Are you carrying too much inventory in your warehouse? If you are, then you are losing a lot of money every month hanging onto all that inventory. You could also be paying a higher cost than necessary to keep your warehouse full. Having too much inventory and not knowing how much inventory you really have are mistakes that can end up putting you out of business if those mistakes aren’t corrected.
Eliminate Excess Inventory With An Automated Inventory Management System
The best way to fix the problems associated with carrying too much inventory is to make the switch to an automated inventory management system instead of relying on a manual inventory counting process. An automated inventory management system can help you reduce excess inventory in the following ways.
Only Order Inventory You Need
If you are ordering new stock on a regular basis because you think you need additional items then you are spending money you don’t need to spend. Better inventory tracking using an automated inventory management system will help you order less often and order fewer goods when you do order and that will save you money. With real-time inventory tracking you will be able to place orders when you need more stock so that you are not paying for items you don’t need to carry.
Stop Carrying More Stock Than You Need
Your business is paying a cost for every item that is sitting in your warehouse. You are paying money to store those goods by paying for warehouse space, electricity, labor and other expenses. If your warehouse is filled with items that you don’t need to have in stock you are wasting money holding onto a lot of items that you don’t need. In order to get those items out of your warehouse you will either need to discount them heavily so that they will sell, sell them at a wholesale price, or return them to the supplier. But in all of those possible scenarios you are losing money. The best way to manage your overhead costs is to make sure that you are not storing a lot of items that you don’t need. With an automated inventory management system, you can adjust stock levels based on the data that the inventory system reveals.
Better Manage The Stock You Have
If you have perishable goods that you are storing, you need to be actively managing those items to be sure that they are sold before the expiration date. If you don’t sell items before they near their expiration date, you could end up having to discount a huge lot of products in order to get them sold, which costs you a lot of money. And worst case, you could end up with spoilage, which will costs your business a lot of money.
Prepare For Seasonal Sales
Many businesses need to start increasing the stock they have on hand as busy shopping seasons get close. A state of the art inventory management system has the automated tools and real-time metrics needed to show you which items are already selling well and which ones are projected to sell well during certain seasons. You can use the inventory management system to place strategic orders and fill your warehouse with just the items you need for the shopping rush.
Automated Inventory Management System for Macola and SAP Business One
Ready to get started with an automated inventory management system? WiSys Agility solutions have been designed to achieve efficient Warehouse Management, Supply Chain Management and Inventory Management. Contact us to learn more.