For small and medium sized businesses, a competitive edge only comes about due to the difference in the way they operate that ultimately leads to profitability. Small and medium sized businesses either have to come out with extraordinary products and services, or try to do things faster, more efficient, or more cost effective. Having better inventory management systems is incredibly profitable for small and medium businesses and here are the reasons why:
Excellent Customer Service
When Inventory procurement, management and the flow is automated or semi-automated, business processes become tremendously efficient.
With the primary focus off the inventory and supply chain management, small businesses can now focus on customer service and how to keep these customers coming back again and again. By focusing all efforts on better customer service, your small business can truly afford to offer customized products, services and support throughout.
Efficient Sales Forecasting
For every business plan to be justified, a sales forecast is perhaps a focal point to take note of. Proper sales forecasting leads to fundamentally strong foundations upon which a business can function. Sales forecasting allows businesses to plan production volumes, account for economic uncertainties and help maintain the cash flow for business – which, as you well know, is at the very core of any successful business ventures.
Faster TAT (Turn around Time) and Better Manufacturing Processes
The faster you produce products by spending as less as possible, the more profitable you will be. Toyota Motor Company stands out as one of the few profitable motor vehicle manufacturing companies in the world against a graying backdrop of tumbling automobile manufacturers the world over.
The reason Toyota could do that is because it adopted leaner manufacturing processes and faster TAT. At the very heart of LMS (Lean Management Systems), JIT (Just in Time Systems), etc., are inventory management systems.
Huge amount of losses occur in companies and millions of dollars are written off against unforeseen misplacement of inventory due to anomalies in shipments, lack of efficient tracking mechanisms, no proper stock management and storage systems, etc.
Warehouse Tracking, forming a core module of Inventory management, helps you take stock of your inventory, track and control it, incorporate logistics into its management database, and much more. It leads to minimizing losses due to inventory handling and stock being misplaced.