You should treat your warehouse operations like a well-oiled machine. And to keep things running at their best, you'll need to make sure you are measuring and tracking inventory coming into and out of your warehouse. It is crucial to make sure inventory data is visible to employees and managers so they can understand data trends and predict future demand for similar products. Here are some reasons your business should strive to measure and track inventory at all times in the supply chain:
Improved customer experience
When warehouses have the right amount of inventory at all times, they can meet all customers' needs and demands, which may vary on a given day, week or month. Tracking inventory means all ordered goods are available and in the right places, making it easier to deliver to customers in a timely manner. This is especially crucial in today's ecommerce-driven economy, when customers keep a close watch over their expected delivery dates.
On the flip side, when goods are not properly stored or when the warehouse is under-stocked, you may not have enough to send to clients. This, in turn, can reduce the amount of revenue your business can gain in a designated period of time. If you are overstocked, your warehouse may be overcrowded and therefore disorganized, causing you to lose materials or store them in the wrong places. This is especially detrimental for warehouses stocking perishable goods, as waste may result if the warehouse overstocks on these items.
Manageable shipping expenses
When your business is shipping items directly to customers, the deliveries are probably required to reach their homes by a certain date. When materials are under-stocked in your warehouse and you don't have enough supplies to send out to customers who have already paid, you will need to pay last-minute shipping costs to get any essential materials delivered to your warehouse and expedite the shipping to the customer. Depending on the size of your order, you may be expected to pay hundreds of dollars in last-minute shipping costs, which can significantly cut into your profits.
Other than the absence or surplus of materials cutting into the warehouse business's financial bottom line, there are other financial consequences that are caused by inventory inaccuracies. For instance, businesses that keep track of their inventory are more likely to update their balance sheets and other reports on a regular basis. When your warehouse falls behind on its accounting, the business might experience inaccurate stock cost values and incorrect profit reporting. While keeping inventory accuracy in check is crucial here, businesses should also check their management tools and inventory at least once a month.
Find a job near you now.Search Jobs
Thank you for contacting us. We will reach out to you within the next 24 hours.