In today’s fast-paced world, small business owners are looking for opportunities to streamline their processes and maximize their profits. Increased competition from online retailers and subscription services are further complicating matters for traditional brick and mortar stores as well as emerging ecommerce startups.
Online Inventory Management
One of the ways small businesses can remain competitive is through the use of online inventory management software. These cloud-based services provide competent, efficient inventory control at a fraction of the cost and hassle of other methods.
Complete online inventory management solutions allow small businesses to:
- Track inventory in real-time: Always know what you have in stock, where it is, and when you are running low.
- Sales tracking: Know what products are on the move and when. Use the information in sales projections.
- Identify Trends: Determine what products are moving quickly while others lag.
- Manage supply of complementary products: Maintaining an adequate supply of products that complement each other (peanut butter and jelly, for example) helps increase sales on items that customers want to purchase at the same time.
Other benefits include identifying cost and margin change alerts, tracking vendor rebates, and more. Online inventory management systems help businesses efficiently track and manage their inventory, saving time and money in both the short and long-term.
Save Time and Money
Many small business owners are hesitant to adopt an online inventory system, favoring a more traditional hands-on approach. The inherent problem with old school inventory tracking is that it may actually create more hassle and work than is necessary.
An article published by Entrepreneur identifies four essential elements of inventory management:
- Avoiding Excess Inventory: A constant problem for small business owners is waste management, especially with perishable or seasonable goods. This is the reason why stores essentially give away Christmas decorations on December 26th. Small businesses can run into a lot of trouble if they find themselves holding on to too much stock that isn’t moving.
- Maintaining Enough Inventory: The other side of the previous problem is making sure you have enough inventory to meet the demands of your customers.
- Tracking Inventory: Knowing what is moving and at what pace is vital to inventory management as well as efficient, timely ordering processes.
- Inventory and Cash Flow Analysis: Determining the most profitable products as well as establishing and maintaining accurate margins
Through careful management of these four elements, it is estimated that businesses can increase profitability by 20-50%. The bad news? Inventory management can be a time-consuming, costly process if not done properly. The good news? Complete online inventory solutions can effectively manage those four key elements.
The Future of Inventory Management
As we continue to progress into a future where technology is integrated into more aspects of our live and business, online inventory software is opening doors for small business owners. These systems are not only making life easier, they’re increasing profitability.
When you combine increased profits with more efficient use of time, online inventory management systems yield a massive return on investment for small businesses.
