Any company with inventory knows that having the right inventory management system is the most important part of bringing profits to a business. Inventory management refers to the process of ordering, storing, using, and selling a company’s inventory; It includes the management of raw materials, components, and finished products, as well as the warehousing and processing of such items.
During COVID, most businesses in the healthcare industry, retail, etc.. suffered to meet the demand in the market. Below we’ve listed five advantages of outsourcing your inventory management.
The number one advantage of an Inventory control management system is that it will help you save money a great deal from day one. Apart from saving time outsourcing your inventory saves you on labor, storage space, and hidden costs such as electricity, maintenance, water, and security. On average small businesses use $10,000 – $50,000 on establishing a warehouse team to track inventory. Large companies spend from $50,000 to $250,000 per year.
Advanced inventory management software
District Moving warehouses use warehouse management systems that include state-of-the-art RFID systems. You may be able to view your stock on hand in real-time and get reporting to help you set reorder points and safety stock levels. Our client dashboard puts all the information you need to manage your orders and inventory at your fingertips.
Reduced inventory costs
Outsourced inventory management will cost you money for warehousing and storage fees. However, you may find the expense is more than offset by lower inventory costs. Here are just some of the ways you can save money:
- Flexible storage reduces your overhead.
- Reducing or eliminating shrinkage will increase your profitability.
- Inventory management software can give you the data you need to improve your supply chain management and reduce costs.
- When you set optimal stock levels, you avoid having too much inventory and too much money tied up in stock, so you have more resources to focus on business growth.
We’ve seen businesses increase their profits and expand their business by outsourcing their inventory management. That’s thanks to the money they save due to reduced shrinkage. We are always ready to extend a helping hand with inventory management—or anything else you need to improve your business.