When you’re a brand trying to make waves at retail, there are a million moving parts to keep track of. Supply chains have become increasingly complex, and they now span multiple channels that need to be fully integrated to maintain accurate inventories. If, however, you’re concerned about inventory management issues, this can cause not only a great deal of stress, but the issues themselves can cause a drop in your bottom line.
And you’re not alone.
According to Capterra, the average inventory on hand for businesses of all sizes in North America has risen 8.3% in the past 5 years, despite the fact that manufacturing and shipping are faster than ever. Consequently, businesses keep $1.43 of inventory on hand for every $1 of sales, which means a lot of capital is tied up in inventories.
Phantom inventory is a big concern for manufacturers. If the inventory states that there is a lot of inventory on hand but the store doesn’t actually have product in the store, this will stop sales. Alternatively, if the inventory states that there is no product on hand but there is a surplus at the store, product could be getting ordered for no reason.
Additionally, as we’ve mentioned before, a study done by IHL Group has found that retailers around the world lost well over half a trillion dollars in the past year due to out-of-stock inventory. Thus, inventory management issues are causing business big and small a fair number of headaches.
So, what can you do to get a better handle on these issues?
First you need to identify the problem. Unfortunately, far too many businesses are still relying on spreadsheets or even pen and paper (or no inventory control system whatsoever) to track the stock on shelves both on the floor and in the backroom – not to mention the ‘untrackables’ leaving the store without your knowledge. This is problematic when it comes to identifying trouble in a timely fashion.
A retail audit is a great way to do so, no matter your inventory tracking system. A company that offers retail audits can come in, go over your numbers and determine what the root cause is. Then you can take the necessary steps to fix the problem.
What if you don’t have the resources to accomplish this? Perhaps that same company can take care of this problem too. With the right people support, making sure that shelves are well-stocked, that total inventory numbers are correct, and that no deficiencies exist become far easier tasks. Furthermore, the right company will be able to help you best determine a strategy to remain on top of those numbers to help ensure problems can be identified and dealt with sooner.
At Storesupport, we understand how tiresome it can be to deal with inventory management issues – but at the same time they can’t be ignored. We can help. Get in touch today by calling 1 877 421 5081.