As a business grows, the challenges of stock management also increase, and this is a very important point for all aspects of a company. The lack of suitable software for stock management can cause much damage to a company, such as:
- Less organization in the warehouse
Without a fluid system to help keep track of stocks, the warehouse can become a disorganized space that is difficult to manage effectively. This can lead to difficulties in locating products, wasted time, and errors in logistics operations.
Inefficient stock control can cause products to disappear. It is necessary to realize that losses are inevitable, however, with stock control software, it is possible to reduce this event. In addition, a lack of proper traceability can result in significant losses due to obsolete products, expiry dates, or damage.
- Decreased employee productivity
Managing stock manually takes up a lot of employees' working time, which decreases their productivity. A stock management system helps free up labor for other activities, allowing employees to focus on more strategic and value-added tasks.
- Negative consequences on the product life cycle
Poor stock management hurts the value that the company itself generates. A company's goods are its assets, so not having good stock control means risking the product life cycle.
- Inability to control stock
Without access to real-time information, it is impossible to know how or where stock is moving. Thus, there is a higher risk of losing and keeping old stock.
- Shipping and delivery delays
When there is no efficient stock control, a company is more likely to run out of stock and thus increase delivery times, which can lead to customer disappointment. Lack of visibility of available stock can result in unfulfilled delivery promises and negatively impact a company's reputation.
Without stock management, you invest in items that will not benefit your business. Lack of visibility and control of stock levels can lead to excessive or inappropriate purchases, resulting in unnecessary storage costs, obsolescence, and wasted resources.
- Ineffective decision making
Without the resources to analyze stock trends, there is no data for managers to make predictions and decisions with confidence. With software that enables stock management, valuable insights can be gained into stock performance, customer needs, and seasonal patterns, allowing for more informed and strategic decision-making.
- Conflicting relationships between supplier and customer
The less effort the customer has with order processing, the more satisfied they will be. By ensuring that orders are processed correctly, you avoid potential conflicts and increase customer loyalty.
Notably, choosing the right stock management software can help avoid these risks.
Microsoft Dynamics 365 Business Central is a comprehensive solution that can optimize stock management as well as allow you to manage other areas, namely finance, sales, services, production, and human resources.
Want to avoid all these risks? Get in touch with Hydra iT!
