Knowing your inventory level is a must. Such information helps you prevent operational failures and keep your business on the right track, in turn maintaining the desired workflow. In fact, the lack of knowledge regarding your inventory level can lead to serious consequences as follows.
What if you accidentally sell your last item to two different customers on separate channels? Obviously, one of them won’t be pleased to hear that their order is canceled.
The worst thing is they may not even come back to do business with you. This situation will be a reality if your inventory level is not well managed.
Unable to monitor your stocks makes you clueless about when they may be expired. What’s worse? Failing to grasp the information of your inventory will make it impossible for you to perform replenishment in the right time and right quantity.
This damages your budget and prevents you from efficiently managing the operating capital.
Without proper information, you cannot forecast the cash required to reinvest in your inventory. Such a failure is likely to tie up your cash flow, especially when you need money for higher volume or better products.
Thus, without needed items, it is not feasible for you to meet customers’ demand.