5 Clear Signs It’s Time to Upgrade Your Inventory Systems
You live. You learn. You upgrade.
To those who have found success in the distribution space, few words ring truer. There is no perfect formula or infallible equation for success when it comes to scaling an operation— there simply isn’t. There are, however, tools that can act as reliable facilitators of otherwise chaotic processes. These tools are vital for long-term scalability and success especially when they concern the management of inventories.
In an evolving world of commerce, we are arriving at a point where we can say that effective inventory management requires stable technologies— meaning they are able to adjust to the winds of the future, seamlessly. Inventory management processes or technologies that lack this stability can significantly impact overall productivity which is why transitioning to the appropriate 3PL solutions at the right time is critical. When caught up in the day-to-day of it all, it can be difficult to see the forest for the trees, but we have compiled a shortlist of signs your organization may be in need of an inventory systems upgrade.
1. Lack of Flexibility and Visibility is Causing Process Issues
Distribution climates have a tendency to change often and rapidly. Demand is never constant. Competition is ever-evolving. Performance isn’t always predictable. Failure to track and see these dynamic variables while making adjustments will cause problems almost immediately. If your current processes seem sound but aren’t delivering consistent results, it is likely that inventory management is to blame.
2. Solutions Are Antiquated; Inadequately Mobile
Integration is a word that carries more meaning now than ever before. The ability for technology to speak to and collaborate with people and systems is becoming a standard that can no longer be ignored. If your current solutions aren’t seamlessly communicating one with another, creating a workable flow throughout your entire warehouse, the solutions are outdated and it is time for a change. Another piece to that same puzzle is mobility. Gone are the days where full access can’t be had on smartphones and tablets.
3. Productive Data is Difficult to Rescue
Data is needed for key insights in an evolving market. The management of margins, tracking of buyer behaviors, and the improvement of your bottom line all hinge on numbers that revolve around inventory and transaction metrics. If these numbers are difficult to gather, there is likely a flaw in one or more processes that could be easily corrected with a flexible 3PL solution.
4. High Employee Turnover/Dissatisfaction
Ineffective processes place undue loads on the shoulders of employees. Distribution does not need to be difficult or confusing, but when it is, morale suffers. This confusion and these difficulties almost always begin with inventory management.
5. Revenue Plateaus
When there are inventory setbacks, other woes typically follow such as quality control issues, backorders, and cashflow problems. These bottlenecks reduce the capacity of the entire chain, stalling production and impacting revenues for the worse. If growth seems unexplainably hindered, your inventory systems are likely a contributing factor.
Stability Starts With Your Supply Chain Partner
Sifting through a mountain of solutions and providers can seem both daunting and counterproductive. However, taking the time to find the right 3PL partner can catalyze growth in a number of ways. For those looking to create efficiencies, reduce human error, stay compliant, improve employee morale, and Increase revenues Sequoia Group can provide the stable distribution management solutions you need. If you would like to learn more about how we can help you grow your operation, contact us at 801.571.2300 today.