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How Inventory Management Helps Your Growing Business

May 19, 2021

If your business is on the fast track to success, you need to handle your growth efficiently to maintain momentum. Organized, effective inventory management systems help you track your products and save you money. When you implement a comprehensive program for tracking inventory, you improve customer satisfaction, enhance employee productivity and increase revenue.

The Problem With Excess Stock

You may think it is a good idea to stock up on inventory and take advantage of vendor discounts and reduced shipping costs. However, having too much stock can cause problems for your business. You do not want to stall your growth by ending up with products you cannot sell. If you have leftover seasonal items, your customers expect significant discounts. You likely have to price them at a loss to move the inventory.

Storing too much stock costs you money and reduces your available space for products you need to have on hand. It is not a good idea to have large amounts of capital tied up in your products. When your company is experiencing rapid growth, you need the funds for increased operational purposes.

The Consequences of Low Stock

Conversely, if you do not track your inventory effectively, you may end up selling out of popular merchandise. When this happens, your customers become frustrated and may choose to shop elsewhere. Your business reputation suffers, and consumer loyalty decreases. A study reports that retail operations lose nearly half of their patrons' intended purchases when they run out of stock. Most people will buy the desired item somewhere else or not purchase it at all. Tracking inventory enables you to order the correct amount of products for an optimal return on your investment.

The Effects of Inventory Shrinkage

When you have a system to track your inventory, you reduce loss due to theft and damage. Retailers face issues such as employee theft, shoplifting, vendor fraud and paperwork errors. Paladin Security explains these problems can result in significant financial losses. You can minimize the rate of loss by managing inventory correctly and systematically. If you maintain regular inventory data, people are less likely to steal from you.

The Importance of Employee Scheduling

When your business is snowballing, you need more employees and more shift coverage. To have enough workers to appropriately manage your inventory, it is essential to have a comprehensive system for scheduling staff, assigning tasks and tracking their hours. One of the best methods to achieving good scheduling practices is by utilizing shift scheduling software programs that automate tasks for you.

With this technology, you can set up repeating schedules that benefit both you and your staff. You can easily make necessary changes and contact affected employees in a prompt, efficient manner. If you fail to manage your scheduling correctly, you may find yourself paying excessive overtime or having insufficient staff, which affects your operational capabilities and bottom line.

The Value of Time Tracking Programs

Another beneficial solution is to incorporate time tracking features into your scheduling system. Keeping track of employee hours is crucial but can be challenging if you have team members who work off-site. Use mobile time tracking apps to determine your employees' productivity and compensation.

Automatic clock-in and clock-out alerts help prevent timecard errors. Some systems allow you to integrate GPS technology to give you information on the location of your team when they have to make sales calls or conduct other business away from your workplace.

Unorganized or mismanaged inventory and scheduling can lead to financial loss. When you have a rapidly growing organization, you need to ensure you have comprehensive management systems and procedures to maintain growth and secure profitability.

For better time tracking, project management, professional invoicing and more, turn to Plutio!

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