Inventory management is an important part of running a small business in North Carolina that can make or break your business. Making sure you have the right goods at the right time and in the right amounts is the foundation of a great business. You may find it hard to keep track of your goods efficiently as a small business. As long as you have the right tools, though, it can be a breeze. You can learn more by consulting accounting and tax services in Charlotte, NC.
Understanding inventory management.
Businesses need to keep track of their inventory to know what kinds of goods they need to buy and when they need to buy them. Businesses can use it to spot trends and change their stock levels to meet customer wants and plan for gaps. Inventory keeps cash on hand before it sells, which cuts costs and slows cash flow. Inventory movement shows how often a product is sold over time, and deadstock is when there is too much stock.
Inventory management is necessary to keep the supply chain running smoothly and avoid mistakes like picking the wrong things, not having enough, food going bad, and gaps. However, 43% of small businesses still do not keep track of their goods, and only 63% of retail companies in the U.S. can say for sure that their supply chain is accurate. This makes it look like a lot of shops are not using tools to keep track of their supplies.
Unlike an ERP system, an inventory management system only plans one part of the supply chain. It can connect to other software, such as point of sale (POS), sales channel management, and shipping, so the business can make its custom link stack.
The advantages of inventory management.
Inventory management’s two major benefits are that it helps you make more money and makes sure you can fill open or new orders. Managing your inventory also helps you:
- Spends less.
When you know about stock trends, you can see how much of something you have in stock and where it is located. This helps you make better use of the stock you have. This also means you do not have to keep as much stock in each place (store, warehouse) since you can pull from anywhere to fill orders. This cuts down on the costs of keeping stock and the amount of stock that goes unsold before it becomes useless.
- Helps with cash flow.
That way, you only spend money on things that sell, so cash is always going through the business.
- Makes customers happy.
Making sure customers get the things they want without having to wait is one way to keep them coming back.
For further help with this and more information, schedule a consultation with a financial professional today.
