Why Inventory Management Matters for Small Business Success

In Tips, management, Small Business

Posted On September 25, 2019

inventory management

 

It’s easy for small businesses to overlook how important inventory management is to their success. So much so, some businesses don't track their inventory at all. A survey of 1,100 small to midsized businesses revealed about 1 company in 10 doesn't oversee any part of its inventory. Many that do track inventory are incomplete or lack optimization to get the most out of it.

" Better inventory management allows small businesses to maximize excellent customer service, scheduling, and procurement. "

 

Here's how a well-stocked and maintained inventory can help your business:
schedule on your own termsRunning out of crucial materials can set projects or jobs back days or even weeks. That's enough of a reason to make sure your small business always has an eye on its inventory day after day.

More importantly, however, a full inventory allows companies to set appointments as soon as they'd like. Empty stockrooms can prevent technicians from deploying immediately, which wastes valuable time and revenue, and ultimately, lost jobs. Not to mention, a quick response rate for a much-needed installation or repair can significantly boost your customer’s service experience.

repair intelligentlyPoor inventory organization leads to damaged parts or materials. In a best-case scenario, a technician notices the damage and postpones the service call until after replenishment. At worst, a technician may accidentally use the compromised stock, which could cause costly repeat service calls, irreparable damage to the main asset, or even injury to customers.

Control over inventory means control over chaos. Small business owners should see every nut and bolt in their inventories as micro investments, all with high return potential, should they care for every piece they store.
schedule on your own terms-1Have you ever forgotten to check the refrigerator before going to the grocery store? If you do, you know how easy it is to accidentally buy something you thought you needed but already have plenty of. It’s not a disaster, but certainly a waste of money or, at the very least, a waste of time if you choose to return that extra bottle of ketchup.

 

Similarly, overspending on parts and materials can tie up a lot of small business cashflow in unnecessary purchases, which places a larger portion of capital at risk. The longer that parts and materials stay in an inventory, especially a messy one, the greater the chances of depreciation.

Instead, small businesses should invest in field service management solutions that include inventory management in order to better track the stock they buy in terms of where it is and how fast they burn through it.

  Check out the video below to see all the different ways Service Fusion field service software supports better inventory management:  

 

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