Using a proactive rather than reactive approach to inventory management is essential to preventing problems like inventory shortages, storage space issues, and fulfilment delays. You need to know your marketing collateral inventory is being managed proactively otherwise you could have a dissatisfied client dealing with out-of-stock items and other inventory-related problems that can affect your business reputation with your customers.
What is proactive inventory management?
Proactive inventory management means future-proofing your inventory stock. It involves proactive strategies such as forecasting and planning for anticipated sales or demand in the upcoming seasons or years. Companies can use online inventory management tools or their own proprietary software to access real-time data that can help uncover demand patterns that were previously unnoticed. This valuable data can be utilized to take charge of inventory management and plan for the next round of purchasing inventory stock proactively.
How Olivan Practices Proactive Inventory Management
Proprietary Inventory Control System
While small businesses might use spreadsheets or other manual inventory control techniques, these processes to control inventory are labour-intensive. Plus, there’s an increased risk of human error. Fortunately, advances in technology have made stock management much easier than it used to be. There’s no need to be doing this manually anymore. There’s software that does. Some companies, like Olivan, have even invested in creating their own proprietary systems based on years of experience.
Automated systems can keep track of stock levels and quickly provide an accurate picture of inventory at multiple locations. Inventory control software helps companies handle their clients’ inventory in a proactive way. It improves and simplifies tracking inventory as well as keeping track of packing and shipping information. This ultimately saves money, time, and effort.
Monitoring Inventory Trends & Data
Another way that Olivan practices proactive inventory control to save our clients money is by analyzing trends and data. This includes evaluating and planning for seasonal promotions and annual events when demand fluctuates. We use past trends to identify and prevent inventory control problems. For example, with proactive inventory management, you won’t be scrambling to fill orders because of insufficient inventory or dealing with unwanted inventory taking up valuable warehouse space. If you’ve ever experienced a problem with the amount of inventory on hand, you know the headache it can cause. Proactive inventory management helps you avoid this. Not to mention, it can improve your cash flow by limiting overspending on items you don’t need.
In addition, real-time tracking helps to cut costs further and stay informed on inventory in real time. By using real-time updates on stock movements, stock levels can be monitored automatically and alerts can be provided when stock is low and needs to be replenished. Not only does this help control costs, it makes things much easier for the person in charge of inventory.
Olivan offers real-time tracking, meaning you get up-to-date information that can inform your business decisions. For example, you can see what’s working and how much inventory you need during strategic times. These metrics can help you improve promotional planning and gain insight that allows you to stay ahead of your competition.
Optimize Your Inventory Management with Olivan’s Help
If you don’t already employ proactive inventory management techniques, or work with a company that does, you stand to lower your costs and benefit from real-time data. Moreover, a proactive inventory management system involves leveraging available technology and consistently working to enhance inventory control practices. Meanwhile, manual processes and old software hinder the growth of your business and can lead to expensive mistakes.
There’s a lot involved when it comes to determining and maintaining optimal inventory levels. You don’t want to understock or overstock. Fortunately, you don’t have to worry about it.
Save money and skip the hassle.