Inventory Planning and Stock control become important if your business is into sales of physical goods to other businesses or consumers. Planning is most times not given enough timing until it too late.
One of the most fundamental problems with inventory planning and stock control is determining the constant balance between having too little stock (where you are losing valuable sales) and having too much stock (where your money is being tied up).
This fundamental issue affects your cash flow, and as the saying goes, “cash flow is the blood of your business”. Therefore, you should block the loophole of either losing or wasting it.
Some Effects of Not Having Inventory Planning and Stock Control in Place
· Not Being Able to Track Inventory:
Without proper information, you won’t be able to determine when to restock, how and where products are, guide against theft, and so on.
· Increased Cost Implications:
Without adequate insights about the quality and quantity of your stock. There is a high possibility of spending money on products that are not profitable, while also accruing more expenses.
· Inventory Shortages and Excesses:
This is when you have too little stock or having excess (tying down money).
· Dissatisfaction by Customers:
If your customers cannot fill their orders seamlessly without errors. The more efforts they put in or stress they go through, the more dissatisfied they get.
· Time Consumption:
With proper inventory software and technology, you can save quality time from manual activities. For example, scanning barcodes can replace manual data entry.
· Employees Frustration:
When inventory planning is not really in place, employees get frustrated when there is a repetition of tasks. Especially when such tasks can be automated.
Benefits of Having Inventory Planning in Place
· With inventory intelligence reporting, it portends a competitive advantage.
· Impressive cost reductions (money is not tied up, storage cost is reduced, etc.).
· With a proper system in place, you offer better service delivery, which makes your customers happy.
· Reduced cost and better business processes translate into more revenue.
· Better inventory management makes accounting tasks easier.
· Compliance with environmental and health issues that can result from overstocking.
· Inventory planning and stock control enable “purchase economies”.
Conclusively, business owners and managers should use business management software to manage inventory. This software will electronically take care of the ordering, receiving, managing, and selling of the stocks.
This helps to reduce the time on inventory planning and stock control activities.
Contact Softcodes today to setup your business management software to take care of your inventory.