Does your company need a new inventory management system? Common signs that suggest it’s time to make a change include the following:
If you are frequently running out of stock, you need a better way to track your inventory. Under-ordering, a major contributor to this problem, stems from inventory systems that do not provide accurate data. These inaccurate systems result in products being ordered inaccurately, causing shortages and surpluses. Continuously running out of stock is an issue that should not be taken lightly. It will lead to many missed opportunities to sell to your customers. The right inventory management software will quickly show you an accurate representation of the type of products you have in inventory as well as how many of those products, keeping your stress level under control, purchasing orders carefully placed, and your customers happy.
There are just as many costs and margin ramifications of having overstock situations as there are in running out of inventory. A balanced approach to acquiring stock is crucial for a successful business and to ensure you are not overspending on filling your warehouse. If those in charge of your purchasing do not have a proper inventory management system to rely on they will not purchase appropriate quantities of products. Being overstocked may force you to sell products at a loss in order to clear your warehouse in preparation for new product arrival. A good inventory management system will empower your business with the tools it needs to forecast the right levels of stock and utilize comprehensive sales forecasts. It will pay your business dividends in the future.
3) Manual Counting is a Frequent Occurrence
Manually checking the accuracy of your inventory and auditing for potential discrepancies can be a useful exercise that should be done periodically but should certainly not be a frequent undertaking. If you are solely relying on manual counts to gain an understanding of your inventory, it can become a very tiresome and time-consuming task. You and your team are only human – mistakes are bound to happen. The proper inventory management software will keep your manual inventory counts to a minimum and encourage a much more efficient and accurate tracking of your products.
Not knowing the details of your company’s inventory is a sure sign of needing a new inventory management system. If you have frequent questions about your quantities or values it means you do not have access to the level of reporting that you need. With the appropriate inventory management software, you will have access to the right reports to enable you to make strategic decisions that impact your supply chain. You should be able to quickly and easily see reports to show what you have now, what you have used, what you did with it, etc.
5) You Are Buried in Work
A good inventory management system gives you the ability to control and stay on top of all things inventory. The benefits of having everything under one system are immense. This means ease of access, less clutter, and more structure in your operations. It also means that almost every change in your inventory will be recorded and stored, drastically reducing any margin of error.
In conclusion, a good inventory management system takes care of your front end, back end, and everything in between. It can introduce speed and energy into your business and increase current revenue and profit margins while providing new growth opportunities.
Fytics inventory management system will help you solve all the above problems!
Manual counting will be almost completely eliminated and inventory time reduced by up to 60%. Average inventory accuracy levels are 98%, ensuring you always know what products you have in stock and how much of each. By implementing Fytics’ system and having access to this essential information, you will be able to save up to 30% in food costs.