Stay-at-home moms who sell a few dozen homemade baby products a month on eBay or Etsy can keep a tally of their small inventory by using a simple Excel spreadsheet. Their inventory management needs are not very complicated, so they can get by with an old-fashioned way of tracking their raw materials and final products. However, if you are a global manufacturing organization with thousands of inventory items to track, you will most likely crash and burn in a short amount of time if you ever attempt to use a simple approach to inventory management.
Of course, this should be an obvious observation. Different types of operations have different inventory management strategy needs, and so it makes sense that they should not count on a one-size-fits-all solution. As companies grow and their inventories increase in size and scope, they will discover that the old way of doing things can’t cut it anymore. Excel spreadsheets or notes and figures written with a pen on pieces of paper are not sophisticated enough to handle constantly changing inventory numbers.
BEING SLOW TO ADAPT = LOSS OF REVENUE
Manufacturing companies need synergy in their warehouses to smoothly process inflow and outflow. Your customers know what they want and they are not usually willing to wait very long for it. If you are out of stock of a key product that your consumer needs then it is highly likely that a competitor of yours is going to pounce on the opportunity and get their business.
If you run a grocery store and you see that customers tend to buy potato chips and diapers during the same shopping trip, you need to allocate those products accordingly. You can put them close together on the shelves in the store and in the warehouse, and you can reorder them together when you get to a low quantity on each of them. If you don’t respond swiftly to consumer demand then you risk losing out on revenue.
GENERAL’S VIEW VS. IN THE TRENCHES
When dealing with inventory on a large scale, the decision-making process cannot happen in the trenches, it needs to be done from above the battlefield through the general’s point of view. Potential bottlenecks, logistical problems, and inventory inaccuracies need to be anticipated and prepared for. You need to be able to run reports and look for trends that might be invisible or obscured to people who are on the ground.
FISHBOWL = THE GENERAL’S VIEW
Fishbowl is an advanced inventory management solution. The name “Fishbowl” comes from the concept of being able to see an object within a fishbowl from all angles. This concept translates directly into how its inventory software was created. Fishbowl allows the decision makers to view their inventory from different angles and in different contexts. This helps you to create inventory management strategies and make business decisions that are not held back by the limits of faulty data. The leaders of a business can only be as accurate as the information they have available to them. Let Fishbowl Manufacturing and Fishbowl Warehouse help you to make your business even smarter.
It’s easy to get bogged down in the trenches of inventory management tactics, but it is essential for business leaders to get a general’s view of the situation to formulate a solid inventory management strategy. Use in-depth reports and an inventory management solution to come up with a plan of attack for properly using your company’s resources.