What Your Customers Really Think About Inventory Management?

Inventory management is the basic and most important thing in business. Business cannot run without inventory management, it maintains a stock of the company and keeps eye on it. If inventory management is not handled properly it can result in a business either losing money or wasting money by stocking too much inventory. And this helps the owner to know about when there is a need for material in business. Inventory management can be done through small business accounting software.

BENEFITS OF UNDERSTANDING INVENTORY MANAGEMENT

• There is an increase in the sales of goods
• Improvement in delivery performance
• Increase in employee productivity
• Better inventory control, ordering & planning
• Tracking and transparency
• Accurate order fulfillment
• Reduce cost
• Keep business profitable
• Prepare a business for the unexpected.

So these are some important benefits of understanding inventory management

IMPORTANCE OF UNDERSTANDING INVENTORY MANAGEMENT

• Good inventory management leads to a more organized warehouse
• Saves time and money
• Increase efficiency and productivity
• Keeps the customer coming back for more
• Improves the accuracy of inventory orders

DESCRIPTION-

• More organized warehouse- A good inventory management strategy supports an organized warehouse. If a warehouse is not organized. you will have a difficult time managing on your inventory. Many companies optimize their warehouses by putting the highest selling products together and in easily accessible places in the warehouse. It helps speed up and order fulfillment process its keeps customers happy. 

• Save time and money- Inventory management can have real-time and monetary benefits. keep track of which products you have on-hand or ordered.you have to save yourself the effort of having to do an inventory recount to ensure your records are accurate. Good inventory management strategy helps you save money that could otherwise be wasted on slow-moving products.

• Increase efficiency and productivity- These devices will help eliminate manual processes so your employees can focus on other - more important – areas of the business Inventory management devices, as like barcode scanners, inventory management software.it  can help drastically improve your efficiency and productivity.

• Keep customer coming back for more- It’s a fact that good inventory management leads to what you are constantly striving for - repeat customers. If you want those hard-earned customers to come back for your products and services, you need to be able to meet customer demand quickly. 

• Improves the accuracy of inventory orders- Proper inventory management helps you figure out exactly how much inventory you need to have on-hand. It will help prevent product shortages and allow to keep just enough inventory without having too much in the warehouse.

Inventory management that will save your money

• Avoid spoilage
• Avoid dead stock
• Save on storage cost

1. Avoid spoilage- if you are selling a product which has an expiry date for example- food materials, makeups, beauty products etc. then it becomes very necessary to sell those products and avoid unnecessary spoilage and waste of product. Stock clearance is very important for inventory management and to save money.

2. Avoid dead stock- Deadstock means the stock which is no longer in use and you cannot use that either it may be expired or out of stock, out of style, out of season etc..

3. Save on storage cost- you just hear about the term warehousing here it means that when you stock the material and after that, you find difficulty in selling that it means that the cost of storage automatically goes up. So you have to save that storage cost

Inventory management improves cash flow

Inventory management improves cash flow. Remember inventory is the cash which you have already paid in cash, and you’re going to sell it for cash, but while it’s sitting in your warehouse it is definitively not cash.

What is inventory management and it’s important?

In simple terms, inventory management means that to look forward towards the stock. For understanding about business, one should know that how to control inventory of business because inventory management is something which is the most essential and crucial part of a business you must know where your business is standing what is incoming and outgoing processes in business. When you have to order new goods, nowadays inventory management can be done by using some software like GST software.

Author Bio:  
Priyanshu Yadav is an I.T. engineer and freelancer SEO Consultant. He is working with new entrepreneurs. Nowadays he is working with a new accounting software named Merrchant.