The Power of Real-Time Stock Monitoring: 5 Reasons Why it Matters

By Rise SA Team, March 29, 2024
A recent implementation of the supply chain management system led by the Rise SA team revealed that a major challenge for the customer was incorrect inventory and stock information. This issue was hindering their sales and profitability in various ways. Here are 5 key reasons why maintaining precise and up-to-date tracking of inventory and stocks is essential for retail, wholesale, e-commerce, supplier, and distribution companies.

Inventory levels are constantly in flux due to ongoing sales, returns, damages, and theft. These factors continuously impact inventory and stock levels. Despite the complexity, ensuring accurate and real-time monitoring of current inventory is a top priority for businesses operating in e-commerce, retail, wholesale, or supply.

Having an effective supply chain management system that integrates with sales channels, warehouse management, and third-party platforms can significantly assist business owners, executives, and warehouse managers in managing the challenging task of tracking inventory and stock on a daily basis.

Let's explore 5 key reasons why maintaining live and precise inventory tracking is imperative for the success of retail, wholesale, and e-commerce enterprises.

Reason 1: Maximize Sales Opportunities

Sales are the lifeblood of any business, driving its growth and success. However, as a business expands, so do its stock levels. Without a robust inventory and stock management system in place, it becomes challenging to accurately track the current inventory and stock levels.

This lack of visibility can result in missed sales opportunities, impacting profitability and overall business performance. Inadequate inventory tracking can lead to product shortages and delayed reordering when stock levels drop too low.

Effective inventory management is essential for optimizing warehouse operations and ensuring timely fulfillment of orders. Accurate data on available products allows businesses to identify fast-moving items, reorder in a timely manner, and meet customer demand.

Furthermore, monitoring low-stock items enables proactive ordering to prevent stockouts. Real-time inventory tracking enables setting minimum stock levels to avoid running out of essential products.

To fully leverage the benefits of inventory and stock tracking, businesses should invest in a comprehensive supply chain management system like Rise Business that offers advanced warehouse management capabilities:

1) Warehouse reports
2) Demand fulfillment (Inventory assignment adjustment, Inventory replenishment parameters, Order generation based on previous demand, Order supply forecast)
3) Internal inventory transfers
4) Warehouse management (Goods receipt, Goods issue, Warehouse orders)
5) Surpluses, shortages, and damage (Inventory count sheets, Warehouse movements, Inventory surplus recognition)
6) Delivery management (Vehicle management, Delivery notes)

Wanna find out more? See how Rise Business can help you keep track of your stocks in real time.

Reason 2: Enhanced Business and Financial Reporting

Maintaining real-time inventory records enables accurate and current tracking of stock balances, costs, and other essential metrics. This becomes particularly significant for financial reporting, especially for businesses using the Cost of Sale accounting method that attributes costs to each sale. Precise cost data is vital for generating Balance Sheet, Cost of Sales, Profit and Loss Statement reports, which play a crucial role in guiding business decisions for owners, executives, and management at various levels to manage company operations and forecast profitability effectively.

Reason 3: Optimize Cash Investment in Stocks

In industries such as retail, wholesale, and distribution, strategically allocating funds to procure the right quantity of stock for each product is fundamental to operational success. Overinvesting in slow-moving inventory can lead to excess stock sitting idle on shelves, tying up valuable capital. Conversely, delays in purchasing fast-selling items may result in missed revenue opportunities as customers turn to competitors for their needs.

At the end of the day, it all comes to minimizing stock balances and increasing net revenue. Learn more about the Pilot Program here.

Reason 4: Minimize Warehouse and Payroll Expenses

Controlling warehouse costs is paramount for retail and wholesale businesses to maintain profitability. Are your inventory reports accurate and up to date? Can you easily track sales history and anticipate restocking needs? Manual stock checks and tracking processes can be time-consuming and error-prone, leading to sales discrepancies and financial penalties. Investing in an integrated supply chain system with advanced warehouse management capabilities streamlines operations, reduces labor costs, and improves overall efficiency.

Reason 5: Early Detection of Warehouse and Stock Issues

Accurate inventory management enables early identification of potential problems within the warehouse operation. Detecting errors in sales order processing or stock discrepancies promptly can prevent financial losses and operational disruptions down the line. Regular reconciliation of sales and purchases, coupled with a well-maintained inventory system, helps businesses address issues proactively, ensuring smooth operations and customer satisfaction.

So, as you can see, real-time stock tracking offers numerous benefits beyond financial reporting, including improved customer satisfaction through timely communication of shipping updates and issue resolutions. Explore the Rise SA team's Pilot Program tailored for mid-level companies to learn more about optimizing inventory management practices.
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