3 Inventory Management Mistakes and How to Avoid Them | IoSCM
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3 Inventory Management Mistakes and How to Avoid Them

  • General News
  • 3rd September 2021

Inventory management is much more than getting products into customers’ hands. It’s about the whole “journey” a product makes from supplier to manufacturer to wholesaler to retailer to consumer. It also contains the actual entities that handle the product and any data that goes along with it. These are the order status information, payment schedules, ownership titles and more.

As you might imagine or already know, an efficient supply chain helps a business save money. The proper management can lead to shorter factory processing times, faster client deliveries, and better inventory management. And for that, in the end, it is the supply chain that is responsible for the satisfaction or disappointment of the customers. So, let’s see three common supply chain mistakes that many businesses are guilty of and what you can do to be a shining exception.

Ignoring there is a supply chain

As unbelievable as this may seem, the most common inventory management mistake is to totally ignore a supply chain. Many business owners believe that supply chain management is only a game for the big players. That cannot be further from the truth. While a starting eShop business can be just fine handling their orders with a simple e-commerce solution. Once traffic starts picking up, it becomes vital to manage and monitor all product movements professionally.

Relying on spreadsheets

So you might acknowledge that there is a supply chain and try your best to monitor the processes. In their efforts to cut expenses, a significant number of entrepreneurs might think that using spreadsheets is a good idea. It’s not.

At first, using spreadsheets to track inventory may seem harmless. There are few orders or stock-keeping units (SKUs), and it’s easier than setting up an inventory management system. The sneaky problem is that the longer you use it, the more you rely on it. After a while, your business would have grown, but you will still be stuck with the same spreadsheet for inventory tracking that is obsolete. Looking back into previous orders will become harder and harder. Tracking product returns or repairs will almost always cause problems and delays, and reporting  – the primary purpose of keeping track of everything- will be too much of a hassle or simply inaccurate.

So, what do you need to do to prevent this? One of the best ways to improve your supply chain strategy is utilising an ERP (Enterprise Resource Planning) software. Today.

Using an ERP software that’s not for you

Choosing the right ERP system can be overwhelming. Today, there are many solutions, and you might find it too difficult to decide which one is best for you. Nevertheless, it would help if you did your homework, or otherwise, you will end up paying much more for a system tailored for businesses relatively larger than yours. That is a system with too many features you don’t need or use, but you pay for them anyway. So, make sure to select a supply chain management software that is tailored for your industry and company size.

If you are not sure what is best for your company size, cloud-based solutions might save the day. One of their most significant benefits is that you save immensely on implementation and support costs, as you don’t keep the servers yourself. By using an online inventory management system, a business enjoys access to a team focused on the shop’s software and networking hardware side. This frees up internal staff to run day-to-day business operations and results in operational savings and efficiencies. And at the same time, as you pay a subscription, if you are not satisfied with their service, you can cancel at any time and move to the next solution that looks promising.

Wrapping up

To sum all this up, supply chain management is not just for the big players but for every company that aspires to deliver top-notch services. I hope that I helped to clear some common misunderstandings and motivated you enough to take action today.

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Author’s Bio

Stamatia Manolara is a Digital Marketer and Content Creator for Megaventory. Her passion is staying up to date with the latest digital marketing technologies as well as upgrading her skills and developing new ones.

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