Imagine a scenario where you have a large order to deliver but before delivery you discover that you do not have enough stock. For a general trading company, no matter how big, this is a nightmarish situation. You will get a bad reputation for failing to deliver on time and even worse you can lose clients. Then there are times when you have the necessary stock but your delivery system is not very efficient. Both incidents are damaging for business as they lead to monetary loss and sometimes loss of clients. Clients today expect smooth, on time delivery at home or at the workplace. Therefore you need to improve on both stocks/ inventory maintenance and product delivery, if you want to be successful.
Improve stock management
Monitoring- if your inventory level is really high, it will add to your expenses and as a result overhead costs will increase. If it becomes low you will have trouble doing business. Regular monitoring can help avoid both situations. Figure out the stock demands of the business and cut back on items that don’t sell.
Lead time- it takes a certain amount of time to order items that are out of stock. This is known as lead time. It varies from supplier to supplier. You need to develop a clear idea about your supplier’s lead time and manage your business accordingly.
Use modern software/ App- for efficient and accurate inventory management, use database or inventory management software. Software developers can fit the software to suit your specific business needs.
Better Delivery system
- You must make the inner workings of your company simple. Utilize latest software, develop communication between people who handle orders and those who run the warehouse/ storage. This way an item can be on its way to delivery without much delay.
- Sometimes for delivery in places far from your operation base, you will have to rely on third party agencies and courier services. Build a network of reliable, reputed couriers who can deliver the order in time.
- Introduce order tracking both for the office and the customer.
- Inform the customer as soon as you have a clear idea about when the order will be delivered.