Learning everything there is to know about inventory might seem like a superhuman task, however, once you start incorporating an inventory optimization solution, you will end up saving cash and time, while delivering exceptional customer experience.
Making use of an inventory optimization solution helps you to understand what inventory is needed for you to meet customer demand and lower operating capital for you to deliver on time continuously.
Inventory optimization software enables you to keep tabs on where your stock is located in the overall network and how much goods you have in stock at any given time. This can be especially advantageous to your business from a sales, stocking, and customer service viewpoint, permitting you to offer your customers what they require when they need it.
The main advantage however of optimizing your stock is the decrease in working capital. By saving cash on superfluous stock, you can rather use the cash to inject it into other vital areas of the company.
Inventory optimization software can assist you with ensuring that you only keep enough stock on your shelves.
You can effectively balance how much inventory is required on-hand to meet the goals you have set for the business, providing you with accurate data to assist you with making an informed decision.
Without further ado, here are the 5 key benefits of inventory optimization.
1. Decreasing Your Operating Capital
Optimizing inventory enables you to lower your operating capital (by lowering surplus inventory buffers) and boost your service standard.
It helps you in getting customers what they require when they need it without having too much stock.
- Reducing inventory by ten to thirty percent.
- More capital to apply to other key areas in the business.
2. Inventory organization
Inventory planning achieves:
- Reducing inventory levels and enhancing turnaround times. You can efficiently calculate time-phased inventory strategies instead of stockpiling surplus goods.
- Easy setup of the most efficient safety stocks and replacing quantities per individual product.
- Optimizing allocations per site.
- Avoiding redundant inventory by increasing your stock turnover.
- Preventing outmodedness.
- A reduction in marked down quantities.
- Saving prized space in the warehouse.
3. Eliminating supply-chain inconsistency
More advanced discernment of procurement, service needs and production expenses.
- More effective workings
- Lowering production and transportation fees.
- No disruption of the current stream of products.
- Enhanced customer satisfaction.
- Obtaining goods, a lot quicker.
4. Taking care of your customers
With the extra advantage of demand placement and forecasting, you will lower stock-outs, enhance delivery, and meet the demands of your customers more frequently.
- Boosting customer service levels.
- Driving brand loyalty from the warehouse.
5. The impact on your employees
Your employees will have a better sense of confidence, knowing that they are selling the correct goods at the appropriate margins. The enhanced information translucence provides you quicker lead times and more cost-effective expenses and mitigates needless storage and handling.
An inventory optimization arrangement provides you with advantages across the board. Not only does it assist with streamlining your operations, but it also creates valuable insight to aid you with decision making.
If your inventory optimization solution is a perfect fit for your company, it can save you substantial amounts of cash by right-sizing your stock, lowering surplus inventory and leaving extra capital to invest in other essential areas of the business.
Are you considering inventory optimization? Which benefit is most important to you in your business?