An out-of-stock item is annoying for customers, but it’s a nightmare for retailers. Poor warehouse product management leads to lost sales and damaged reputations. Having too little inventory means risking potential sales. Too much inventory is costly, taking up space and holding up cash flow. Likewise, having a disorganized warehouse with unmarked and misplaced Gaylord boxes also leads to slow-downs in fulfillment and increases the chance for errors.
Effective inventory control ensures you can meet customer demand with minimal delay, whether you buy and sell pallets, distribute produce or ship retail goods. Inventory control services maximize profits by keeping costs to a minimum and allowing you to move a larger volume of product more quickly.
Maintaining a good inventory balance requires professional systems and planning. Inventory control services from Supply Pointe provide warehouse managers the knowledge and experience they need to keep operations functioning smoothly and efficiently.
Warehouse managers and manufacturers must understand that inventory control is critical to their business’ success. In addition to making sure items are in stock, inventory control procedures are important for these five reasons.
Proper inventory control helps production stay up and running through all phases of the process. This includes maintaining the right amounts of raw materials and packaging for your finished goods. If you don’t have enough supplies, you can’t make products to sell. If you don’t have enough packaging materials, like plastic wrap or Gaylord boxes, then you can’t send out items to distributors.
On-time delivery and in-stock items make customers happy. Product delivery should be reliable and accurate, and inventory control services help meet customer demand through organization and efficiency. Timely service allows manufacturers and managers to focus on more pressing issues.
Overstocking can be just as expensive as running out of inventory. The longer an item sits, the greater the chance that it will never sell. Storage costs mount, and you may be forced to buy and sell pallets or buy Gaylord boxes to make space for this excessive inventory. Products become outdated and obsolete; perishable goods spoil; items that linger are more likely to get damaged. All these potential outcomes of overstocking could result in huge losses for your business.
Overstock inventory also increases your payroll costs. You’ll be spending on labor each time you buy or sell pallets or Gaylord boxes are counted, moved, retrieved or stored. While this handling is added into the cost of managing inventory, profit margins are reduced with each movement. Inventory control services streamline this process, making your space and employees’ time more efficient.
When you purchase or produce inventory, you expect that you will sell or move those items soon. As Gaylord or corrugated boxes sit on shelves, your investment sits with them. Moving inventory efficiently gives you the financial flexibility to invest your money elsewhere.
Warehouse managers can avoid costly inventory issues with inventory control services from Supply Pointe. Contact us today for a free quote. In the Midwest, call (513) 403-4943, and in the Southeast, call (513) 315-6307. We also sell Gaylord boxes and buy and sell pallets. Download our tip sheet, 7 Ways to Reduce Pallet Costs.