4 Practical Points that Show why Inventory Management is so Important
It’s not unnatural to get scared with the word “inventory” as it may seem only one thing: countless “counting”! Businesses usually bring together their inventory at the end of the year by counting all their products and check if it matches what’s in the books. In big companies, this needs the help of everyone.
But sooner or later, business owners can understand how important perfect inventory management is. It’s a placeholder for money. You pay for it and you’ll regain the money you paid when you sell it. Tools like Cring Bring make your job of inventory management easy for you. This is a powerful cloud software platform that develops apps that help business grow by offering features like inventory management system, stock management system, order management system, vendor management system, library management system and all other types of online inventory management system and designing a solid business growth strategy for you.
Why is Inventory Management Important?
A lot of cash is tied up when you hold inventory. Therefore good inventory management is essential for any business to grow. It can make or break your business.
Good inventory management can save your money in the following ways:
1. Avoiding Spoilage
If you are in a business of a product that can spoil (has an expiry date), such as food or makeup, there is indeed a risk that it will spoil if you can’t sell it on time. Good inventory management helps you avoid such unnecessary spoilage.
2. Avoiding Dead Stock
Dead stock is the one that can’t be sold any longer, but not essentially because it expired. It may go out of style or season, or just may not remain relevant. When you can manage inventory better with the help of tools like Cring Bring, you can avoid dead stock.
3. Saving on Storage Costs
The cost of warehousing is varying, which means it keeps changing depending on how much product you have stored. If there is too much product at once or a product that’s tough to sell, storage cost will increase. By proper inventory management this can be avoided.
4. Improvement in Cash Flow
Not only proper inventory management can save your money, but it also increases cash flow in other ways. Keep in mind that inventory is a product for which you have made cash payments already (electronic transfers and checks too are considered as cash) and you’ll be selling it for cash; but when it sits in your warehouse, it’s certainly not cash. Therefore it’s essential to factor inventory in your cash flow management.
Considering the tremendous importance of inventory management for your business, start acting at once! Get yourself an efficient tool like Cring Bring and start doing the right things on time to make your business grow.