We rule where is the inventory

Some companies regularly identify and sunset their worst performers to free up resources to add new SKUs or services. Others attempt to remediate, adjusting their inventory and supply chain relationships to cut costs while looking at whether these poor performers could benefit from an investment in marketing. There are endless permutations where the principle has proven true.

Most CFOs appreciate data-driven methodologies to increase profits. This is where trend reports are invaluable: Companies with modern ERP systems can add context to show which midrange products or services are steadily increasing in popularity or have profit margins that make them worth continued investment. Companies should also reach out to sales leads for insights into less popular offerings that inspire outsize customer loyalty.

But it should be used in a balanced way to ensure your customer base stays happy and your business continues to nurture new products and services. But it also wants to have vehicles with popular combinations of options on hand so that customers can drive away with brand-new cars immediately if they wish.

It further encourages customers to choose from that top list of performing vehicles by advertising and promoting those profitable models. Lessons for all companies include adding geographic context and coordinating inventory management with marketing and sales efforts.

In fact, with the right software and tools, getting started is a straightforward process. That can be a more effective route versus a standalone inventory management system because you can more easily incorporate financial and other data in reports. Then, using your inventory or ERP system, generate a list of products that generate both high sales volumes and strong profits.

This is the purview of inventory control, also called stock control , specialists who make sure the right type and amount of supplies are available at the right time to meet customer demand. He finds an online store specializing in smart bags, and what luck! Not only do they have a great selection, but the company is locally owned and operated which the couple appreciates. He takes a risk and places an order. But once the order clears his cart, he receives an email saying that his selection is backordered.

He is immediately back online, seeing if they have the same handbag on Amazon. What would have been a fan quickly jumps ship for a more convenient option. These example show that the question of how much inventory to carry is not just an academic exercise in coming up with some arbitrary number. To prevent avoid backorders, you need to keep the right levels of inventory in stock in warehouse —and know precisely when those levels are getting low, with enough lead time to do something about it.

In the meantime, if you are interested in 3pl software solutions that can tackle some of these problems, and a demonstration of in action, contact us. We can link to a gated resource within the blog listing if that makes sense to route users to gated content to capture qualifying information.

Want the latest content delivered direct to your inbox? You've got it - sign up below! Order Management. First Name. Count me In. Click below to get in touch with the software and technology experts at Acumen Information Systems if you want information, pricing, a demo, or support for Sage. Facebook Twitter. Join Our Newsletter Get Sage product updates sent straight to your inbox. How much of your space is taken up with stuff that is in that 80 percent of stuff that doesn't sell very well?

If you want to maximize the value of your storage space, minimize the space used for the stuff you rarely sell and maximize the space used by the stuff you frequently sell. For many businesses, this can often mean less storage space and perhaps more floor space or lower costs in exchange.

Skip to content. Business Cards. Payment Solutions.