An out-of-stock situation is an embarrassment to brands – a common business mistake that many companies choose to ignore. However, what they do not realize is that by not focussing on this aspect – which according to them is a minor operational issue – they risk losing out on their loyal customers, as well as potential buyers to their competition.
On the other hand, companies cannot risk and invest in maintaining more than the required inventory at all times, because it is their money that is at risk here. So, what is the balanced way out so that the inventory level is neither an embarrassment nor cause a dent into the operational costs? It is the use of a relevant inventory tracking system that helps manage the stocks appropriately.
Such a system offers
· Generates reports that help the management to keep costs under control and make judicious decisions regarding their product line and stocks.
· The right inventory software helps businesses in forecasting for the future based on trend analysis of the past. The data is generated by the software system – hence, the accuracy of such a system needs to be thoroughly verified before incorporating one into the business workflow.
When selecting the right advisors from multiple supply chain consulting firms, businesses need to seek as much information as possible to ascertain the credibility of the firm.