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Inventory Management

Infographics Series: Why You Should Manage Your Inventory

January 23, 2018


Previously, we talked about the inventory management options available to you. For this post, we’ll be discussing why you should manage your inventory  and why you should do it now.

Consequences

It’s easy to do nothing, but doing nothing comes at a cost.

  1. Wrong Inventory
    Without inventory management, you can end up with the wrong product. You might not have enough of what you need or too much of what you don’t need. Your stock and inventory levels may not be accurate. How will you know when to reorder?
  2. Wasted Time
    Also, you’ll waste time manually doing what a system could do for you. Why waste time counting and re-planning if you don’t have to? A system can handle many smaller tasks that employees otherwise would. For example, you could save time creating reports and labels.
  3. More Work
    All the effort you spend managing serial numbers, shelf life, etc. could be better spent elsewhere. With inventory management, you’ll have more effort for value-adding activities.

Solutions

What solutions does inventory management offer?

  1. Minimize Spending
    Firstly, you can minimize spending. Inventory management allows you to ensure you have the right amount of the right product. This can reduce insurance and warehouse costs, carrying charges, etc. These carrying costs typically make up 20-30% of the inventory cost.
  2. Improve Service
    Also, having the right product will improve your service. Happy customers are simply better for business. If you have the right product at the right time, this will make you more reliable to customers.
  3. Save Time
    These solutions will also save you time.  All parties will have access to important info and can track the ins and outs. You don’t have to manually transfer info, as they can log on and see for themselves.
  4. Understand metrics
    Furthermore, these solutions will help you understand metrics. You can use metrics to measure your performance and make better decisions.
  5. Collaboration
    Lastly, managing your inventory helps you collaborate. Your customers and clients will have quick, self-served access to the info they need. This also increases transparency and trust.

So, why should you manage your inventory? You can save costs and time, improve service, use metrics, and improve collaboration. But why should you get started now? Although it’s easy to keep doing what you’re doing, this comes at a cost. Having the wrong inventory, spending excess time, and doing excess work are all avoidable.

 

If you’d like to learn more about what Clear Spider’s inventory management system can do for you, click here.


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