As a business owner, the last thing you want is for a customer to attempt to make a purchase when inventory isn’t available. Not only does this lead to a drop in customer satisfaction, it means you are missing out on sales. This will inevitably hurt your bottom line – and it is exactly why inventory management is a must.
Automatic messaging about low inventory can help you avoid this situation in the future.
The Importance of Monitoring Inventory Levels
If we are being honest, the success of your business rests on your inventory. Think about it – if you do not have any inventory, you have nothing to sell and no way to generate revenue. If you have too much inventory or too little, then your supply and demand will be off (as will your financials). And, if your focus is on the wrong inventory, then that could be an issue for your bottom line, too.
Monitoring your inventory can help you to:
- Be prepared to meet the demand
- Gather reports to be able to track trends and be more prepared
- Greater customer satisfaction
- Minimize theft and loss
- Become more efficient
- Lower your warehouse costs – without having to store excess items
The list could keep going. Just as an ice cream shop will want to make sure they have the most popular ice cream flavors to sell, your business needs to do the same. But how?
When to Set Low Inventory
So once you have your eye on your inventory, how do you know when is a good reorder point? How do you know when you should get more inventory into your warehouse? And how low should you let it go before you make that move?
Technically, this is something that can better be answered after you do some long-term monitoring of your sales and gain a greater understanding of your industry. However, in general, pay attention to the products you reorder. Look for trends within the reorder pattern. Are there some you order every month? Every week?
Once you see the frequency of your purchases, notice how long it takes the supplier to get the shipment to you. How many days fall between the time you order and the time you receive the new stock?
To find out when you should order, determine how many daily sales you have had of the product over the last quarter and then multiply that number by the number of days calculated above. The answer gives you an idea of when you should order new stock. Padding the number a little just in case can’t hurt, either.
The process can be tedious and can require your constant attention. Of course, all of this can be done much easier if you have an inventory tracking software program running reports for you with the click of a button. To help you streamline your processes and ensure you always have the right amount of inventory, this could be a very ideal investment.
How Do You Automate Messages When Inventory is Low?
Using an inventory tracking software system, you can reap some incredible benefits – including the opportunity to automate messages when inventory is low. The right software system will monitor all inventory at every stage so, at a glance, you can see what you have and what you don’t.
Based on history and reports – or parameters set by you – the software program will email you to advise you are low. This will prompt you to make that order as soon as possible so you don’t have to ever worry about missing out.
Inventory Management Software with Tracmor
Tracmor offers powerful online inventory management software that gives you the most effective way to monitor all aspects of your inventory – including the ability to receive automated restock messages. Take the step to help your business run with clear visibility.
To learn more or schedule a free trial, contact us at (760) 304-8900.