Industries that depend heavily on product sales for revenue generation need to adapt to changing consumer demands. Your company could be in one of these categories. Having real-time visibility and automating your inventory management processes can help you save time and money.
Today, many companies rely heavily upon Excel to track inventory. This can lead to bottlenecks that increase inventory volume and cash tie-ups, which will result in a decrease in cash flow. While manual processes are feasible in the early stages of a company's existence, they can become difficult to manage as sales and demand increase.
This blog will discuss seven indicators that can indicate it is time to consider other options. These indicators can help you to prepare for taking action if you are experiencing problems with your company's current processes. It will also help you to support sales growth.
1. Stock shortages:
Inability to see inventory in real-time will make it difficult to gauge demand accurately. Businesses that allow products to remain inaccessible for too long will lose customers
2. Too much inventory:
While selling inventory can lead to revenue, there are also costs that must be incurred to make space and use resources to keep the ship afloat. Insufficient understanding of customer needs can lead to excess inventory, which can be detrimental for your business.
3. Manual tracking of inventory:
It can be costly for your company to keep track of inventory using Excel or paperwork. It can be very difficult to track stock if you have a lot, especially if it is spread across multiple warehouses.
4. Production Planning is not a constant process:
Poor production planning can lead to manufacturing delays. This could be either in-house or externally. In either case, poor production planning can lead to insufficient forecasting and delayed sales. This creates a bottleneck in the supply chain.
5. Incapable of adapting to changing demands:
Your business's climate is constantly changing. Every season might not have the same demand. An outdated inventory management system can hinder your ability to adapt to changing climates, no matter how successful you are in one quarter. A solid inventory management system will allow you to be flexible at all times, and it will ensure that you always hit the sweet spots of seasonal/changing demand.
6. The current system prevents new product launches:
You will need to scale your business through new product launches or increased demand for existing products. This will require you to make some changes within your organization to ensure your success. Visionaries often want to innovate their businesses, but they sometimes find it difficult to do so due to a lack of time or resources. An efficient inventory management system can make it easier to launch new products and makes it more scalable.
7. Deadstock can cost you $$$:
Inventory that is due to expire within a certain time period will not only cost you space but also cause liquidity problems as it cannot be salvaged. Stock that is fragile or perishable must be kept well-organized and tracked efficiently to avoid becoming a dead stock.
These signs may resonate with you and your company is looking to improve inventory management operations. Contact us today to discuss ERP options. We're here to help!