{"id":7295,"date":"2021-01-07T06:00:00","date_gmt":"2021-01-07T14:00:00","guid":{"rendered":"https:\/\/www.rangeme.com\/blog\/?p=7295"},"modified":"2021-10-06T15:03:21","modified_gmt":"2021-10-06T23:03:21","slug":"the-importance-of-inventory-management-for-brands","status":"publish","type":"post","link":"https:\/\/www.rangeme.com\/blog\/the-importance-of-inventory-management-for-brands\/","title":{"rendered":"The Importance of Inventory Management for Emerging Brands"},"content":{"rendered":"\n

As with many successful CPG brands, a great product starts with a great idea. From there, the idea blossoms into a plan, and the plan grows into a reality, and before you know it, you\u2019re living the CPG dream and your product is on store shelves across the country, or even the world. Consumers clamor for your product! Buyers can\u2019t get you in their stores fast enough! And you, Mr. or Ms. Supplier, are thrilled to the bone, as you should be!<\/p>\n\n\n\n

But before we get ahead of ourselves, let\u2019s take a step back and look at one of the most important factors to this ideal success: Inventory.<\/p>\n\n\n\n

To state the obvious, you can\u2019t sell what you don\u2019t have. If you don\u2019t have enough product to meet demand, you run the risk of damaging the relationships with consumers and retailers you spent countless hours building and tending to. Not having enough product when it\u2019s needed can be avoided, provided your strategy for success involves a strong inventory management process.<\/p>\n\n\n\n

What does that mean, exactly? Inventory management is essentially everything that revolves around your inventory, from ingredients and supplies to packaging and the finished product. That also includes ordering those supplies, storing them, processing them, and using them. Sounds pretty straightforward, right?<\/p>\n\n\n\n

Yes and no. When done right, inventory management can set your business up for sustainable success, and without it, your business will flail mightily. Think of it this way: when you over- or under-purchase inventory, that has a direct effect on your bottom line (re: your profits). But there\u2019s more to it than just making sure you\u2019ve ordered enough or have enough on hand. Read on to find out other key points around inventory management that will help your brand.<\/p>\n\n\n\n

Plan, track, review, repeat<\/strong><\/h2>\n\n\n\n

When starting your inventory management, it\u2019s important to remember that this doesn\u2019t happen solely in one department. Nope, you need to make sure your entire organization understands how you\u2019re planning and tracking your inventory. Marketing, ecommerce, merchandising\u2014they all work with inventory, and thus, they all should be aware of how it\u2019s tracked, so everyone is on the same page and you\u2019re not hit with a sudden need for inventory you don\u2019t have on hand, or conversely, left with overstock you have no use for.<\/p>\n\n\n\n

There are multiple ways you can track your inventory. Investing in software that can help track is often a great tool to have, as it can help you see where you are in real time. But to ensure the software\u2019s efficiency, there are three critical actions suppliers need to do:<\/p>\n\n\n\n

  1. Audit your stock on a regular basis. Meaning, go into your warehouse, and count what you have on hand, and make sure it matches what your software is telling you.<\/li>
  2. Know which of your stock you can barely, well, keep in stock, and which stock tends to languish in your warehouse. If there is something that isn\u2019t selling, perhaps it\u2019s time to rethink whether you need that product taking up valuable space in your system.<\/li>
  3. Forecast a lot. The more you can accurately forecast your sales, the better you can forecast your inventory needs. Past performance can be a crucial indicator of what you\u2019ll need and when, but as critical is taking a look at current issues (re: are we still in a pandemic?) that could affect how your inventory flows.<\/li><\/ol>\n\n\n\n

    The important thing to remember, whether you want to hear this or not, is that inventory management is not a one-and-done deal. As your brand thrives and grows, and as you evaluate where your product plays best, where it can improve, and where there are opportunities, you will need to continually manage your inventory. Even smoothly running inventory management will need readjusting from time to time, simply because your business isn\u2019t going to stand still\u2014and neither will your inventory.<\/p>\n\n\n\n

    The benefits of inventory management<\/strong><\/h2>\n\n\n\n

    You may be thinking, \u201cHey, we\u2019re a small business. I don\u2019t really need this complex inventory management system. I\u2019ve got a handle on it.\u201d And maybe that\u2019s true. But honestly? No business is too small to employ a comprehensive inventory management process. And particularly if you want to grow your small business into a bigger brand, that inevitably means increased stock, and the opportunity for your inventory to get to a level that you can\u2019t handle without a plan increases as well.<\/p>\n\n\n\n

    As well, there are myriad other benefits to an inventory management strategy, including:<\/p>\n\n\n\n

    • Saving money- when you are managing your inventory, you\u2019re not buying too much or too little, which can affect your bottom line.<\/li>
    • Better relationships with your customers- when you can easily, quickly, and accurately<\/em> fulfill their orders, they\u2019ll keep coming back for more, because they know you\u2019re reliable.<\/li>
    • Improved overall planning- when you keep track of your inventory, you know immediately if you have enough to fulfill an order, and there\u2019s less of a chance that stock that isn\u2019t selling is taking up valuable real estate in your supply.<\/li><\/ul>\n\n\n\n

      You can\u2019t have a CPG business without inventory, and while a good inventory management system can take time and tweaking to incorporate and get right, once done, the payoff can be great. Taking the necessary steps to set up a management system that works for you will help your business for long-term, sustainable success.<\/p>\n\n\n\n

      \"inventory<\/figure>\n","protected":false},"excerpt":{"rendered":"

      Read on to learn the key points of inventory management that can set your business up for sustainable success.<\/p>\n","protected":false},"author":11,"featured_media":7310,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[2584],"tags":[1766,1763,1419,1759,1758,1764,857,1760,1761,30,1762,1765,436],"class_list":["post-7295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-best-practices","tag-benefits-of-inventory-management","tag-forecast-inventory","tag-growing-brands","tag-how-to-improve-your-inventory-management-skills","tag-inventory","tag-inventory-forecasting","tag-inventory-management","tag-inventory-tracking","tag-managing-stock","tag-rangeme","tag-stock","tag-stock-audit","tag-suppliers"],"yoast_head":"\nThe Importance of Inventory Management for Emerging Brands - 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