It’s a classic new business story – your business carries inventory and you’ve employed Excel and the eye test to track inventory.
Then, one day, the house of cards comes tumbling down.
This is the critical event that opens your eyes to the need for an inventory system. Don’t fall victim to this vicious cycle, here are 3 reasons you should get an inventory system before you break your current processes.
Traditionally there are two types of inventory tracking options, periodic or perpetual. In today’s environment, the reality is that perpetual tracking is the only option to grow your business efficiently. Using an inventory system will provide you with real-time data as events occur. This empowers you to make strategic decisions on the fly with the confidence of accurate data.
Reduce Human Error
One if the biggest challenges of maintaining inventory is handling human error. Human error can include mispicks, lost inventory, damaged inventory, incorrect data entry, or theft. With an inventory system many of the data capture points can be automated with barcodes, eliminating the need for human entry. Inventory movements are tracked, allowing loss to be isolated to a person or process enabling accountability among employees. Combined, the benefits of reduced human error will allow the business to run leaner and more efficiently.
The ROI on a well-implemented and effective inventory system justifies the cost outlay many times over. The benefits run the gamut from reduced inventory costs, decreased inventory shrink, and decreased fulfillment times. All things considered, the cost savings generated by an inventory system quickly pay for any additional costs.
If your business has inventory, a system to track that inventory is critical to operations. Additionally, as the business grows one of the first hires will likely be someone whose sole responsibility is inventory operations. A business with good control over inventory is a business poised to scale quickly.