You work hard to make sure your products are high-quality and meet your customers’ expectations. An important part of the sales process is getting the products from your warehouse shelves to people’s front doors. If you are using a sub-par or outdated inventory management system, you could be in for more hiccups and headaches than you’d like. Here are 5 reasons to use a quality inventory management system (IMS):
Customers See Only What’s in Stock
Have you ever ordered something online, only to get the dreaded email a few days later that the item is out of stock and the store can’t fulfill your request? Though sometimes stock shortages are unavoidable, especially if an item sees a sudden spike in demand, a better inventory management system can alleviate the problem. A modern, powerful IMS keeps track of how many of an individual item is in stock, automatically deducting from the total every time a purchase is made. Your customer also sees this number when viewing your website, and will be prevented from ordering an out-of-stock item. Having a modern IMS will mean less hassle for your customers, which likely will lead to repeat orders.
Decrease Returns
The best inventory management systems store a wealth of information, including where in the warehouse items are shelved. This helps keep your stock organized and makes sure things get shipped correctly. And when the correct items are shipped to the correct customers, the amount of returned items decreases. If you rely on a less sophisticated IMS, it is much easier for items to be incorrectly shelved in the warehouse, leading to incorrect shipping, increased returns, and dissatisfied customers.
Assists with Speedy Shipping
If the warehouse location of each product is stored accurately in the IMS, things are much easier to find when an order is placed. This means your warehouse team – or your third-party logistics company – can quickly process, pack, and ship products to your customers. Improved order processing allows your products to reach your customers faster, boosting their satisfaction and improving your reputation as a business.
Saves You Money
Improperly managed inventory can lead to a whole host of pricey problems – broken or damaged stock that must be replaced, overstocking, frequent returns, and need for more warehousing space, to name a few. With a robust IMS, you can stay on top of how much of each product you have in your warehouse, buying only what you need to keep business rolling. And the more money you save on stocking and warehousing costs, the more money you have to re-invest and grow your business.
Better Business Forecasting
Consistently having an idea of how much product you have in stock and being able to see spikes and dips in ordering allows you to more accurately predict how much product you will need at a given time. If your IMS data shows that you sell a lot of Product A in June and July, for example, you can begin to stock up in May but taper off ordering once August hits. You also will be able to more effectively predict hiring needs, adjust product pricing, and expand into new product lines into the future.
Affordable Inventory Management Solutions for All Business Sizes
At Cannon Hill Logistics, we utilize the latest in inventory management systems, allowing us to properly support our clients’ businesses and growth goals. We take pride in designing customized solutions for businesses of all sizes. Contact us today to see how our conveniently located East Coast warehouse can build your business.