3 ways poor small business stock control is costing your business
Small business stock control is something that you know you should be better at right? For most business owners, as their business grows they understand that they need to implement inventory tracking software or all-in-one business management software to properly gain control over their stock. However, it’s often put in the “too hard” basket or on the list of tasks to complete later. So what is the true cost to your business when you’re unable to achieve small business stock control?
Over-ordering on stock results in costs for your business to store and transport stock that you don’t need. It can also result in damaged or deteriorated stock (the longer that stock is stored the more likely it is to get damaged) and devalued stock where stock is seasonal or fashionable at a given point in time. Overstocking can result in the need to heavily discount products in order to get them off your shelves or out of your warehouse.
If you don’t have the right stock available for customers within their required time frame then they will go elsewhere to purchase the product. Perhaps a competitor who has achieved small business stock control or a larger competitor brand. This hits your bottom line hard in the form of lost sales. However, if you are not tracking the value of unfulfilled orders you will have no idea just how much this is impacting your bottom line.
Inability to forecast
How does accurate forecasting enable small business stock control? Without inventory tracking software or all-in-one business management software business owners rely on guess work to try and figure out how many units of a certain product they’ll move within a certain timeframe. And to the points above this can result in both overstocking and lost sales.
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.