3 Symptoms of Poor Inventory Management and How to Combat Them

Everyone knows you need inventory management, but that doesn’t necessarily make it easy to accomplish. Without a computerized inventory tracking method, it can be hard to keep track of where things are. Did you know 46% of small-to-medium businesses don’t track inventory or use manual processes, like performing visual inspections, using tick sheets, and working with spreadsheets?

These manual inventory methods could be leading to errors, lost inventory, and increased costs. We compiled a list of the top 3 symptoms businesses find themselves experiencing before they reach out to a third-party logistics provider (3PL) like BR Williams for help.

1. Feeling Overwhelmed By or Not Keeping Up With Trends

Software, hardware, and equipment are constantly changing and upgrading. If you’re not keeping up with trends, you may be missing on sales and efficiency. Working with a 3PL, you gain access to their network. Utilizing a 3PL allows you to use higher quality tools and resources you might not otherwise employ.

Among businesses surveyed in a 2019 study, 72% are investing in enterprise resource planning software to manage inventory better. A big focus for any 3PL is educating their team on the latest trends and reporting techniques for inventory management. Working with a 3PL can help your business establish more efficient management of inventory and increase on-time performance. 

2. Deteriorating Relationships With Suppliers

Losing control of your inventory can lead to one of the worst things: damaged relationships with suppliers (and potentially even your customers). If you find your business putting in extra-large orders or rush orders with your supplier, you might be risking your relationship. These significant demands can put a strain on your suppliers, which ultimately puts you in an uncomfortable position when you get down to the wire.

If you choose to work with the right 3PL, they make your problems their own. Find a 3PL that cares about your reputation. Not only can they help you protect your inventory, but they get it to your customers on time, protecting your company’s reputation. 

2. Not Planning or Forecasting

Are you feeling frustrated, because your inventory is seemingly unmanageable? Maybe you have too much inventory, and your employees are spending too much time sifting through parts. Perhaps you don’t have enough inventory and shipping late or canceling orders. Whatever the case, your lead times can start to suffer as a result.

A 3PL can offer incredible insights when it comes to forecasting. With the correct software and statistical methodologies, they gain insight into specific usage patterns and consumption. Robust software allows them to match production and deliveries with your customer demands accurately. 36% of businesses identify “the opportunity to optimize their inventory to balance supply and demand” as the top reason they adopt analytics tools.

With clear visibility of data, a 3PL can help you maintain the correct inventory and accurately forecast for the future. Forecasting avoids problems with cash flow and ensures you’re meeting product delivery time for your clients.

One of the best benefits of working with a 3PL like BR Williams are all the value-added services. Not only can a 3PL help control your inventory management, but it can also offer custom warehousing and distribution solutions, tracking, storage solutions, and more. By outsourcing your logistics services, you free up time to concentrate on the more critical aspects of your business. If you care about your inventory, contact BR Williams for custom warehousing and distribution services to protect your inventory and get it to customers on time.

Request a FREE, no-obligation quote today to see how BR Williams can help improve your supply chain.

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To discuss your Distribution, Logistics, or Transportation Services options, please contact us online or call (800) 523-7963