Inventory visibility and tracking are essential for businesses because it allows them to keep track of what products they have in stock, how much inventory they have, and when they need to order more products. Incomplete or inaccurate inventory records can lead to stockouts and excess stock, both of which can be costly for a company.
Additionally, if a company cannot track its inventory, it may not be able to identify theft or loss.
In the United Kingdom, inventory shrinkage (theft and loss of stock) totalled £5.3 billion in 2021. This accounted for 1.4% of all sales in the country. The retail industry suffered the most, with 2.2% of all sales lost to shrinkage. The transportation and warehousing sector had the lowest rate of shrinkage, at just 0.3%.
There are a few ways to combat inventory shrinkage. The first is to improve visibility and tracking of inventory. This can be done with tools like RFID tags or barcodes. With accurate tracking, businesses can more easily identify when stock is going missing and investigate the source of the loss.
Another way to combat inventory shrinkage is through security measures. This includes things like security cameras and guards, as well as fencing and other deterrents. By making it harder for thieves to steal stock, businesses can reduce the amount of theft that occurs. Overall, improving visibility and tracking of inventory, as well as implementing security measures, can help businesses reduce the amount of inventory shrinkage and boost their bottom line.
Without accurate inventory data, it can be difficult to make informed business decisions about what products to stock and how much to order. Some of the benefits of accurate inventory data include increased sales and profits, as well as improved customer satisfaction. The benefit of accurate inventory data is that it can help to improve customer satisfaction.
When a company has an accurate understanding of what inventory it has on hand, it can more easily meet customer needs and expectations. Accurate inventory data allows businesses to identify which products are selling well and which ones are not. When businesses know what products are popular, they can order more of those products, which will lead to increased sales as customers are more likely to return if they are satisfied with their experience.
Additionally, accurate inventory data can help businesses determine how much profit they are making on each product by showing them which products are selling and which ones are not. This information can help businesses make changes to their inventory to ensure that they are making the most profit on the products that are selling. It can also help them to determine whether they should continue to carry a certain product if it is not selling well.
When businesses know what products their customers want, they can order those products and have them available when the customers need them. Customers will be more satisfied as a result of this because they will not have to wait long for the items they need. Having accurate inventory data also allows businesses to plan production, ensuring that they have enough products on hand to meet customer demand. Planning production in advance helps reduce waste and keeps costs down, making it easier for businesses to offer lower prices to their customers.
The warehouse industry is notorious for overspending due to a lack of inventory data. Without an accurate understanding of what is in stock and when it will be depleted, warehouses are often forced to make guesses about how much they need to order. This can lead to unnecessarily large orders and ultimately wasted money.
One way to combat wasteful spending in the warehouse industry is through the use of inventory management software. This software can help businesses track their stock levels and forecast future needs, allowing them to order only what they need. This can save companies a significant amount of money in the long run.
Some businesses have been able to improve their inventory tracking and visibility by using a warehouse management system (WMS). A WMS can help track inventory levels in real time, making it easier for businesses to identify when they are running low on stock. This can help to prevent overspending and ensure that businesses have enough products on hand to meet customer demand.
Another is by implementing an RFID system, which can help identify items as they are scanned and tracked through the warehouse. Either of these solutions can help reduce overspending and improve efficiency in the warehouse.
Inventory visibility and tracking are essential for any business. By understanding what inventory you have, you can ensure that customers are getting the products they need when they need them. You can also make sure that you are ordering the correct amount of each product, preventing wasteful spending in the warehouse. Implementing security measures, such as an RFID system or a warehouse management system, can help businesses keep track of their inventory more accurately and efficiently. This will lead to improved customer satisfaction and increased sales and profits for your business.
Getting in touch with us can help you learn more about how inventory visibility and tracking can benefit your business. We would be glad to explore the different solutions and support options that are available to you.