The Balancing Act of Inventory Management
Inventory management is basically a balancing act between achieving profitable service levels against the cost of holding inventory while walking through a hurricane. Supply chain professionals are burdened with global complexity, rising customer expectations, vast volumes of fast-changing data, and fierce competition from digital companies. This means small businesses have to work with precision to eliminate the inefficiencies with inventory management as the margin for error is exceptionally thin.
Why Is Inventory Management Significant?
Proper inventory management can make or break sales for your company. With the advent of Amazon and other online shopping sites, as a consumer, if the product they are in need of is listed as “out-of-stock,” on your website, the online shopper will immediately click to another source to obtain the needed item, thus, leading to a missed sales opportunity. And, if this happens too often, the bigger consequence is that it ruins the reputation of your company, and consumers will eventually become disenchanted and refrain from using your company for future sales. Not to mention, running out of products can lead to delays, while carrying the same operating costs. On the other hand, problems can also arise from storing too much inventory. Excess stock can increase carrying costs and products sitting on the shelf too long can potentially drop in value.
A Solution To Creating A Balanced Inventory System
Countifi offers a solution to obtaining a balanced inventory system by implementing imaging technology and data analytics. Our automated imaging and artificial intelligence can assist in the development of a well-optimized warehouse and make sure all your inventory is organized neatly and efficiently so that products and supplies can be easily located.
The ultimate goal of any supply chain is to get products to the customer in a cost-effective and timely manner. This is why Countifi’s accurate inventory system is critical to the success of a business.