Starting and growing an existing small business requires having the inventory on hand to meet customer demand. Yet balancing inventory to align to your existing supply chain capabilities is not an easy process.

Without the real-time data at hand, organizations may end up running out of stock on items or ordering too much inventory. Let us look at a few strategies that can help balance inventory numbers to match your business scale.

Mindset on Out-of-Stock Items

It is easy to assume that running out of stock on products is a great sign. However, there is a downside to this way of thinking: Statistics show that seven out of 10 people who shop online will not wait for a company to restock the item they are interested in. Instead, they will search for competitor offerings and other alternative products.

While knowing which items are in demand is a great start, your out-of-stock numbers should not be the deciding consideration. Instead, the use of inventory management software will provide you with analysis regarding your orders and purchase history.

Stock Inventory Accurately

Missing orders and having disruptions on the manufacturing floor can cripple your brand reputation. Customers will not return to a business that cannot fulfill their needs based on schedules. Customers may also write bad reviews or tell others about their experience ordering. This issue can lead to a snowball effect where fewer customers are interested in your store.

Invest in automated tracking methods to know where all materials are located in the supply web process. The moment products and raw materials arrive, tag them and use real-time tools and data to track progress. These automated tools are connected to your network and when goods are scanned, the information becomes immediately updated into the system. This method will also tell you when it was picked off the shelf and packed to complete a sales order.

Having out-of-stock materials and delays on orders can hamper your business operations. These strategies can help you keep accurate inventory numbers to meet customer demand without the inefficiencies of constantly running out or overstocking on products. Be sure to read the accompanying infographic below for more information and tips on inventory management.

Infographic created by WSI, a supply chain solutions provider