Knowledge is power. Greater intelligence from your inventory management systems can lead to a competitive advantage and increased profits. Better knowledge starts with great data. That’s why your warehouse data collection systems are so important. Accuracy is critical to making the best decisions.
Here are three ways better information derived from your inventory management systems can lead to increased ROI.
Better Data Collection, Improved Knowledge, Greater Profits
Good inventory management systems along with your ERP provide data that can be used to create new business models, understand current problems, and set new objectives. The following three examples of how better data collection and greater intelligence improve ROI may spark your thought processes on how you can use your warehouse tools to greater advantage.
#1: Develop new business models.
When you look at the same data week in and week out, your mind becomes habituated to the picture it paints, and it’s hard to look beyond it to find something new. Often companies become entrenched in existing business models simply because no one has looked carefully at the data undergirding the assumptions behind the current models. Freshly generated data may paint a surprising picture, leading to new ideas and a new business model. These new business models may, in turn, boost profits and ROI.
#2: Find revenue drivers.
“Everybody knows that Widget XYZ is what sells the best!” It’s easy to fall into the habit of quoting institutional knowledge as if it were gospel. When you hear “everybody knows that”, it’s time to run a new report from your business systems and see if the data matches the assumptions.
Instead of the assumptions driving decisions, data can now drive decisions. When you see the facts, you may find new revenue drivers or areas to exploit for add-on sales or additional revenue. The facts don’t lie. When you find something that’s selling well, you’ve found your revenue drivers.
#3: Understand your best customers
The customers who generate the most revenue for your business are more than your best customers. They’re also the model for future marketing and sales campaigns. By analyzing the features of your best customers such as the industry they’re in, their annual revenue, decision making process, problems your company solves and more, you’ll be able to derive a model for future marketing programs.
But you can’t do it without good data. Accurate data are the foundation for improved decisions about inventory, orders and customers. Translation? Better ROI.
Automated Inventory Management with Sage 100 Barcoding Solutions
Scanco Warehouse, a Sage 100 barcoding solution, can help you improve the data you collect so that you can gain more knowledge about your business. Contact us to see how we can help you improve your inventory management and increase profitability.