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Ineffective inventory management can cost your business time and money. Even some of the most prominent companies have suffered the consequences of poor planning and inefficient inventory management. Nike, for example, lost millions of dollars in sales in the early 2000s due to a lack of inventory control. Fortunately, such inventory mistakes can be avoided with effective planning and management. Once you know more about common inventory blunders, you can take steps to prevent them and save your business time and money. Take a look at some of the most frequent inventory mistakes you should try to avoid.
#1: Failing to plan ahead
Inaccurate forecasting was partly to blame for Nike’s infamous inventory errors. The company’s inventory management software failed to accurately predict which products their customers would buy. As a result, Nike’s factories overproduced some products and underproduced others, leading to unhappy customers and poor sales. To avoid a similar mistake, make sure you plan ahead and continuously track your inventory, whether you use an automated software or a manual tracking system. By getting a clearer picture of which products are in demand and selling the most, you can accurately plan for the future and ensure you don’t run out of inventory.
#2: Overselling inventory in an e-commerce store
Managing a physical store and an e-commerce store can feel like a juggling act. Many retailers run into the problem of selling the last product available to two different customers – one online and one in their physical store. It’s never ideal to tell a customer that you cannot ship their item because it’s out of stock. This problem can create unhappy customers and even lose sales for your business. Prevent this dilemma by using an inventory system that updates your online store anytime someone buys something from your physical store.
#3: Having unqualified employees manage inventory control
Depending on your business, inventory may be one of the largest assets on your balance sheet. You want to be sure you can trust those in charge of managing inventory to oversee the operations and prevent expensive mistakes. If your in-house employees aren’t fully trained or experienced in inventory control and management, outsourcing these tasks may be a more cost-effective solution. Collaborating with an experienced warehousing and fulfillment partner like Ohio Valley Goodwill’s Industrial Services Division can help your business improve inventory management efficiency and reduce the risk of costly inventory errors.
Ohio Valley Goodwill’s Industrial Services Division specializes in helping businesses in Greater Cincinnati, Northern Kentucky, and Southeast Indiana grow while streamlining operations and lowering overhead costs. Our large-scale workforce is driven by human intelligence, which allows our team to provide greater flexibility and quick turnaround on projects. When partnering with Ohio Valley Goodwill, your business will also become a part of Goodwill’s larger social mission to change lives through the power of work. The Industrial Services Division is a truly unique opportunity for local businesses to support Goodwill’s mission and provide meaningful employment to individuals with disabilities.
Are you ready to start improving inventory management for your company through outsourcing? Contact our Industrial Services Division today to see what we can do for your business and receive a free tour of our facilities.