Five Ways Your Business Could Benefit From an Inventory Management Company
Inventory management is the process of controlling and supervising inventory within a company. It includes but is not limited to optimizing storage, managing the number of items for sale, balancing the inflow and outflow of stock, and fulfilling orders. Ideally, an outsourced company of this nature would provide replenishment services, software to plan for and predict increased or decreased demand, and real-time stock tracking. The benefits of this process vary based on business types and sizes. However, the efficient use and distribution of goods is a crucial attribute for any successful or aspiring business. Below are five ways YOUR business could benefit from outsourcing an inventory management company.
Reduce Waste Costs
Inventory management companies are specially trained to predict and prepare for peaks and troughs in product sales. Most small businesses change stock depending on seasons and holidays. Without proper forecasting, they are at risk of ordering excess stock that is no longer demanded and is likely to expire (depending on the product type). By outsourcing the process of taking inventory, rather than using amateur software and unreliable prediction methods, seasonal product losses can be drastically decreased, and waste costs, therefore, reduced significantly.
Reduce Storage Costs
When it comes to managing businesses, an incredibly large portion of the budget often goes to warehouse rentals and other storage methods. Nevertheless, most entrepreneurs mark the task of storage optimization as mundane and unnecessary, with little thought to the money being lost on surplus space. Inventory management companies are adept at organization and can help utilize limited amounts of space. Smaller warehouse rentals generally come at a lower price, resulting in reduced storage costs.
When customers encounter unavailable products while shopping online, they are unlikely to wait a month or even a week to satisfy their needs. Instead, most customers will immediately turn to similar businesses, even competitor businesses, with the same product in stock. Inventory management companies can use techniques such as stock alerts, projections, and automatic reordering systems to ensure that all items are always available.
When it comes to managing stock, a frequent issue is predicting and staying aware of oversold and undersold items. Inventory management companies can use advanced software to forecast product demand based on company reports and track stock across multiple locations in real-time. This software can also simplify and accelerate the reordering process, thus optimizing employee time and ultimately increasing efficiency and productivity throughout the business.
Customers always come first, and inventory management companies can ensure that the customers are satisfied and happy. As business productivity increases, order fulfillment can be expedited, as employees have more time to focus on packaging and routing. The management software also allows for quicker and smoother communication between staff members and executives, reducing the risk of product delay or damage.
United Defense Logistics Solutions is a veteran owned inventory management company that offers services globally.