4 Common Inventory Management Problems
When it comes to keeping a business running smoothly, few areas are more important than inventory management. By addressing this crucial part of the supply chain, you will always have needed items for manufacturing and other business activities, while also ensuring that goods reach your customers in a timely manner. Unfortunately, inventory management can become extremely inefficient and error-prone. You can resolve your problems with RF-SMART by integrating with NetSuite to provide automated solutions. Here are some of the common issues the implementation of such a system will help you avoid.
1. Excess Inventory
Businesses are typically worried about running out of stock — but quite often, the opposite problem occurs. When you are unable to track inventory properly, you might order stock when it isn’t needed. As a result, you could end up with excess inventory that is taking up space in your warehouse. With more items than demand can keep up with, you could lose money because you don’t have space for more profitable items.
Demand forecasting can be incredibly challenging, and without software that tracks demand patterns and inventory levels, it can become near-impossible. With the right program, you can track these patterns over time to determine periods of peak demand. This will allow you to adapt inventory levels in your warehouse accordingly so you are better prepared for peaks and lulls in the sales cycle.
3. Accounting Errors
When your business fails to accurately track inventory and supplies that are coming in and out of your warehouse, significant financial issues can result. Without full tracking of the supply chain, costly accounting errors can result, such as placing double orders or failing to account for how much space is available in the warehouse. Even a relatively minor error can stress your company’s bottom line.
4. Poor Service
Companies live and die based on the quality of their service — and sound inventory management will play a crucial part in how customers perceive your brand. Your ability to manage supply and demand will ensure that you deliver products in a timely manner. Optimizing delivery and lead times will increase customer satisfaction, which in turn will help you acquire and retain customers so you can further increase your profit margins.
By streamlining your inventory management with an integrated solution like RF-SMART, you will eliminate the inefficiencies that interfere with this crucial element of running a business. By ensuring that you always have adequate inventory, you can deliver better results for your customers and ultimately improve your bottom line.