No matter what kind of products you are selling, your business will need to have an inventory so that you can efficiently manage all of your stock. This may seem like only a very small part of running a company, but if you get your inventory management wrong, you might end up running your business into the ground. Sure, we’re all capable of making mistakes – it’s just any mistakes with your inventory could cost you some serious profits.
Want to make sure you and your company are able to steer clear of significant mistakes that could cost you dearly? Here are the most common inventory mistakes that you need to be aware of.
Not Automating Things
Just a few years ago, everything to do with the reporting and management of your inventory would have had to be carried out the good old fashioned way – with pen and paper. That is, thankfully, a thing of the past now, and everything to do with your stock and inventory can now be automated.
It’s a good idea that you try and embrace as much automation as possible, as it will really make your life a lot easier and reduce the chance of human error costing you valuable money. So, you should look into investing in inflowinventory.com/ or another great inventory computer program.
[pdf-embedder url=”https://financialbin.com/wp-content/uploads/2017/12/WSI-Balanced-Inventory-Management-System.pdf” title=”WSI Balanced Inventory Management System”]
“Infographic created by WSI”
Holding Onto Equipment For Too Long
Did you know that your stock and equipment will depreciate in value if you hold onto it for far too long? It’s true, and this is one of the main reasons why businesses end up losing money without even realizing it.
If you think that this has happened in your business, there are ways to get your money back. You might want to get in touch with equifyllc.com/ as they will be able to help you sell your equipment. They hold regular auctions where you should be able to make most of your money back.
Not Reporting On A Daily Business
How often do you carry out reports on your inventory and stock? If you haven’t answered that question with “every day” then you are doing something wrong! Carrying out a daily report allows you to have a current snapshot of exactly what stock you have in your factory or warehouse.
Not only that, but a daily report can show you the patterns that occur in selling. You can see which items are in demand and which are slower to sell. As a result, you will be able to make some important forecasts and will also be able to keep on top of ordering more items to ensure your inventory is always in full stock.
That’s it – just three mistakes that many businesses fall foul to. Even though these mistakes don’t seem all that big on the face of it, they can end up being catastrophic to your company and could see you lose a large chunk of your profits.
Make sure that doesn’t happen to you by always staying on top of your stock and inventory!