Nothing sends a customer away quite like a lack of stock visibility. It’s what most frustrates young consumers, for example. If a retailer says on its website the item is in the store, it had better be. But Gen Zs and consumers aren’t the only one. B2B and B2C buyers alike expect business to provide accurate product availability, or they’ll keep shopping. In other words, a lack of inventory visibility hurts potential sales, and that’s just one part of the story.
Stock Visibility Crucial to Your Bottom Line
Aside from customer experience, a lack of stock visibility on the back-end has serious implications for business.
It costs you to buy and hold inventory, but without stock visibility, it’ll cost a lot more. Are your products on order or being assembled? Are they in your warehouse or at your store? Do you need to phase out a product or replenish? You simply can’t answer these questions if you don’t have inventory visibility. And if you can’t answer those questions, how do you know what your inventory is costing you? Enterprise supply chain managers say that kind of visibility is their top priority to contain costs and more.
Without real-time stock visibility integrated with sales processes, companies risk double selling. This is not an unusual problem, particularly for multichannel businesses using paper-based or non-integrated processes. If you have to refund or exchange a product because you’ve sold it twice in two different places, you risk losing a customer.
The cost of shrinkage to retailers in the US was reportedly $48.9 billion in 2016. While estimates show two-thirds of shrinkage resulted from shoplifting or employee theft, as much as one-third is due to mismanagement. Real-time stock visibility can help illuminate internal issues that could result in shrinkage.
Lower Holding Costs
The longer your inventory sits, the more it will cost you. Stock visibility can tell you what slow-moving products are costing you. That puts you in a position to make better decisions about what product to hold and what to phase out, which can lead to improved margins.
Adapt to Changing Markets
eCommerce hasn’t just changed the way customers shop. It has, in turn, put pressure on companies (particularly in fashion) to increase product cycles to match faster-changing customer demand. Stock visibility, of course, helps give you the insight to understand how your customers respond to your products.
Cin7 Stock Visibility
Cin7 gives you the end-to-end, real-time stock visibility to get more efficient, better margins and smarter sales. Click below to get your free trial started and tofind out how Cin7 can help your business accomplish your business goals.
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