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Inventory Management

Infographics Series: Top 10 Benefits Of Inventory Management

December 5, 2017


It’s time for our next infographics series post! So far, we have discussed the meaning of inventory management and who needs it, along with a real example. In this one, we take a look at “Top 10 Benefits Of Inventory management.”

Here they are:

  1. Increased Sales: An IMS (Inventory Management System) allows you to fulfill orders based on your stock levels and plan ahead. In fact, businesses that actively manage their inventory are able to enjoy a 2-10% increase in their sales figures.
  2. Increased Visibility: You can improve visibility across the supply chain by managing your inventory. Know when your items are picked, packed, and shipped by the supplier. Your customers can get the same visibility when you ship out their items.
  3. Shorter Lead Times: With better management, you will have the right quantity on hand at the right time in the right location. As a result, your lead times (start to finish of your production process) can reduce by 50%.
  4. Lower Costs: Inventory costs can be a big portion of your inventory value. In some cases, inventory holding cost can alone be 25% of that amount. An IMS tells you exactly how much you need and when, which further reduces your expenses.
  5. Improved Delivery Performance: Real-time information can improve the flow of goods to your customers. Delivering orders on-time increases their satisfaction – meaning repeat purchases.
  6. Employee Efficiency: A robust IMS will improve your employees’ efficiency in managing inventory. Automating tasks will further save their time which they can use to focus on other aspects of the business.
  7. Accurate Planning: With extensive insights into your inventory, it’s easy to identify patterns and trends. This allows you to forecast your sales and make accurate decisions regarding your inventory.
  8. Decreased Stock-outs: Features like automatic replenishment in an IMS can determine how much stock you need and create purchase orders for them. Businesses report a 10-25% decrease in stock out when they manage their inventory actively.
  9. Increased Customer Loyalty: By improving your accuracy and efficiency, your customers will trust you to fulfill their needs. Gain their loyalty and increase your goodwill.
  10. Increased Inventory Turnover: Optimize your inventory turnover by keeping more of profitable goods and less of slow moving products on hand.

In conclusion, any business, regardless of the size, can reap the benefits of Inventory Management. It will ultimately boost the bottom line and set your company on the path for growth and expansion.

Stay tuned for the next post where we talk about the consequences of not managing your inventory!

Interested to learn more about Benefits of Inventory Management? Click here to see how Clear Spider can help.


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