According to DC Velocity, poor inventory management contributes to a larger loss of revenue than theft, and it’s an issue that runs rampant, as 99 percent of survey respondents reported some kind of continuous inventory problem. Moreover, 87 percent said that this was the number one cause of lost revenue, according to the news provider. As a result of poor inventory management, retailers suddenly find themselves with either too much or too little inventory, that ultimately affects their bottom line.
Getting a grip on inventory management should be a top priority for retailers, particularly those who are trying to keep costs down. According to Inflow Inventory, it’s a smart idea to calculate your minimal inventory stock level. This should be the smallest amount you want to keep on hand before re-ordering, and the equation can be adjusted when you start noticing peaks in season or growing consumer demand.