Whatever the size of your retail operation — one shop or a large international multi-channel enterprise — efficient inventory management is essential to your business’s supply chain.
Controlling your stock levels via inventory management helps you prevent disappointing consumers due to shortages or overstocking. But it might be difficult to keep tabs on and manage a lot of stock if it’s being kept in a number of different warehouses. One approach for stores to maintain tabs on what’s being sold, received, and replenished is to centralize their stock.
Let’s examine the concept of centralizing inventory and the advantages it may bring to your organization to help you decide whether it’s the correct step for you.
Inventory Modifications And Product Relocation
Each warehouse makes modifications to its stock in real time so that it can keep up with its activities. The firm’s operations may be affected, but with centralized inventory management, the company can keep things running smoothly despite the changes. If your firm has many warehouses and there ever comes a time when you need to move products between them due to a lack of inventory or for other, internal or external causes, you can do it with ease thanks to centralized administration and reliable lines of communication and data. Odoo accommodates both with powerful management jargon.
Budget-Friendly
Having all of your merchandise in one place might help you save money in your retail store. Reduce the time and energy needed to execute business activities like order fulfillment and inventory reporting by improving the accuracy of your data and the efficiency of your operations.
In addition, precise information allows for more educated business choices, which may help cut down on wasteful missteps. Out of stocks, excess inventory, and refunds cost retailers $1.75 trillion yearly. It would be foolish to pass up the chance to enhance sales, especially when studies have shown a 50% increase in earnings from a better inventory management app. However, in 2017, worldwide merchants lost $100 billion due to shrinkage.
Security
Controlling security in today’s digital era is crucial. Managers are responsible for implementing necessary security measures to protect the privacy of employees’ sensitive information kept in the company’s database. When compared to a system in which several warehouses work independently, a centralized warehouse’s superior security protocols may be attributed to the fact that a single person is in charge of most decisions and actions thanks to a centralized system and database.
Operational Efficiency
One of the primary advantages that individuals who switch to a centralized inventory hope to gain is an increase in their level of operational efficiency.
On the other hand, there is the possibility that it will improve productivity in traditional settings. Having your stock in a centralized area ensures that all of your staff, as well as yourself, are seeing the same information. There are no inconsistencies or differences of opinion on the inventory data among the various people’s perspectives. When this is the case, everyone in your company will have access to the same information and be able to base their judgments on that.
The fact that everyone is viewing the same data makes it possible to communicate more effectively. You may save time by not having to bring someone into the loop or explain the material to them since they have had the opportunity to do it on their own.
Boost the Number of Sales
In addition to boosting sales via happier customers, a centralized inventory system may identify your best-selling items. Dispersed stock makes it more difficult to evaluate how well one product is doing in comparison to others; a centralized system simplifies this task.
Knowing your best sellers can help you advertise to your audience more precisely and ensure you always have enough of your best sellers on hand to meet demand.