collecting dust on the shelves?
As we pointed out, having too much of any product isn’t a good sign. It shows that you’ve either ordered too much of the product or you simply overestimated its selling power. Most often, it’s a little bit of both. It’s integral that you better analyze your sales numbers over the past year so that you can make smarter buying decisions from your suppliers in the year ahead.
“If your factory or warehouse is full of stock that you have had lying around for a while, you might be suffering from an excess inventory problem,” affirms Stephen Whitehouse on Winman.com, “Having older products in storage with no potential to shift them in the near future means you are taking up space that could be used for newer products. There is also a chance of their value decreasing.”
Are you still using a pen and paper to take stock of the inventory in your warehouse?
Allow us to kindly remind you that the year is 2021! No matter the size of your business, there is no excuse to not use modern technology to help you secure accurate numbers of your available stock.
“Having to do everything manually when keeping track of orders and inventory can increase the probability of human error and undoubtedly require more time than having automated processes,” Lieblich points out, “Utilizing tools such as barcode scanners can help to speed up the warehouse processes greatly.”
For many years, Synergy Merchants’ clients have been taking advantage of our unique merchant cash advance program to purchase new inventory. Of course, the funding can also be used to invest in a viable inventory tracking system. If you are having trouble managing your inventory, please don’t hesitate to call us at 1-877-718-2026 or email us at firstname.lastname@example.org to learn all about how our program can help you.
You can also apply online for a free, no obligation quote!