Simplifying your inventory
If you run a retail or manufacturing business, you’ll know about inventory management. You’ll understand that it can be part science and part art, because it’s hard to predict future demand based on past sales. Yet the success of your business depends on getting this right. Your sales forecast should be tied to your inventory management to ensure you don’t:
- overstock and get stuck with excess inventory (which you will have to figure out how to get rid of by discounting or giving away)
- run out of inventory (which will lead to lost sales opportunities)
But that’s just part of the problem. Storing, moving and delivering inventory can also be complex, time-consuming and expensive. This can be a drain on your time and resources. It can also make it hard to scale up your business.
That’s why some businesses choose to outsource some or all of their inventory management. In this guide we’ll look at what that involves and see if it might work for you.