Effectively managing a business that sells goods, whether online or off, requires meticulous attention to detail and organization. If you struggle to get your inventory under control, you’ll have more than just a messy warehouse on your hands. A lack of organization can lead to substantial financial losses for organizations. For instance, Walmart suffered a loss of three million dollars in 2013 due to inadequate inventory management and wasteful restocking practices. This unfortunate incident serves as a valuable lesson, highlighting the crucial role of inventory management in maximizing the profitability of any business.
Poor Inventory Management: More than a Mess
Poor inventory management can cause a number of frustrations for business owners, from extra spending to low efficiency to dissatisfied customers. Here are a few of the biggest concerns surrounding poor inventory management.
Without a proper system in place to track inventory inflow and outflow, overspending is inevitable. Overstocking and excess inventory are among the primary reasons commerce organizations see their costs skyrocket. Overstocking an item leads to unnecessary restocking expenses, while excess inventory results in unnecessary (and expensive) waste disposal. The environmental impacts of so much waste should also be considered in these costs. From extra storage to transportation to handling fees, these extra costs severely reduce profit margins.
Effective inventory management is crucial not only for financial profitability but also for customer satisfaction. Stockouts are another consequence of not having your inventory under control, a frustrating experience for customers. In this world of overnight shipping, immediacy is key when customers are deciding which vendor to purchase from. Why wait a few weeks for inventory to be restocked when a site like Amazon may have a comparable item that can be delivered the next day? You need to know what is currently in your inventory and predict customer needs ahead of time so “Out of Stock” messages don’t turn your customers away. By ensuring that your inventory is organized and in stock, you are providing top-quality customer service that is likely to be remembered
Over 40% of businesses don’t track inventory or use manual processes to do so. However, the time spent searching for misplaced inventory, reconciling discrepancies, and updating inventory records can result in significant productivity losses when it comes to core business functions, like sales and customer service. But automated inventory management doesn’t always equal more efficiency. Using the wrong type of inventory management technology can also lead to efficiency losses. Does your technology accurately capture barcodes? Is your team properly trained in the technology to begin with, or do they use it half-heartedly?
Zoho Inventory is one of the best cloud-based inventory management platforms regardless of your size or industry. With Zoho Inventory, you can track shipments and payments, and manage your vendors from the same platform, making this platform a one-stop shop for inventory management. Excess costs? Lost efficiency? You’ll have no problem getting your inventory under control with Zoho.
- Streamlined inventory management: With Zoho Inventory, you can manage your entire inventory from a single platform. You can track your stock levels, create purchase orders, manage vendors, and track shipments, all from the same place. This streamlined approach saves time and reduces the risk of errors.
- Multi-channel sales management: Zoho Inventory integrates with popular marketplaces such as Amazon, eBay, and Etsy, allowing you to manage all your sales channels in one place. You can track orders, manage shipping, and update stock levels across all channels automatically.
- Advanced reporting and analytics: Zoho Inventory provides powerful reporting and analytics tools that allow you to track key performance metrics such as inventory turnover and sales velocity. This data can help you make informed decisions about your inventory management strategies.
- Mobile access: Zoho Inventory has a mobile app that allows you to manage your inventory from anywhere. You can view stock levels, create purchase orders, and track shipments on the go.
- Compatibility: Zoho Inventory is integrated with over 25 of shipping services, including USPS, FedEx, DHL, and UPS, among others. This means that you can easily compare rates and select the best shipping option for your business.
- Real-time tracking: Zoho Inventory allows you to track your shipments in real time, so you can keep your customers informed about the status of their orders. You can also set up automated notifications to keep your customers informed about any delays or changes in shipping status.
Plus, Zoho can integrate with a variety of tools within the Zoho suite, such as Zoho CRM, which allows you to manage your customer relationships and track their orders from a single platform, and Zoho Books, which allows you to manage sales orders, purchase orders, and bills.
Get Your Inventory Under Control with KDG
If you find yourself struggling with inventory management, our Zoho Premium Partner team can help you get your inventory under control using Zoho Inventory. As a nationally recognized Zoho partner, our team can assist with setup, migration, development, reporting, and training. Our 100% US-based team has decades of combined experience working alongside e-commerce.
Contact our team to start simplifying your inventory with the power of Zoho.
Stephen Solt is a Senior Accountant at KDG. With his eye for detail, his ability to problem solve, and his dedication to customer service, he’s helped numerous businesses see their financial futures clearly.