Inventory Reduction Strategies for Small Businesses
Manufacturers and retailers alike can benefit from creating an inventory reduction strategy. Strict inventory control helps small businesses succeed, but it also requires accurate reporting. Successful inventory management depends on accurate data. With software and support from Pioneer B1 you’ll get the real-time data and performance metrics you need to control your inventory.
Creating an Inventory Reduction Strategy
Far too many small businesses struggle because they have invested too much of their capital in their inventory. Overpurchasing and overproducing lead to significant problems. Every small business needs an order cycle strategy based on strong sales forecasting, adequate safety stock, and accurate lead times. With precise inventory data you’ll always know exactly what’s on hand, what’s on order, and how much you can expect to sell.
Strong Sales Forecasting
Predict sales more accurately with a data-driven forecasting strategy. Forecasting demand by comparing historic data and performance metrics ensures that you always have the right amount of inventory on hand. Accurate data helps you track seasonal spikes, compare sales to previous years, and spot current trends. Strong sales forecasting helps you establish minimum stock policies, ensure adequate safety stock, and prevent over-ordering.
Accurate Lead Times
Ensure that you have the necessary products on hand at the right time with accurate lead times. ERP software helps you eliminate bottlenecks and improve your supply chain performance. Accurate lead times are especially important when stocking perishable goods or raw materials. You can simplify lot tracking, expiry tracking, and batch traceability with SAP Business One.
Precise Inventory Data
Working with precise data ensures better SKU segmentation and superior inventory control. Accurate data gives you real-time visibility so you can optimize your inventory and target improvements or stock reductions. Many small businesses suffer from fragmented data because they have not integrated their reporting systems. ERP software from Pioneer B1 helps you collect and share information across all departments.
Control Your Inventory with SAP Business One
Securing accurate data is the best inventory reduction strategy. Control every aspect of your inventory and enhance your competitive edge with ERP software and support from Pioneer B1. Track purchasing, manufacturing, fulfillment, shipping, accounting, expiry dates and more! Call (602) 888-2100 or send a message to email@example.com to request your free demo today.