January is the time many companies revisit their sales numbers from last year in order to create accurate forecasts and sales strategies for the year ahead. If your sales were lagging behind the competition last year, now is the time to focus on improving your efforts. While you can’t manipulate your customers to buy more products and services, you can make some internal changes to boost your sales efforts for the year. Creating an ecommerce site to supplement your brick and mortar location is a good first start (if you have not already done so). Developing new, innovative, and high selling products is also beneficial; however, none of these efforts will make a dent if your inventory management is lacking.
Inventory management is crucial to the overall success of your company. In fact, the way you manage your inventory has a direct impact on your company’s bottom line. Improving your inventory management strategy will almost immediately have a positive effect on your company’s sales. Knowing your current stock levels and the appropriate amounts to maintain will improve your customer satisfaction rates, for you will be able to complete orders on a much more timely basis (since the product is in-stock). Poor inventory management often leads to declining customer retention rates, which has a direct impact on sales.
Don’t let the competition steal your customers because you practice poor inventory management. Change your strategy, keep your customers, and improve your sales this year! Below are a few tips designed to help you ensure that your company’s inventory management processes are leading you to better days:[gearlist]
- Examine past orders and adjust your inventory levels as necessary
Looking at past order trends will give you crucial insight into your inventory management process. If a specific time of year is notoriously slow, adjust your inventory levels accordingly. If you continue to order the same amount of supplies for fast-selling items and slow-selling items, you are not going to be able to effectively meet the demand long-term. You will lose money if you continue to stock low-selling items and run out of fast-selling products. Examine past sales trends and shifts in the industry and adjust your ordering process accordingly. Being able to accommodate your customers is imperative and can lead to an overall boost in your company’s reputation.
- Experiment with package bundles
If your sales numbers were good, but not great, last year, now is the time to experiment with ways to get your customers to purchase more items. Bundling is a good option, particularly if your customers are shopping online. Suggest and display complementary items on product pages to entire your customers to purchase more. Make sure your suggestions make sense and provide real value for your customers. If you are suggesting random items, your customers will see right through your sales pitch. However, if done right, this strategy could significantly improve the amount of items you sell and your company’s bottom line.
- Use an effective inventory management software solution
The days of monitoring inventory levels using spreadsheets and paper-based processes are over. If your company is still relying on these strategies, you are missing out on crucial cost and time savings. Inventory management software can provide you with a realistic view of your current inventory levels and help you manage your levels in the future. Effective inventory management relies on effective software. If you are not using inventory software to improve your inventory management efforts, it’s time to make the switch today.
We provide a number of software solutions designed to help you meet your inventory management needs. Our Automation Series for Sage 100 (formerly MAS 90 / MAS 200) and Sage 500 (formerly MAS 500) implements the use of barcode scanners in the warehouse to help you manage inventory levels. Our newest mobile applications – Scanco Warehouse and Scanco Counts – allow you to use your iOS, Windows, or Android devices to manage your inventory levels. With access to real-time data and information via the Cloud, these apps integrate seamlessly with your Sage 100 ERP solution and provide you with real-time information wherever you are.
If your company could benefit from inventory management software, contact us today. We understand the importance of inventory management and can help you realign your strategy to improve your sales. Don’t make the same mistakes you made last year! Start incorporate new technique to sustain lasting profit.
Have you recently revised your inventory management strategies in the face of new technologies? If so, share your experience in the comments. We’d love to hear how you incorporated innovative ideas into your stale processes!