A new report from Forbes is shedding some light on one of the most damaging factors affecting overall U.S. gross domestic product and the bottom lines of businesses across the country. In Q1 2014, the report notes, GDP shrunk by an estimated 2.1%. Overstocked inventories contributed to 1.2% of that loss. While Q2 showed some return to form with growth of over 4%, industry insiders are worried that the lack of effective inventory control management will continue to cripple both American economic growth and the companies that fuel that growth.
In the Past, Many Understood the Value of Inventory Planning and Control
The problem, ostensibly, is that whereas in the past the majority of businesses understood that inventory controls were essential for a retail business in a service, not a goods, driven economy, that seems to have slipped a staggering number of small to medium sized businesses’ minds. Consider, according to the Office of the United States Trade Representative, 68% of U.S. GDP is built on the back of the service sector.
For retailers specializing in goods, this means fierce competition within a smaller, more insular sector of the economy. In turn, that means having to more closely monitor inventory levels, as competitive forces can either mean selling out all of your stock quickly or leaving it to rot in a warehouse; the latter, of course, is an extremely poor option, because it costs a lot of money to house that extra inventory, not to mention the opportunity it provides employees to walk off with your products (e.g. your money) in their pockets.
Can Inventory Control Programs Help Solve the Problem?
As The Small Business Strategy Group suggests, implementing top of the line inventory control management software can reduce unneeded inventory and associated costs by as much as 20%, assuming you know what to look for in the best inventory software. If you’re planning to update you current system or you’re looking for something new altogether, your inventory control management solution should be able to:
- Track inventory as it moves from place to place. This is essential for reducing lost inventory costs.
- Provide you with up-to-date data on your inventory levels, allowing you to efficiently fulfill customer orders and replenish supplies.
- Offer mobile usability. A team armed with real-time data on stocking levels, item locations, and other important information through their smartphones or tablets will be better able to help your company run like a well-oiled machine.
If the lack of inventory control management can throw the GDP of the top economy in the world into such disarray, imagine what it can do to your competitive edge and bottom line. With readily available inventory control management software, there’s really no excuse. Take the steps to better control your inventory and improve your business.
NSA Computer Exchange has been helping distribution companies implement plans and processes to improve business since 1984. If your looking for a better way to manage data, streamline efficiencies, boost productivity and grow your profits contact Patrick VanPutte, NSA President. Let our 30 years of experience and expertise in the business accelerate your success.
As a leading business software service organization for distributors, NSA Computer Exchange Corp is ready and available to help you work smarter and grow your distribution company faster, why not find out how we can help? Give us a call at 516.240.6020 or email us at firstname.lastname@example.org today.