When you are running a business, you need to be quick to respond. Due to high competition, slacking behind will cost you cost and even lose valuable customers. If you don’t have a good plan, you’re likely to waste money and time, make mistakes, and end up with unhappy customers. That is why effective inventory management can play a big role in getting more people to buy your product.
A proper inventory management method will help you to better manage your inventories. This will help you to meet customer demand more efficiently and reduce lead time.
What is the lead time in inventory management?
When an order is placed, there is a long process till the customer receives the finished products. Customers care about the delivery time before the quality of the goods. From a business standpoint, this represents the lead time. To put it simply, Lead time is the time between the beginning and end of an order process. In retail and wholesale business, it refers to the time between a customer placing an order and the product’s final delivery.
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Poor inventory management can increase the lead time and result in bad supply chain management which disrupts the whole process of the business. That is why businesses must give more importance to inventory management.
Ways to improve inventory management | Problems and Solutions
Big companies often have their unique inventory management techniques to stay competitive in the market. But due to the lack of resources, small businesses cannot afford to invest in such methods. That is why here are some common problems and a few tips which will help your inventory management process regardless of its size.
Suppose you cannot locate or identify stocks in your inventory. In that case, it becomes extremely difficult to maintain the supply chains and ship products on time, which can harm your company’s reputation.
The company will not be able to fulfill orders and there is a high possibility that they will waste raw materials. As a matter of fact, the most common cause of late, incorrect, or incomplete shipments is the inability to locate or identify inventory in the warehouse.
This issue can easily be solved when you implement an inventory management software like CloudApper Assets, you will have accurate location data and stock availability information. This will facilitate the easy location of stocks, resulting in improved order fulfillment and customer satisfaction.
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Lack of inventory control
Businesses should have complete control over their inventory in order to keep accurate inventory accounts. Most companies who were suffering from bad supply chain management discovered that lack of inventory control was one of the prime reasons for it. With accurate records, this issue can be solved. It will help companies to monitor the status of their current assets and take appropriate actions.
Ineffective inventory management software
Among all the types of inventory management systems, not all are the right ones for every business. Each business has unique requirements and to fulfill them you need to choose a system that perfectly fits in the gaps. There are many software in the market that recognize this problem and developed systems that can be customized as per the business requirements.
Improve inventory management with CloudApper Assets
For inconsistent tracking of inventory, companies fail to manage stock levels, safety stock and fulfill orders. CloudApper assets software is designed considering the issues business face with their finished goods. The issues of inventory management in the supply chain have caused companies to lose brand value.
It has been seen that many companies moved to an enterprise resource planning ERP system and abandoned it due to complexity. Furthermore, companies have even adopted to EAM system to optimize excess inventory and failed as the system did not comply with the production process.
To avoid such or any other incidents try CloudApper and track your valuable asset in real-time. It is quick to set up and easy to use.