3 Common Inventory Management Challenges

By April 24, 2020Supply Chain Management

inventory management challengesAs a business owner, you should consider automating your warehouse processes and embracing smart warehouse management systems to help facilitate growth. If you are not utilizing the latest warehouse management innovations to streamline your inventory process you are causing yourself pain and increasing your costs. Too many business owners are taking a “wait and see” approach when it comes to modernizing their warehouse management systems and that can lead to a lot of frustration and wasted time.

Common Inventory Management Challenges

Not having real-time visibility of your inventory that you need to successfully run your business can lead to breakdowns in the fulfillment process that will end up costing you time and money while also causing a lot of frustration. Here are some of the common challenges businesses face when trying to run a warehouse manually instead of embracing warehouse management technology.

1. Inaccurate Inventory Counts

Modern businesses need to be able to move quickly. That means knowing what your inventory count is at all times and getting updates in real-time. You cannot run a modern business without real-time, accurate inventory updates. If you don’t give your warehouse processes a technology upgrade you will have discrepancies between the counts in the ERP system and the actual item counts. You won’t know what your actual inventory count is and you’ll be forced to take on higher costs to keep track of the inventory. This is frustrating for you and bad for business. Today, businesses that use smart warehouse management technology for inventory tracking and order fulfillment are the ones that are going to be the most successful.

2. More Inventory Counts

When you don’t have accurate, real-time inventory counts that you can rely on you’ll have to perform more frequent physical inventory counts. That means spending time and money doing nothing but counting your physical inventory to make sure it matches what is in the ERP system. Streamlining the inventory count process by implementing a smart inventory management system will lower your labor costs while also giving you more accurate tools that you can use to manage your physical inventory.

3. Not Scalable

The key to success is growth. If you are relying on manual processes to track inventory and run your business you are hurting the scalability of your business. Your business can’t grow organically if you are still using manual processes to keep track of your inventory. As your business grows and you need to stock more inventory you will end up being held back by the time it takes to do manual counts. You also won’t be able to reap all the benefits that come from growth because you will be paying more in labor hours and costs to manage that extra inventory. Automating your inventory management processes means that you can scale your business quickly and efficiently without wasting money or time.

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