Optimizing your inventory requires a delicate balance between stock and service levels. Hold onto too much stock and you end up paying for items to collect dust. Conversely, too little puts you in the hot seat to meet customers' expectations. For most small and midsize businesses, managing inventory is a daunting task however automated solutions (previously only feasible for large-scale operations) are rapidly replacing spreadsheets, gut feel, and manual processes.
According to Valogix, inventory planning and optimization specialists, today’s flexible technology opens new doors for small and midsize businesses. Companies that adopt automated inventory management solutions can dramatically improve cash flow, customer service, and sales.
Valogix reports, in its e-book called Inventory Planning Critical to Success (link below), that its customers achieve outstanding results:
- Reduced inventory by 20% to 40%, usually within 6 months
- Fewer expedited and emergency shipments by 35% or more
- Improved productivity through shortened planning time by 60% to 80%
- Controlled and reduced replenishment spending by 15% or more
- Improved service levels by stocking items that customers want by 5% to 15%
- Reduced stock-outs by 15% to 30%
- Increased sales of 15%
- Reduction in cost of goods by 5% to 10% due to improved vendor relations
As an example, based on an inventory value of $1,000,000 and an average inventory reduction of 30%, the positive impact on cash flow is $300,000. If that’s enough to convince you that you need to look into an automated inventory management solution, here are some tips.
3 key considerations
- Scalability – your solution should meet current and future needs, such as multiple currencies and warehouses
- Integration – to truly streamline inventory management, it must be synced with your sales, financial, and operational systems
- Real-time data – you need an up-to-the-minute view of your inventory to accurately track levels
Takeaway – Don’t wait to unlock cash in your inventory
Putting off the decision to automate your inventory management is costing you money. To explore solutions that meet your specific business needs, talk to a Zantek expert.
Useful links related to this article
> Contact Zantek: Request an inventory management assessment
> eBook (Valogix): Inventory Planning Critical to Success
> Product demo (SAP): Streamlining Inventory Management
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| The essential traits of an excellent technology vendor - your top 5 checklist |
| In today's do-more-with-less business environment, technology is emerging as the primary driver of efficiency and profitability. It's an ever-evolving area of your business that, in the right hands, can provide a strong competitive advantage. How does your technology vendor measure up? |
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