Inventory control is critical for managing the flow of materials and goods in a business or organization. With basic inventory control tactics and the right tools to maintain optimal stock levels and meet customer demand.
Here are some of the most common inventory management challenges and the solutions to help you overcome them.
Manually tracking inventory across various spreadsheets (not to mention different software) can be complex and overwhelming. It can also lead to many errors and inconsistencies along the way. Even if you’re currently a small business, you’re going to want to prepare to scale, and adopting a centralized inventory tracking system early on is your best bet.
Consider upgrading your manual tracking procedures to tracking software that can automate procurement, reordering, and more. Most high-quality warehouse inventory management systems today can provide excellent tracking through centralized, cloud-based databases that you can update and access in real-time.
Limited visibility is one of the top concerns for businesses that handle large amounts of inventory going in and out of a warehouse. This can be counterproductive and lead to incomplete, erroneous, and even delayed shipments. Improving inventory visibility is crucial, since it’s directly tied to customer experience. But it’s often a concern that managers don’t address right away.
Consider adding images and product descriptions to your inventory database to ensure you receive the right stock and find it on time. It takes a bit of effort, but it will improve the purchasing and receiving process tremendously. This tweak alone can help you enhance visibility and prevent misplaced inventory from hurting your bottom line.
Daily shifts across global supply chains can complicate inventory planning and management operations. However, it’s one of the necessary evils of supply chain management. You will need to find a way to work with manufacturers and wholesale distributors and adjust to changes in lead times regarding shipping your inventory.
Consider creating a data-driven supply chain model to minimize or eliminate any disruptions in your supply chain. This way, you can accurately anticipate possible risks and disruptions before they happen, as well as have more control over the delivery process from start to finish.
Overselling products (and thus stockout) is another common challenge in inventory management. However, using historical data to understand seasonal trends can help you anticipate customer orders and keep the customer experience satisfactory.
Use inventory planning software to automate reordering based on predetermined stock levels. This will help safeguard against overselling and keep stock levels adequately matched to customer demand.
Basic inventory control is indeed a critical component of the supply chain, but it comes with its own unique challenges. To overcome these issues, businesses need to focus on improving their inventory tracking and visibility systems, while making sure they keep up with global supply chain movements. With the right tools in place, you can ensure that your business runs smoothly and efficiently — no matter the complexity of the inventory.
If you are interested in learning how Fishbowl’s flexible inventory management solution can help your business now, you can book a demo.