Products are the core of any goods-based business, making the management of those products one of the most critical functions for success. How well a business can accurately forecast sales and efficiently move stock through their various sales channels is often a good indicator of the company’s overall health and its potential for growth. Yet, inventory management is still a constant struggle for retailers of all sizes, across all industries.
The Cost of Inventory Inefficiencies
It is vital but notoriously difficult to balance avoiding costly out-of-stocks while simultaneously not having unsold items taking up warehouse space and putting an added financial burden on your business. This is such a continuous challenge that REL has reported top public U.S. companies have $1.1 trillion in working capital tied up in inventory. That’s money no business can afford to be leaving on the table; money that can be invested in improving efficiencies, expanding product lines, opening new stores, and driving overall growth.
Aside from the hard dollars and cents that can easily get tied up in poor inventory management, disparate systems and siloed data have their own opportunity cost that is often harder to quantify. From accounting and purchasing to sales and shipping, there are a vast range of operational processes and transactions constantly taking place throughout your business at any given time. With most of these processes being tracked and data being housed in various systems, it can seem impossible to get the full, real-time picture of what’s happening in your company.
So how can you begin to tackle this complex and crucial business function that will only become increasingly challenging as you expand into new sales channels and rely on multiple warehouses or more advanced logistical processes?
Gaining Visibility and Control Through Centralization
To avoid the cost of out-of-stocks while improving efficiencies and operational visibility, you need a centralized inventory management solution that syncs all your retail systems. This system will increase inventory accuracy and unify your data for comprehensive tracking and superior business intelligence. You’re killing your productivity by managing, maintaining, and evaluating your inventory, sales, and operations in separate systems. Streamline your operations by connecting all your most important processes - purchasing, inventory management, payments, invoicing, accounting, reporting, shipping, and fulfillment - into a single hub.
The automation and integration an inventory management software, like Stitch Labs, can provide will enable your business to:
- Accurately track your inventory across all your sales channels
- Avoid out-of-stocks and overselling with low stock alerts
- Boost revenue by easing expansion into new channels
- Reduce costs with proximity-based order fulfillment from multiple warehouses
- Effectively forecast sales to help you make smarter purchasing decisions
- Anticipate when to invest more in a hot selling product
With this kind of comprehensive control and transparency over your retail operations, you can improve inventory efficiency and operational productivity while driving top-line growth for your business.
If you’re ready to start effectively managing your inventory and operations for increased visibility, reliability, and business intelligence, talk to an expert about Stitch’s centralized inventory solution.