Choosing where and how to spend money can be critical for small businesses. Some things simply have to be cut due to budgets. However, when it comes to tracking inventory, investing in inventory management software is worth it. It will pay for itself in a number of ways. Here are a few reasons you want to make this investment.
Win the War of Inventory Shrinkage
In a single year, retailers can lose a substantial amount of capital due to administrative error, internal theft and many unknown causes. Internal theft typically averages out at about one-third of all inventory shrink. Administrative errors are close to 20 percent. An inventory management software program can provide tracking features to help reduce shrinkage.
Theft and Fraud
Employees often get away with fraud or theft when there isn’t an effective system in place for protection. An employee often thinks they can get away with stealing money. Some feel like they can justify stealing because their need is great. Companies can implement inventory management software to help prevent some theft by letting you track where items are, how many of each item is in stock and who last had access to them.
More Effective Forecasting
Assets are another type of capital for a business owner. Sometimes capital is in a liquid format; other times it’s in physical assets. There are times when extra inventory is necessary for a sale or event. Other times, it’s important to free up space in the warehouse so you can invest in other areas. It’s crucial to know what you have on hand and how much you really need to store. Inventory management software protects you from over-purchasing and under-purchasing, saving you money in the long run.
Resource Box: Do you need help selecting and implementing an inventory management software system? Visit the Business Name website for assistance from a pro.