Do you operate a brick and mortar shop? Are online sales more your speed? Regardless, keeping track of your orders and inventory is crucial to the success of your business. Poor inventory management can lead to lost sales, unhappy customers and unnecessary expenses. However, by implementing an effective inventory tracking system, your company can improve efficiency, reduce waste and enhance customer satisfaction.
It prevents stockouts and overstocking.
Running out of popular products is a good news/bad news situation. On one hand, it is great that your business is profitable. But, on the other hand, running out of stock too quickly can lead to lost sales. You can’t order too much stock all at once either. Overstocking ties up cash in unsold inventory. This is why it’s wise to use an inventory management system to track stock levels in real time. Automated alerts can notify you when it’s time to reorder. It will prevent shortages and excess stock.
According to Linnworks, calculating ideal stock levels is a key part of avoiding stockouts. They suggest using the ABC analysis. It’s a method of classifying inventory based on its importance: “Class A items are the most important, and make up most of your inventory. Class B items are important, but make up a smaller portion of your inventory. Class C items are the least important, and make up a small portion of your inventory.”
It improves order accuracy.
Customers expect to receive exactly what they ordered. Errors in order fulfillment can lead to returns, refunds and negative reviews. When you use a digital tracking system, however, you can reduce human error. It ensures that orders are packed and shipped correctly. Barcode scanning and automated order processing help improve accuracy. Bear in mind that late or incorrect orders frustrate customers and can damage your business reputation.
“When customers consistently receive exactly what they ordered on time, they’re more likely to return for future purchases and recommend the company to others,” notes Abby Jenkins of NetSuite, “Conversely, inaccurate orders can damage customer relationships and prompt disparaging reviews and negative word of mouth that deter new customers.”
It reduces theft and loss.
When you properly track orders, you reduce inventory shrinkage due to theft, misplacement or administrative errors. They can be costly. Regular tracking helps identify discrepancies before they become major issues. Make it a point to conduct regular inventory audits. You should also use security measures such as POS-integrated tracking and surveillance to minimize losses.
Digital Main Street also highlights the importance of identifying low-turn stock to reduce loss. “If you have stock that hasn’t sold at all in the last six to 12 months, it’s probably time to stop stocking that item,” says their website, “You might also consider different strategies for getting rid of that stock — like a special discount or promotion — since excess stock wastes both your space and capital.”
Take advantage of the Poynt C Smart Terminal!
The Poynt C Smart Terminal offers an exceptional payment experience for your customers. This all-in-one cloud-based terminal can help you to keep track of all your orders and inventory. It can also allow you to access dozens of reports about your business and its customers – all in one place! To learn more, please don’t hesitate to call us at 1-800-661-3761 or email info@unitypayments.ca.
