There’s no doubt that gaining control of your stock and learning how to manage it is one of the most challenging things you could do for your business. The best way to think about stock is to treat it like cash – if you wouldn’t leave $100 notes lying around your warehouse, why would you leave your stock unchecked and waiting to go missing? Learning how to efficiently manage stock is critical.
More and more businesses are thinking about how to optimise their stock management strategy – using tools and equipment to control their inventory in order to balance customer needs while minimising the cost of carrying excess items.
Over the years, I’ve worked with numerous companies across Australia and New Zealand to help them successfully gain control of stock inventory in their businesses. I’ve seen the most common challenges small to medium businesses face, and have provided access to the tools they need to overcome them.
In this month’s blog, I’ve outlined the three reasons small to medium businesses should have control of their inventory, and the ways taking control can benefit an organisation.
3 reasons effective inventory control can optimise your operational effectiveness
1. Mitigate risks early on
Traditionally, the recording of stock is done through a time-consuming, labour-intensive yearly stocktake — a highly inefficient process that inevitably leads to inaccuracies and loss in your stock levels.
Having doubts about the accuracy of your stock-on-hand reports costs you down the line. Ultimately these mistakes get recorded as shrinkage, resulting in lost revenue and, sometimes, the perception of theft in your warehouse.
By implementing a new system that allows you to efficiently record and track all of your inventory, you eliminate inaccurate stock records and minimise time spent on stocktake. Download your copy of the HARMONIQ Effective Stock Management eBook to learn how adopting inventory control through an integrated ERP system will mitigate risks in your warehouses.
2. Eliminate excess or back-orders
What tools are you using to optimise your ordering process?
Many warehouses rely on guesswork to order stock, and as a result stock levels don’t match what is required to meet demand. This means you either don’t order enough of what your customers require —resulting in lost sales, dissatisfied customers and reputation impacts — or you have excess inventory and dead stock, meaning money wasted and an impact on your profitability.
Most simply lack the tools to optimise their ordering, and instead rely on simple programs like Excel or pen and paper processes even when their business has far outgrown them.
A system that is fit-for-purpose and allows you to gain control over the ordering process would be a powerful tool, and our studies show that an integrated inventory system can result in a 7.5% decrease in the frequency of out-of-stock inventory. Find out more about how to gain control of your stock ordering in the HARMONIQ Effective Stock Management eBook.
3. Visibility over your entire stock
If you have multiple warehouses and you’re still using basic systems for inventory management, it is virtually impossible to have visibility over all of your stock. A lack of visibility ultimately causes all of your other tasks to be time-consuming and inaccurate, such as transferring or sending out stock.
By eliminating basic processes, you can gain valuable insights into your business. Our studies show that, paired with an integrated inventory system like HARMONiQ, 95.4% of your outbound orders are delivered to customers complete and on time. You are also much more likely to have online visibility into in-transit shipment status.
Maintaining accurate and visible stock levels across the organisation enables all departments who rely on accurate stock detail to work more efficiently and make smarter decisions. To learn how to implement an inventory control solution that provides access to real time, accurate data and can also simplify work processes within your organisation, download your copy of the HARMONIQ Effective Stock Management eBook.
How can I start leveraging effective inventory control for my business?
Organisations driven by effective inventory control have the edge over their competitors because they can easily track, record, and order stock, eliminating inefficiencies and helping them to minimise excess and keep their customers happy.
Download the HARMONiQ: Effective Stock Management eBook today as your next step guide on becoming an organisation driven by optimised inventory control.
If you would like to see the impact effective stock management can have on your business, then click here to request a demo of HARMONiQ and I’ll be in touch shortly.
Drew Arthur is the Managing Director of Micronet Systems and is focused on helping business leaders overcome inefficient sales, inventory, and customer relationship management practices by leveraging cutting edge technology. If you want to gain better control of the sales processes in your business, click here to organise a demo to see how HARMONiQ Business Tuning Software can make a difference to your business.