Inventory Management: The Art of Doing More with Less

You’ve heard the phrase used by retailers: Get more for less. I would like to suggest an even better phrase for businesses: Do more with less. Inventory management is all about doing more with less, e.g. making better use of resources, saving money and increasing your inventory turnover ratio. Let’s talk about each of these in detail to show how small businesses can benefit from using inventory management software.

Father and daughter fishing, Fishbowl BlogMaking Better Use of Resources

Businesses have a certain amount of capital to work with. The better they can use that capital, the more opportunities they can find to grow. Keeping too much inventory on hand ties up capital and keeps companies from investing in more employees, new locations, innovative products and other things that could lead to more success.

Saving Money

Inventory management software helps companies run more efficiently and eliminate wasteful spending and redundancies. Employees’ time is freed up to spend on improving customer service and other important tasks when they don’t have to spend hours updating an outdated inventory management system.

Increasing Inventory Turnover Ratio

Businesses should have a high inventory turnover ratio. The inventory turnover ratio is the number of times in a year that a company sells all of the products in its warehouse(s). The reason businesses want this ratio to be high is because it means their products aren’t sitting idly for months on end, waiting to be sold. Idle inventory doesn’t do them any good.

Using inventory management software, companies can increase their inventory turnover ratio. The important thing is to find a balance between too much and too little inventory. If companies can manage to keep enough inventory in stock to meet demand without going overboard, then they’ll see their turnover ratio increase and their financial health improve.

Good inventory management lets businesses do more with less. See how your company can grow faster by using your resources more wisely by signing up for an inventory software demo.

Advertisements

About Robert Lockard

Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks and small business. Fishbowl Inventory is the #1-requested inventory management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies. His favorite movies include Mr. Smith Goes to Washington, Fiddler on the Roof, Back to the Future and Lawrence of Arabia.
This entry was posted in Inventory Management and tagged , , , , , , , , , , , . Bookmark the permalink.

One Response to Inventory Management: The Art of Doing More with Less

  1. It’s true that Fishbowl is great, but it’s not for everyone. I started using a software that integrates with QuickBooks called Rapid Inventory. Works well for us so far and is cheap — we pay monthly. Works a little differently than Fishbowl too — is a good alternative to FB if you find it’s not for you.

    Either way — the article is right. Using an inventory management software absolutely changes the way your business works for the better.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s