Implementing the right small business ERP software is an essential step in gaining small business stock control. The management of stock, or inventory, is something that many small to medium sized businesses struggle with. And not gaining small business stock control can cost your business significantly. What are the measures of small business stock control that inventory tracking software or small business ERP software will help you to understand and gain control over?
Lost sales
This metric provides the number of customers who asked for an item from your business but you didn’t have it in stock (within the time frame that they required the item). It can then be assumed that they go elsewhere to get the product they’re looking for and can therefore be measured as a lost sale.
Inventory turnover
Small Business ERP software will provide you with a turnover measure. This is a measure of how quickly your business uses up and replenishes stock. Higher turnover means that stock is spending less time sitting in warehouses and/or on shelves. Understanding your turnover rate for different stock items is key to gaining small business stock control.
Inventory accuracy
You will not achieve small business stock control if you don’t understand what stock you are holding at any given time, or if you can’t produce accurate reporting to confirm what you think you have in stock.
Item fill rate
The right small business ERP software solution will help you to understand the percentage of items a customer ordered that you were able to fulfil. This provides a valuable insight into your small business stock control. The lower the percentage the poorer your stock control.
For further information on inventory tracking software to achieve small business stock control take a look at Foresiight’s flagship all-in-one business management software ProfiitPlus.
