Inventory Management is one of the most important priorities of a business. By managing your inventory you can make your business more efficient, avoid mistakes, and reduce costs. This way you can make the most out of your business and have the best results possible. But sometimes it’s difficult to find the right techniques and strategies, so we’re here to help and give some inventory management solutions.
In this article, we will discuss recent statistics on inventory management and what their value is for you so as to elevate how you do business.
5 Statistics About Inventory Management Solutions
By doing some research, we’ve found 5 statistics that are impressive and can prove to be helpful for you and your company. Specifically, the websites we chose the statistics from are Conveyco and Myos. We also gathered some suggestions and inventory management solutions for you to try and elevate your business.
1. A top ten reason for startups to fall is that they do not manage their inventory.
Managing inventory is a crucial practice for any business, even a start-up. It’s important to implement inventory management practices in order for a business to stay well organized.
There are many advantages to managing your company’s inventory. It allows you to prevent stockouts, minimize excessive inventory, and reduce the impacts of labor shortage. It will also help you improve your efficiency and overall productivity. There are also many inventory management techniques that one could follow. Such are First-In-First-Out (FIFO), Last-In-First-Out (LIFO), Just-In-Time (JIT) Inventory and ABC Inventory. There are a lot of options for you to choose from, so you can find what best fits your needs.
2. 24% of small businesses track their inventory with a pen and paper.
As mentioned before, managing your inventory is important for a business, but it’s also important to do it efficiently. Although this percentage initially seems small, it corresponds to almost 1/4 of small businesses!
Tracking your inventory can be very crucial and can be achieved by using inventory management software, such as an ERP system. This will help you track your inventory in real-time and identify your needs as you go. It will also help you reduce costs, as fewer mistakes will be made, enabling you to invest your money in new things for your company. Definitely an upgrade from pen and paper!
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3. 75% of all supply chain management professionals want to improve their inventory management practices.
There’s a reason so many people want to improve their inventory management practices. That’s because making sure your inventory practices run smoothly is crucial for a supply-chain operation. Doing it effectively ensures that you maintain the right inventory levels, gain customer satisfaction, and increase profitability. So we could say that bettering your inventory managing practices and being more precise, enables you to achieve your goals as a supply chain.
4. The top issue in 46% of warehouses today is human error.
Human error is very common as you can see and it’s natural. The most effective way to minimize human errors while managing your inventory is by implementing automation. Not having to rely on your employees for simple or repetitive procedures but rather taking advantage of technology, will help take your business to the next level. Automating or digitalizing processes, Artificial Intelligence, and robotics are here to change the future and help you improve your productivity.
Something else you should definitely take advantage of is cloud computing. Having everything online, on the cloud, can boost your business by making sure everything is scalable, flexible, cost-efficient, and safe. By collaborating through the cloud everything in your business can move on faster.
5. The average level of inventory accuracy in US retail operations is a modest 63%.
Let’s face it, mistakes are bound to happen. Inventory accuracy is a value that for all businesses is important to stay high. Making sure that your physical inventory matches your recorder inventory minimizes those mistakes and makes sure your company is not at stake. There are different techniques that help you count your inventory, and we can help you find out about them here.
Inventory management is something that every company should do, and it needs to be done efficiently. As we saw from the statistics above, there’s a lot of room for improvement, but we’re here to help! By implementing techniques like counting your inventory or using ERP software you can make sure that everything is under control at all times and boost your business.
Vasilina Maglara is a Digital Marketer from Greece. She works at Megaventory, a company that makes ERP software for medium-sized businesses. Eager to learn and grow, Vasilina is helping Megaventory and its customers succeed through effective marketing and content creation.