Business.com says leaders should understand the risks involved in poor inventory management, including labor costs, potential theft and unhappy customers. All of this can affect a business’s bottom line, with the latter having prolonged consequences due to a poor reputation.
The Small Business Chronicle reports one of the biggest reasons for poor inventory management is a lack of planning, which then causes managers to be caught off guard and overwhelmed. Additionally, you could be playing catch-up, as the news provider reports that if you’re not seeing inventory is taking a while to move, you may not have a place to store new products, ultimately affecting your receiving process as well.
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