This is a must read if you’re a business owner, new to inventory management or your business partners want to better manage their stock levels.
In this guide we cover:
We live in a brave new world for business. Selling across multiple channels, particularly through eCommerce platforms and online marketplaces, allows companies to quickly reach many customers. The customers like the products, the cash starts coming in, and everything looks good. At least on paper.
The fact is that many businesses only think they’re doing well. But they really have no control over their cash flow, and they have no idea if they are turning a profit (or how to improve their profit), if they do not manage their inventory well.
Inventory management includes the processes and tools used to determine the value of your products and to control the amount of products you make available wherever you sell them. The fundamental problem of inventory management is finding the right number of products to store and sell through every channel, ultimately to increase your profitability.
So what’s the big deal? Well, holding too much stock of a slow-moving product will cost you money in storage costa or markdowns for products that become obsolete. And holding too little stock of a fast-moving product will lose you sales, and perhaps even customers for life as they move on to shop with one of your competitors.
Ultimately, good inventory management solution and processes will let you manage the cost of goods sold, from the time you buy purchase from your suppliers to the moment your product reaches your customers’ hands. This means knowing your margins and having accurate landed costs. The way you manage inventory should improve your balance sheet, give you insight to forecast and prepare inventory for the future, and give you the power to make more money with less stock no matter where, when, or how you sell your products.