Recently, shoe retail chain DSW attributed its earnings growth in part to improved inventory. When you must get products fast to market wherever your customers shop, the key ingredient to your supply chain is managing inventory.
Businesses have to contend with a lot of moving parts. To stay competitive, they seek to increase sales, getting products fast to market. However, they can’t afford to carry too much of a product or their costs will eat their revenue. So, they must simultaneously optimize inventory. Meanwhile, they have to be ready to adapt to fast-changing markets. And they do all of this while marketing and selling across multiple channels.
Inventory Management: Knowledge and Action
Ultimately, current and comprehensive knowledge is essential to good inventory management. When you know where your products are at any given moment, what products sell best in every channel, your inventory turnover and your actual costs, you have the power to act. In other words, you can make decisions to adjust to fast changing markets. For example, phasing out slow moving products, investing in better selling products, or moving products where they are in higher demand.
Disconnected Solutions are the Problem
A common barrier to good inventory management is the disconnect between you and what happens in your supply chain. It’s not unusual for businesses to use different software to track inventory in their warehouse and in each of their channels. Similarly, they may manage purchases and production in one system, and sales orders in others. The problem is, what happens at the POS, online, in the warehouse and on the shop floor all impact the big picture. But that information easily gets buried in spreadsheets and software that don’t communicate. Consequently, business don’t have power to take action to manage their supply chain.
Integrated Inventory Management is the Answer
Businesses that can connect their purchases, sales, inventory, logistics together have the power to make their business better. That’s what Cin7 is all about. Cin7 is the cloud-based supply chain management solution that gives you the real-time information to know your business. And it gives you the automated and streamlined processes you need to take action and adjust to fast changing markets.