What is Inventory management? - Inventory is the accumulation of products stocked to be used in the future. Catering to the market needs and uncertainties, every retailer stores a particular amount of stock. A warehouse is used for stocking the merchandise to be used after the replenishment of the existing stock. A track for the stocked goods is kept for making sure the availability of the surplus inventory so that the situation of being out of stock does not arise. The process of maintaining such records is termed as inventory management.
Why Inventory management?
In the contemporary times, instant gratification is what a customer is looking for. If the customer does not get the required merchandise in one store, he/she is most likely to rely on other stores offering the same product or service. Therefore, the retailer can’t afford empty shelves and unavailability of the merchandise. Thus, maintaining stock becomes necessary for running the business well. Retaining the existing customer along with attracting new customers are both important for the retailer.
There are instances where the said product one is dealing with may consume tie to reach the warehouse or store. Therefore, during this lead time, it’s necessary for the retailer to possess sufficient stock to be offered to the customer. Holding sufficient stock is also important for the retailer due to unforeseen situations like low supplies, curfews, strikes etc. Here is when the need of inventory management arises.
Do smarter inventory management with CAC
How inventory management saves your money? - Inventory management is extremely beneficial for saving your money in the following ways-
Avoids Spoilage - If you have a product for selling that has an expiry date, the product will get ruined if not sold on time. This unnecessary spoilage gets avoided with proper inventory management.
Avoids dead stock - Dead stock is referred to the stock that cannot be sold. It is not necessary that the stock would have expired. It could have been out of style, out of season or would have otherwise become irrelevant. Your dead stock gets avoided through proper management of the inventory.
Saves the storage cost- When the products stored by you are in excess or the products stored by you are difficult to sell, your storage cost would increase. If such a situation gets avoided, you end up saving money.
How inventory management improves your cash flow?
Factoring inventory into your cash flow management is important. It impacts your expenses as well as your sales. Both these play a vital role in deciding the amount of cash you have in hand. Better inventory management helps in better cash flow management.
An excellent inventory management system would help you in knowing the exact amount of product you possess and on the basis of the projection of your sale you’ll know when you’ll be out of stock and when you’ll need the additional stock. It’ll not only ensure you’re not losing a customer but also planning ahead for buying more.
Customized Inventory Management
Inventory management is enormously customizable. The inventory management system is different for each company. We, at CAC, help companies strategize a perfect and suitable system for you.
Boosting inventory planning can make the retailers lower inventory cost by 30 %. Now is the time for you to partner with us for taking control of your inventory management to be able to stop losing money. We opt for the most appropriate inventory management techniques for your business and implement the same most appropriately.