Inventory Management for Small Businesses

  • February 6, 2020
  • By Sarah Solomon

Keeping track of inventory and updating it is crucial for any business.  However, for small businesses, the way you upkeep your inventory has a direct effect on your sales and demand. Quite simply, inventory management is a necessity.  Do you have a proper system to manage your inventory? If not, REIL has some advice on how to start implementing one. 

What is Inventory Management? 

Inventory Management is typically a component of any business supply chain.  As a small business, you have inventory coming in and out of your business each and every day. Specifically, inventory management supervises the flow of goods from manufacturers, to facilities, to the final point of sale. Thus, having an effective inventory management system can improve internal controls, prevent damage or theft, and ultimately analyze sales. 

How Can You Use it In Your Business? 

As previously mentioned, inventory management is necessary for your business.  Inventory management can be used for various segments of your business. REIL is going to detail the segments where inventory management is helpful below:

Customer Service 

Inventory Management plays a huge role in customer service.  It is important to be knowledgeable of the products that are in stock, and those that aren’t. For example, you don’t want to allow a customer to order a product that is no longer in stock. Additionally, a good inventory management system will allow you to track production and backorders.  Consequently, you can give customers an accurate estimation of when the item will be available or back in stock. 

Supply and Demand 

With a good inventory management system, your company will be able to accommodate your customers correctly.  Long term supply and demand data enable you to see which products are the most popular, which products sell, and what products customers actually want more of. 

Theft Control

Hopefully, theft is not an issue for your small business.  It is because, whether it is or isn’t. An inventory management system can be both a good preventative measure and a solution.  In short, theft control is very significant if you have a physical shop and do not just operate online. An inventory management system will allow you to see the number of products you have at a given time, your revenue from sales, allowing you to acknowledge if anything is missing. 

Tracking 

With an inventory management system businesses are able to track their inventory. This way, you can market the items that are on their way, and stay away from those that are not currently being produced.  

REIL Talk 

However, if you or your company is in need of funds to invest in an inventory management system. Then, fill out our commitment free application today!  REIL ensures we will help your business grow and prosper. 

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