Inventory management is often placed lower on the priority list when running a retail business. Right now, you're primarily focused on product design, marketing strategies, running your sales channels, managing finances and the list goes on.
“I’ll just continue punching inventory in Excel spreadsheets, because it works well enough. Plus, I don’t have time to research better options right now.”
A proper inventory management solution affects more than you may think. And if you implement the right one, you’ll not only get time back that you can dedicate to those more desirable tasks, but you’ll also increase sales and decrease overall stress.
Here are four reasons why establishing a smart inventory management solution is crucial to the growth of your business (and your sanity):
1. Inventory automation is key to increasing sales.
No matter if you sell online or offline, through one channel or many, inventory control dictates your sales performance. When inventory is traveling in and out of your warehouse, the more knowledgeable you are about where it’s going, the more effective your sales efforts will be. Implementing an inventory management platform enables you to automatically pull sales order data from various channels and keep you up-to-date on your best sellers. You’ll be able to track that sales data so you can respond to product demand faster. All of this will occur with little to no work on your end.
In order to increase sales and grow your business, access to this type of data is key. It’s also just as important to your loyal customers...
2. Customer retention hinges on accurate stock quantities.
People don’t like surprises. Well, at least not the kind where you run out of an item they want. When a customer goes out of their way to complete a transaction online, the last thing they want to hear is that the item they purchased is unavailable. This is not the kind of surprise that you want to experience as a business owner either.
Having a strong handle on inventory quantities in real-time is crucial in avoiding situations like this. Improve customer retention by implementing an inventory management system that gives your team quick access to stock quantities and order tracking. You can act much faster to avoid situations that may lead to negative reviews.
3. Internal communications must be centralized.
As your team grows, it takes a lot of energy to get new employees up to speed. Hours spent on training can drag on and, let’s be honest, you have barely enough time to shower, let alone time to develop a proper employee training process. Simple cloud-based inventory management software allows for you to easily train your team members on how your operations work. You’ll all be working from a centralized system that eliminates confusion and encourages employee engagement.
Imagine if your team could log into a computer to view, in real-time, what’s being picked, packed, paid and shipped. Stop the endless email threads and constant questioning. Your team all exists on the same (inventory) page now.
4. Product marketing needs proper data to support it.
Marketing and inventory management. Not the most conventional duo, but when done correctly, they make quite the harmonious pair. When you can easily analyze your best selling inventory, you can then begin to test various product marketing tactics to improve sales. If you see that Product A is your best seller among a particular group of people, perhaps you can then curate content and design that better connects that group. Or maybe you realize Product B is buried on your website, which is why it’s never purchased. This kind of reporting helps you confidently justify every marketing decision you make.
Inventory is becoming more of a central focus to smart businesses who want to scale. If you’re ready to do the same, check out Stitch Labs' inventory management platform free for 14 days.