Good inventory management software is absolutely worth the investment, especially when you consider the cost of excess inventory.
Good inventory management software is absolutely worth the
investment, especially when you consider the cost of excess inventory. Those
sweaters that didn’t sell, the parts stacked up to the ceiling in the
warehouse, or the boxes gathering dust cost your business much more than
headaches. Here are the truth costs of excess inventory, and why good inventory
management pays off in so many ways for your company.
Every time you order inventory that doesn’t sell quickly,
you’ve tied up valuable capital that can otherwise be used for marketing,
sales, or operations. Inventory that doesn’t sell is like the proverbial money
stuffed in a mattress. Its money that’s hard to turn into liquid capital fast
enough to satisfy the demands of your business.
Shelf space, bin space, and other space in your warehouse is
a valuable asset. Each square foot of
your warehouse costs a certain amount to run. There are electricity costs,
heating costs and so on. Merchandise that just sits there without selling is
taking up square footage that could otherwise be used for better purposes. This
is an investment that doesn’t pay off and costs your business valuable capital.
Excess inventory also incurs labor costs. Inventory must be
maintained and monitored, even if it’s sitting idle in your warehouse. This
costs manpower hours that could be spent on other, more profitable tasks
Accurate, timely information is the solution to your excess
inventory problems. With the right data, you can schedule reorders accurately
so you’re not drowning in excess inventory. You’ll know exactly when you’re low
on items that sell well and when others are piling up in the warehouse. Good
data takes the guesswork out of inventory management.
topShelf from Scout Software is the inventory management
system that provides accurate, real-time information. It’s the best system on
the market for growing e-commerce businesses. Visit our
online learning center for more information on topShelf from Scout