Understanding your clientele and embracing any challenges that may come with managing your inventory can help you overcome them, head-on. Prioritizing and perfecting your management strategy—from your customers to your inventory—is one of the primary challenges facing businesses.
With inventory management, you can encounter challenges like:
- A lack of knowledge—before you decide to invest, make sure that you or your company acquires full visibility of your inventory—always. Recording stock, replenishing stock, and keeping track of the quantity and order of sizes is crucial.
- Outdated inventory management systems—take the time to research more up-to-date operating procedures and consider implementing new software in your business to help you manage better. This software can help be aware of your inventory, expenses, revenue, and locations.
- Flexibility and demand—the needs of your customer and target audience are constantly changing—which means you have to flexible with demand and never stop learning and adapting your management strategy.
You can overcome these inventory challenges by accurately tracking, gathering all encompassing data in a centralized location—and consistently backing it up (in more than one place). You should also consider multi-location warehouses and even outsourcing your management service if it’s too much to handle with your workload.
What about obsolete inventory?
Excess or obsolete inventory is a common issue, as well—and can be caused by a misalignment in policymaking, mistakes, and miscalculations.
To help you avoid these issues, make sure you’re allocating accountability—your role as a manager should cover the responsibility to divide these roles (and oversee it) among other employees.
To predict, expect or plan for obsolete inventory to happen can help eliminate surprises and help your company perfect an action plan.
To avoid obsolete inventory, evaluate important business decisions and offer in-house incentives to help improve sales accuracy and drive accountability.
And slow-moving assets?
By placing an estimate on the life cycle of specific inventory, you can better plan and keep track of that particular inventory to help avoid slow-moving assets. However, sometimes this is inevitable.
If you notice your assets are taking up space, tying up your capital, and slowing down your business, here are a few ways to help turn that inventory over and get it into a profitable state:
- Improve your in-place marketing strategies. Simply by addressing possible marketing vs. target audience issues, you can help reel in potential buyers.
- Combine different sales tactics. Whether you’releaning toward a discount or different types of sales, this reduction in price and sense of urgency can also help generate sales.
- Regular, periodical inventory tracking can help you avoid a reduction in sales. If you have the resources, consider trying to predict or forecast your clientele demand.
What Can Exodus Do for You?
Exodus can help your company with valuations, pool agreements, and maximize profits on slow-turning inventory.
We use our own proprietary AI solution, developed in-house and optimized to benefit your company. This software analyzes firsthand data, along with third party data, to predict supply and demand, price fluctuations on components, and so much more.