Prime Day, back-to-school, holidays, oh my! This time of year leads to big numbers for retailers, while sales and seasonal items rake in profits. As grandiose as this sounds, it also highlights lurking issues in inventory management. The key is to anticipate these issues before the big season to shed light on possible pitfalls, so they don't become sink holes.
Kriz Kniaz, CTO at Cin7, explains that as sellers gear up and the inevitable influx of sales follow, it’s crucial to keep track of on-hand inventory to keep up with demand and prevent stockouts.
"When selecting an inventory system, it is important to recognize that a business does not function like an island. Rather, it’s connected to other partners in the supply chain network. Therefore, it is critical that their inventory system has the capabilities to easily network to other businesses and exchange information in a reliable and resilient fashion," explains Kniaz.
Reports from Cin7 show that inaccurate supply chain and inventory levels cause $1.1 trillion in loss globally annually. Automated inventory replenishment, Kniaz says, is essential for keeping up with market demand and maintaining customer satisfaction. "Most small-to-medium businesses (SMBs) begin with tracking inventory through spreadsheets. However, spreadsheets are prone to human error, don’t provide enough high-level insights into inventory data, and eventually become inefficient as inventory and demand expands," he continues.
Automated inventory systems give businesses the opportunity to track, record and analyze inventory movements, including monitored sales performance across the supply chain. Kniaz says these tools provide visibility into stock levels, connections to additional sales channels and reorder processes, allowing businesses to improve their supply chain and ensuring they do not lose money through either overstock or stocking out.
Additionally, these tools enable better forecasting and demand planning for supply chain resilience in the uncertain landscape of today — especially this fall, with the impending U.S. election, weather challenges and continued geopolitical tension.
Inventory management is a necessity all year round but taking precautions through automation and enhancements now could equal profit gains that extend long past the peak season.
