4 Reasons to Use Inventory Optimization Tools
The happier you make customers, the more likely they are to come back. A key component of making customers happy is giving them what they want, when they want it. That starts with inventory, and the right inventory optimization tools can make all the difference between repeat business and a “one and done” customer experience that kills sales. Here’s why:
1 – Improved Slotting
Inventory optimization makes things better right away by tracking the products that ship most often. This way, these products will be on hand and ready to ship. With the software’s data, you can designate the storage slots nearest the shipping docks for the hot products. On-hand products that are set to ship make for happier customers and you end up wasting less time hunting around for products when unexpected demand hits. Inventory optimization software helps prevent that unexpected demand—and also lets you know purchase patterns that should help predict future spikes in demand.
2 – Better Communication
One of the biggest downfalls of many manufacturing companies is the lack of a single, robust resource to provide all relevant information about the production process. By utilizing the latest software in the inventory optimization industry, it is now possible to track progress of production and shipments from multiple locations, partners and outside sources. This collection of data will serve to reduce cycle time between when products are ordered and when they ship out because it will be easy to see any issues in production and resolve them quickly without stalling the rest of the product. Being able to notify your customers of any inventory issues that arise will have a positive impact on overall customer satisfaction.
3 – Accurate Product Availability Information
Giving customers a rough guess about availability is another problem that plagues manufacturers. But with inventory optimization software, you’ll have help in predicting and managing re-order dates for components, finished goods information and more. This way, the availability timeline for the customer is accurate and much less of a guesstimate.
And when you automate portions of the ordering protocol, you’ll lower the chances that components and materials are missed. In many cases, human error can lead to situations where a single piece of the puzzle is short, requiring the vendor to expedite shipment, costing your company more.
4 – Reducing Waste
Often, companies rely on individual feel about when to restock. While experience and intuition count, they don’t deliver the consistent, reliable restocking information you need. Shortages on one side and overstocking on another obviously cost money, time and space—and that’s what “feel” can lead to. But software relies on reality, tracking patterns that let you know what to restock and when, all based on previous patterns. This means customers wait less and your costs remain flat as you cut down on wasted time and overstocking the wrong products.