It's not uncommon for a small business owner to feel as if they don’t need a parts inventory system. It’s not the size of the company, however, that determines the need for a parts inventory system – it’s the complexity of the company.
Does your company rely on multiple spreadsheets, lists, and systems to function? Are you finding it harder and harder to keep them organized? If so, it's time to consider getting a parts inventory system.
Here are some signs that you need to do it as soon as possible:
Sales Are Good but Profits Aren't
Improperly managed inventory is expensive and no matter how much you’re selling, wasting the money on improperly managed inventory means that your profits will never get better, even if your sales get better. Learn to manage your inventory properly, and your profits will rise in correlation with your sales.You Backorder Items Too Often
If you don’t keep your inventory well balanced, your supply may not meet customer demand. This means that when customers make orders, you have to tell them that you don’t have that item in stock right now but you’ll get it to them as soon as possible. People don’t like to wait for shipping anymore – Amazon.com has spoiled them. Learn to accurately balance your inventory with customer demand and you won’t have orders that can’t be fulfilled piling up.You Are Using Disparate Software Systems
Having two or more software systems that aren’t integrated usually means that data must be transferred from one system to the other by people, which is an error prone and time consuming process. If you get a parts inventory system that integrates with your other software, your inventory management will be both more accurate and more efficient.You Manage Inventories in Several Locations
If your business sells tools and you have hammers in more than one location, maintaining a balanced inventory will be more difficult because you can’t see all of your items at once, making it harder to judge what you have and what you need to order. In addition, having hammers in more than one location will eventually require moving hammers from one location to the other, leaving you open to inaccurate counts and misplaced inventory. Getting a parts inventory system and letting it combine your inventory locations makes your inventory items easier to track and harder to lose.You Don’t Know How Much to Order
Your vendor gives a discount when you buy in bulk, but you aren’t sure if overstocking is worth the discount. A parts inventory system with an accurate inventory count will give you the answer you need.You're Losing Customers
Do you lose customers because your items are often backordered? Or because you aren’t sure if the items are in stock when they call to place an order? This type of poor customer service is caused because you don’t know enough about your inventory. A parts inventory system will help you improve your inventory skills, which will in turn keep your customers happy and keep your sales and profits going up. Do you recognize these problems in your business? If these problems are happening to you, it’s because you need a parts inventory system. Contact Acumen to discuss finding the right one for you. For more information regarding inventory, click here.
FAQ
What determines whether a business needs a parts inventory system?
Complexity rather than size; relying on multiple spreadsheets, lists and systems that are hard to keep organized is a key sign.
Why can sales be good but profits not?
Money wasted on improperly managed inventory keeps profits flat even as sales grow.
What does frequent backordering indicate?
Inventory isn't balanced with customer demand, and customers no longer like waiting for shipping.
Why are disparate software systems a problem?
Data has to be moved between them by hand, which is slow and error-prone; an integrated inventory system is more accurate and efficient.
Why do multiple inventory locations call for a system?
You can't see all items at once, making it harder to judge what to order, and moving stock between locations risks inaccurate counts and misplaced items.
