What is inventory management? Small business has the potential to crunch the numbers and reach sky-high limits. All they need is proper guidance in managing the key aspects of the business. Mostly all small business has one specific pain point, and that is “Inventory Management.” You may ask, “Why inventory management?” Because its the epicenter of all other business processes. Every aspect of a business, whether it be purchases, sales, shipping, returns, etc. are directly or indirectly related to Inventory Management. Neglecting this is like signing for your own doom. Where does it stand in order fulfillment? As mentioned earlier, inventory management is related to every major aspect of your business. As such, one can say that the inventory management system stands as a priority In order fulfillment. This is due to the fact that in order fulfillment, retailers make sure their customers get the right product delivered on time. To achieve this goal, retailers heavily rely on inventory management to fulfill their customer’s demands. A minor fault in your inventory management system, and you can end up selling a product you don’t have in stock. Importance of inventory management in small business - Failure Story We, as humans, make mistakes. It’s no surprise that we all learn in life from our mistakes. The mistakes of others are like a warning symbol for us not to travel down that road. Not only small businesses but giant companies have been a victim of taking inventory management lightly. One such example of poor inventory management is from “The Hershey Company.” Hershey Company is one of the world’s most recognized chocolate manufacturers. They experienced a massive loss when $100 million worth of Kisses and Jolly Ranchers inventory failed to reach stores on time for the Halloween season. - Better demand forecasting The new year is coming soon. All the shopping enthusiasts are gearing up for this festive season. How is your preparation going on? You must be probably filling up your inventory with the latest stock wishing that people love them and buy from you. Well, before you start filling up your inventory, ask yourself:
Importance of Inventory Management is that it holds all your previous data and with the help of AI can guide you to answer all these questions with ease. - Let the inventory flow (implementing FIFO) Another key Importance of Inventory Management is, it helps you to implement FIFO. Why is it important? Because when you invest in some item and have it in the stock, you want to resell it and make money out of it. Over time, if you forget about the item, it’s just going to be sitting over there and eat up your valuable inventory space. Inventory Management Software eases up the process without human intervention in the process. Thus, saving you from having dead stock in your inventory. - Can manage multiple marketplaces from one instance Inventory Management Software can help you in managing all your marketplaces from one single dashboard. This will help in safeguarding you from overselling. Moreover, the inventory management system integrates with your accounting software and shipping partners. This eases your task as you now have one unified platform to look at all the major aspects of your business.
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