Knowing the real time stock availability across the channels of your organization leads to lucrative profit

Excess inventory is an issue faced by most of the SME s due to non-visibility of stock on real time, but retailers & distributors have some other unique challenges not as common at other businesses.

Based on a research

  • Over 60% of the customers were willing to seek another retailer if a brand isn’t able to offer their preferred products fulfillment.
  • 2/3rd of the customers reported that they are less likely to buy from retailers who are unable to confirm product availability.
  • Studies have shown that the annual additional cost of holding excess inventory can be 25% to 32% of gross margin.

This results in lower operating profits. When there is no real time inventory visibility, you may hold more inventory than you need, but cannot identify the availability or SKU of the products when it’s needed for sales.

Your Income Statement suffers in two ways,

  1.  Lower gross margin due to lack of effective conversion of potential prospects to customers&
  2. Increased Operating Expenses for additional space, labor to manage, excess investment on the stock and taxes.

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