If customer orders and production were always consistent, we wouldn’t need inventory monitoring procedures to remain profitable. But seldom do things remain the same at times when the economy is unstable and supply chains face ongoing challenges.
Your best defense is preparation. And to be better prepared you need SOS Inventory, a comprehensive inventory monitoring system that will reduce your costs, speed up workflows and help your staff mitigate problems as they arise.
Doing a better job of monitoring inventory means acquainting yourself with your top sellers and knowing what to keep in inventory to satisfy those orders. Keeping customers happy will build loyalty and selling to the same customers costs far less than retaining new ones.
It also means you identify waste and work to reduce it.
Inventory monitoring in Excel spreadsheets will only get you so far. Trying to grow your business while avoiding data discrepancies is a major challenge until you move to inventory monitoring software.
Monitoring your inventory gives you greater inventory control. Greater control allows for cost control and higher profitability. And SOS Inventory gives you the transparency for better record keeping and decision making. Knowing where your cash goes and whether or not you’re optimized to make it work for you is an important piece of the decision-making process.
Why do you need an inventory monitoring system?
Do you know how much inventory you have at every location and at every stage? Do you know the value of inventory in all its various stages? If not, you should, and it’s much easier to answer any inventory related question when you process all the information with a single software platform. And when everyone in your business can access that same information to make important decisions, you stand a much better chance of creating desirable outcomes.
There are plenty of disadvantages to not monitoring inventory, one of which is loss of profits. If you don’t know how much inventory you have, you don’t know how much to order. And if you don’t know how much you’ll need to meet upcoming sales, you won’t know how much you’ll need to have on hand.
From the time you submit a purchase order to a supplier through delivery of an order to the customer, all the product workflows influence one another. If you don’t base your order quantities and frequency on the average lead time or retain safety stock in the event of delivery delays, you could potentially bring production to a standstill and end up with a shortage of finished product to fulfill orders.
When you do encounter a workflow disruption, everyone involved in handling products that flow from that disruption need to know so they can react accordingly. By managing inventory in SOS Inventory software your employees can stay on top of inventory counts, costs, labor, orders, and more from every vantage point.
Having too much inventory on hand is equally problematic. Product may not sell, may be subject to spoilage or obsolescence, all while taking up space and increasing storage costs. Inventory eats up most of your money and too much inventory can eat into your pockets. By determining minimum order quantities, you can set reorder points to order just the right amount of product at the precise interval to keep production flow consistent.
Inventory monitoring from the production floor, finance department, sales, or fulfillment can be easier, save labor costs and keep everything running smoothly. SOS Inventory was designed to help businesses like yours properly track every item and its associated costs to make growth and profitability more attainable.