Inventory management is often handled manually or with outdated software in some businesses, that lead to an inefficient operational system, inaccurate planning and reporting, resulting in a set back and potentially have detrimental effects. These five common inventory management problems are often overlooked,
Accessibility and visibility issues
A good inventory management system would be able to locate where a particular item is stored with the click of a button. Additionally, the warehouse should have sufficient and organized space for each group of items to be visible and accessible. Yet, that is not always the case when inventory management is ineffective, moreover when it is handled manually.
Overstocks, understock and out of stocks
Especially when the cycle of a particular item is short, overstocking can disrupt cash flow. On the other hand, understocking leads to chaotic stock management. When the seller cannot meet demand due to being understocked, or out of stock, a disorganized restocking schedule is not just frustrating but also becomes a potential loss.
Loss of inventory
Another big problem is inventory losses caused by theft, damage, spoilage, obsolete, and so on; this supply chain issue requires the ability of a system to properly pinpoint, track, and measure the problem and blindspots in the area, swiftly and accurately.
Multi-Platform Process Errors
It is the age of multi-platform sales, whether between online platforms or between online and offline. On online platforms, sales, regardless of where they occur, should be processed in the same way, streamlined, on a first-come, first-served basis for consumers, and according to the principle of first in, first out for stock. A single dashboard that tracks sales in real-time from multi-platform is the most effective way to do this.
Miscommunication Between Units or Within a Unit
Ideally, communication between the marketing, sales, inventory and finance departments, or within a department is clear and concise. However, it is inevitable that miscommunications will occur. These miscommunications can negatively affect the performance of a department or working unit, including the inventory department. The work unit is responsible for receiving, storing, and distributing goods promptly and efficiently. By using automation as much as possible, you can reduce the chances of this human error occurring. .
Get Started with e-Agency
In addition to providing retailers with a well-organized warehouse, e-Agency also enables them to track and report their inventory in real-time using cutting-edge technology.
Tiara Nurhalida
A former marketing professional based in Indonesia. Currently an enthusiast business, sales and marketing trend observer, and writer.