Common Inventory Problems and Solutions

August, 2020

Inventory problems and solutions, is your system solving your stock problems, or causing you more headaches? Inventory can be the source of many headaches and problems. We discuss some common solutions that we hope will help you.

If up to this day you are still doing manual inventory management, you probably have encountered several issues and errors. Eventually, you will find yourself frustrated because you keep on experiencing the same challenges over and over. Then most probably you have started researching and asking yourself what you can do to address your problems, which might be the reason you are here because you want to know how to solve your inventory management problems.

Let us discuss what are the solutions you can take to resolve your problems which affects your productivity and prevents you from achieving your objectives.

1. Improving your Stock Visibility

It’s grocery day and you are running out of time to list down the items that you need to buy, you went to the kitchen and find that you have been keeping track of all the items you need to buy in your iPad the day prior, and now, you just have to sync that file in your phone. Easy! Now you’re off to the grocery store.

Most companies start of using manual systems ie paper-based, or excel spreadsheets. But as you grow and your business gets more complex, it is important to recognise this change. A big Inventory problem is not realising you have outgrown your current system.

Solving this problem involves finding the right software, that works best for your oganisation. Having an effective Inventory management software can put a stop to your major business problems. It can give you peace of mind by giving you complete visibility of all your products in the Inventory. When it comes to choosing the right software it is important to understand what features you need.

Together with that, you will have total control on your stock level, orders, and even product movement. Doing things manually is a thing of the past, having a cloud-based inventory management system can ease the repetitive process and human errors that you usually encounter when you were still using spreadsheets.

Transitioning your business to an inventory management system will allow you to integrate all your software and simplify your processes. You can get all the information like the location of your product in your warehouse at any given time, with the right inventory management system. It allows you to implement procedures for you to effectively control and manage your inventory with barcode technology and RFID so you can monitor products moving in and out of your warehouse.

Being equipped with the right solution for your business, all you must do now is always update your stock your inventory management system you are using to give you accurate inventory whenever and wherever you may be.

2. Maximizing Profits

Often without a good IMS it is hard to tell if you are making a profit or not. This is a very common inventory problem and has a relatively simple solution. Most Inventory management systems can very easily calculate your costs and also your revenue. Calculating your gross profit is very important to know if you are profitable and if you need to adjust your pricing, or negotiate better with suppliers.

Certain methods must be in place for you to be able to get the best out of your product, which you might be already implementing, such as the FIFO(First In, First Out), LIFO(Last in, First Out), and several more to help manage your storage cost. With choosing the inventory management system suitable for your business, you can optimize your workflow and processes.

A good inventory management system is one of the main drivers of your business, which is why having a good Warehouse Management Software (WMS) is one of the important features for you to have. There are several cloud-based inventory management system available in the market which can easily sync to the accounting software you are using. Equipping your team with the right tools can help you manage your inventory, make order fulfillments faster and reduce expenses to improve profitability.

3. System Automation

Keeping your customers satisfied with your service shows them how serious you are in conducting business with them. Conducting your business processes efficiently and fast gives you the opportunity to invest your time and effort to other parts of the business.

When you have multiple warehouses, keeping your inventory at the right levels may be challenging. An Inventory management system can simplify your ways of working. Integrating and streamlining your processes with the help of an inventory management system can easily sync to your company’s existing software such as CRM, ERP, Shipping solutions software to help your businesses to stay connected to customers, streamline processes for a more efficient way of doing business, and improve your profitability.

4. Demand Planning and Forecasting

Knowing the product you need at a certain period can be very challenging for a business. You need to have accurate data to tell you exactly what is the trend of your products and have better inventory control. That way, you can manage the size of your inventory and improve financial performance which puts you now in a position to allocate your resources and invest it to further grow the business.

This is exactly what a cloud-based inventory management system can do for you, by keeping analytics of all your products and know the performance of each product available in your inventory that can manage to carry cost and prevent having dead stock.

For instance, a boutique which sells clothes increases their stock level of products like thermal wear and jackets when it is winter then changes their stocks of a more comfortable and cool clothing line when it is summer because their analytics tells them that these products sell more during this period.

Always put your business in an advantage because times are changing fast and you have to adapt. For your business to keep up with the fast phase of doing business but still maintain efficiency and productivity, you have to choose what is best for you. You have to get the right Inventory Management system to partner with your business. If you want to know more what will work for you, book directly with us.

Are you ready to bring that perfect system in your head to life?