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The Importance Of A Balanced Inventory Management System

When you run a business proper inventory management is essential for success. Issues with too little inventory can lead to more problems than just missed sales. It can also affect your reputation. Think about it, If a potential customer has chosen to shop at your business and didn’t find the product they were interested in they are significantly less likely to shop with you again in the future. In fact, more than 7 in 10 online shoppers will look for an out-of-stock item elsewhere instead of waiting for it to be back in stock.  If you’re a manufacturer low inventory can also disrupt the manufacturing process. It can lead to disruptions in the production or shipment of goods.

On the other hand, having too much inventory can also lead to problems for your business. Excess stock can increase the cost of storage and depending on your business can be a waste of capital. However, there are a few strategies your business can incorporate to help keep a balanced inventory.

Maintaining A Balanced Inventory

One of the most effective strategies your business can do is use a third-party logistics to manage your inventory. Outsourcing inventory management means you can benefit from expertise in manufacturing while you focus on serving your customers. Another way to improve your inventory management is to utilize technology such as barcode scanning and inventory management software to help keep track of every material and product needed. Using software that can provide instant updates, forecasting, and transaction histories give you the visibility your business can use to more accurately predict stock levels. Businesses that use an inventory management system with integrated order processing see a gain of 20% in space and 30% increase in stock use efficiency. Of course, you can also take some time to make sure you neatly organize inventory so it is easier to see. This can help make sure products are not lost and are placed in a designated location.

If you are interested in learning more about why proper inventory management is so crucial for your organization, take a look at the accompanying infographic below.

Infographic created by WSI, a 3pl distribution company

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