{"id":90611,"date":"2023-05-27T15:01:36","date_gmt":"2023-05-27T13:01:36","guid":{"rendered":"https:\/\/packhelp.com\/?p=90611"},"modified":"2024-06-24T10:34:42","modified_gmt":"2024-06-24T08:34:42","slug":"inventory-management","status":"publish","type":"post","link":"https:\/\/packhelp.com\/inventory-management\/","title":{"rendered":"5 Huge Inventory Management Mistakes That Can Cause Lost Sales"},"content":{"rendered":"<p style=\"text-align: center;\"><em>This is a guest post from\u00a0<\/em><i><span style=\"font-weight: 400;\">Jimmy Rodriguez is the COO and co-founder of 3dcart, an ecommerce software to build SEO-friendly online stores. He&#8217;s dedicated to helping internet retailers succeed online by developing digital marketing strategies and optimized shopping experiences that drive conversions and improve business performance.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Are you running a small business without much experience in inventory? Or, are you a large business looking to <a href=\"https:\/\/packhelp.com\/what-is-inventory-management\/\">restructure your inventory management<\/a>? Whatever the case, you may be experiencing a whole host of inventory control problems that are leading to lost sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may be thinking to yourself, \u201c<em>I don\u2019t have any issues with inventory management; we\u2019ve run things the same way for years!<\/em>\u201d <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unfortunately, that could be a problem in and of itself, so don\u2019t write off these mistakes so quickly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some inventory mistakes can be solved relatively easily if caught early. However, some problems can have major effects on your business and result in millions of lost sales. <strong>Issues with inventory control can hurt your business at every angle<\/strong>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This includes employee efficiency, warehouse space, customer satisfaction and retention rates. <\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">Your products are the heart of your business, so issues in inventory can bleed out and stain your entire company.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, you\u2019ll understand how:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Proper <\/span><b>forecasting of demand<\/b><span style=\"font-weight: 400;\"> can help your inventory management.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Inventory management software<\/b><span style=\"font-weight: 400;\"> can make outdated process more efficient.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Communication is key to <\/span><b>fixing customer loyalty<\/b><span style=\"font-weight: 400;\"> with your brand.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">We\u2019ll be going through some of the most common inventory management mistakes, how to solve them, and how to prevent them from ever happening again. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get started.<\/span><\/p>\n<p><a href=\"https:\/\/packhelp.com\/get-a-quote\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-66197 size-large\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-1024x506.png\" alt=\"get a quote banner with special box\" width=\"1024\" height=\"506\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1.png 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-300x148.png 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-768x380.png 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-1000x494.png 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-500x247.png 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-230x114.png 230w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<h2><span style=\"font-weight: 400;\">Mistake #1: Too Much Inventory<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It may seem like a good thing to have a warehouse full of products ready to sell to eager customers at a moment&#8217;s notice. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But it can be very much the opposite \u2013 excess inventory can cost a business big time. With too much of the wrong product in stock, your warehouse may end up filled with products that are collecting dust and costing you money. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, you may be running out of space to store products that you need to keep a constant stock of.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-65494\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-1024x683.jpg\" alt=\"huge warehouse with shelves \" width=\"1024\" height=\"683\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-1024x683.jpg 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-300x200.jpg 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-768x512.jpg 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-1000x667.jpg 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-500x333.jpg 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-765x510.jpg 765w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse-230x153.jpg 230w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/20132620\/fulfillment-company-warehouse.jpg 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">This can all spell disaster \u2013 and lost sales \u2013 for any business, big or small.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By wasting your warehouse space with products that don&#8217;t sell, you might not have room for your profitable products. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, you\u2019re met with the out-of-stock dilemma. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This can deter once-eager customers from coming back to your store when they\u2019re met with disappointment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Having too much of the wrong product occurs when a business invests heavily in stocking a trending item. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once that trend inevitably fades, you\u2019ve lost out on a huge investment and wasted space in your warehouse. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">At that point, you need to figure out how to get rid of it \u2013 which can be its own hassle.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How to Solve Excess Inventory<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">If you have too much of a product that isn\u2019t selling, try to think about ways that it can be reimagined to draw more appeal.<\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">A pair of socks that aren\u2019t selling well may do better bundled with a matching shirt.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This strategy is advantageous if the excess inventory you\u2019re dealing with is raw materials. Work with your product development team on new ideas that use your current stock to get it moving.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-20210\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-1024x683.png\" alt=\"happy socks\" width=\"1024\" height=\"683\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-1024x683.png 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-300x200.png 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-768x512.png 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-2000x1333.png 2000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-1000x667.png 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-500x333.png 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-765x510.png 765w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295-230x153.png 230w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2018\/07\/06154600\/P1300295.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">After you\u2019ve tried that strategy, you may still have excess inventory that won\u2019t budge.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At that point, it may come time to liquidate it or work with resellers to clear up that space for better-selling products. At the end of the day, products that aren\u2019t selling are eating up money in storage fees.<\/span><\/p>\n<p><b>How can you prevent this problem from ever happening again?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Improve your demand forecasting.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Be more conservative with stock orders.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Use historical product data to analyse what\u2019s selling and what\u2019s not.<\/span><\/li>\n<li>Set up an <a href=\"https:\/\/packhelp.com\/inventory-control-chart\/\">inventory management chart<\/a><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Mistake #2: Neglecting to Restock on Time<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are many reasons that stock can run out. We just discussed one example \u2013 lack of space for a substantial amount of stock in the first place. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The out-of-stock product could have also been a limited time product. Or, demand may have been unusually high for the inventory available.<\/span><\/p>\n<p><a href=\"https:\/\/packhelp.com\/get-a-quote\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-66197 size-large\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-1024x506.png\" alt=\"get a quote banner with special box\" width=\"1024\" height=\"506\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1.png 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-300x148.png 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-768x380.png 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-1000x494.png 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-500x247.png 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/03\/26094318\/Banner-focused-on-plus-products-eng-2-1024x506-1-230x114.png 230w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Running out of stock isn\u2019t a mistake, as it can happen to any business and can be resolved easily.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The issue comes, however, when restock doesn\u2019t happen quickly. <\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">One major mistake that businesses make is waiting too long to restock inventory or not <a href=\"https:\/\/packhelp.com\/packaging-lead-time-defintion\/\">knowing their lead times<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This can leave a large gap in time that customers will need to wait for the product they want to become available.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is especially troubling if the product in question is a staple of your store and sells out frequently. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This can leave your store with too many \u201cout of stock\u201d notices, leading customers to feel disappointed every time they visit your business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\"><strong>Disappointment is not a leading cause of return business; that\u2019s for sure.<\/strong> <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, it\u2019s one guaranteed way to ensure customers never return to your business and choose a competitor instead.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keeping the right amount of stock levels in your inventory at all times is crucial \u2013 but this is especially true <a href=\"https:\/\/packhelp.com\/ecommerce-christmas-covid\/\">when it comes to seasonal shopping<\/a>. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re not anticipating what products may be in higher demand during certain seasons, your inventory may be in big trouble. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think pool toys during the summer or tree ornaments during the winter. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you run out of these products and don\u2019t restock in time, you may be stuck selling <strong>summer toys in autumn or winter decorations in spring.<\/strong><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-90614\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2020\/11\/27141817\/image3.gif\" alt=\"mr bean in a pool\" width=\"498\" height=\"299\" \/><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">How to Solve Low Stock Levels<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">First things first, apologise to your customers for the inconvenience and <a href=\"https:\/\/packhelp.com\/thank-you-for-your-purchase\/\">thank them for their patience<\/a>. No customer enjoys visiting your store after seeing an advertisement for a product they truly want, just to be met with an \u201cout of stock\u201d notice. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Be transparent and communicate with customers on how long they can expect to wait for new stock to arrive. (We\u2019ll talk more about communication later on.)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Then, to patch up the wound, incentivize their continued business with coupons and discounts. When that item they really want comes back in stock, let them know that they can save big on it.<\/span><\/p>\n<p><b>How can you prevent this problem from ever happening again?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Put a system in place that automatically orders new stock at certain inventory levels.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Set up notifications for certain stock thresholds (if you prefer manually ordering stock).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.orderhive.com\/knowledge-center\/anticipation-inventory\">Anticipate seasonal demand<\/a> and stock hot items ahead of time to meet that.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Mistake #3: Inefficient Warehouse Organization<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Any inefficient process in your business can ultimately lead to financial loss. In regards to <\/span><a href=\"https:\/\/www.3dcart.com\/lp\/features\/inventory-control-feature\/\"><span style=\"font-weight: 400;\">inventory control<\/span><\/a><span style=\"font-weight: 400;\">, this is especially true for <a href=\"https:\/\/todoos.com\/industries-we-serve\/warehouse-and-distribution\/\">warehouse organization<\/a>. <\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">If your warehouse has products laid out in a way that isn\u2019t efficient for employees, that can lead to a whole host of problems. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Namely, this can lead to order delays and inaccurate orders \u2013 which can result in refunds and loss of business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One way that this manifests is organizing products and associated materials in places that aren\u2019t beneficial. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if <a href=\"https:\/\/packhelp.com\/packaging-supplies\/\">packaging supplies<\/a> are at one end of a warehouse and deliveries are on the other end, then the fulfilment path is inefficient.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-62695\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-1024x683.jpg\" alt=\"fulfilment packaging costs\" width=\"1024\" height=\"683\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-1024x683.jpg 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-300x200.jpg 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-768x512.jpg 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-2000x1333.jpg 2000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-1000x667.jpg 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-500x333.jpg 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-765x510.jpg 765w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/02\/27114531\/16607-230x153.jpg 230w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The employee will need to gather the products, walk to one side of the warehouse to package it, and then walk all the way to the other side to drop it off. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This effectively doubles an order\u2019s warehouse travel time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, without the <a href=\"https:\/\/www.scnsoft.com\/scm\/warehouse-management-system\">right warehouse organization<\/a>, inventory may be difficult to locate or even be lost. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your warehouse is too large for the amount of inventory you have, it can take more time than necessary for employees to fulfil orders.\u00a0<\/span><\/p>\n<p>Also ensure your staff are well trained. If they need to assemble <a href=\"https:\/\/packhelp.com\/mailer-boxes\/\">mailer boxes<\/a>, for example, they need to know the most efficient process, and at what level they&#8217;ll start to <a href=\"https:\/\/packhelp.com\/folding-boxes\/\">spend time folding packaging<\/a>.<\/p>\n<h3><span style=\"font-weight: 400;\">How to Solve a Disorganised Warehouse<\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-90613\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-1024x701.jpg\" alt=\"8 warehouse organization ideas infographic from Emerge\" width=\"1024\" height=\"701\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-1024x701.jpg 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-300x205.jpg 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-768x526.jpg 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-1000x685.jpg 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-500x342.jpg 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-745x510.jpg 745w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1-230x157.jpg 230w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141814\/image2-1.jpg 1427w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">First off, you need to start tracking your picking paths and pinpoint any detected inefficiencies. Are employees taking the same paths over and over to fulfil one order? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Is <a href=\"https:\/\/packhelp.com\/e-commerce-fulfillment-company\/\">each step of the fulfilment process<\/a> spread out too far, making warehouse travel times artificially long? Do employees get confused on where products or materials are located?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you understand where the worst inefficiency offenders lie, the work begins. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Focus on rearranging your warehouse or stockroom to eliminate any repetition or hiccups in the process. <strong>You may find it necessary to downsize your warehouse space<\/strong> to make the picking and packing process faster.<\/span><\/p>\n<p><b>How can you prevent this problem from ever happening again?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Use <a href=\"https:\/\/optimoroute.com\/warehouse-management\/\">warehouse management<\/a> software to keep employees organised on picking paths.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Clearly label sections of your warehouse to keep employees from getting lost.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Organise your warehouse like an assembly line so that each step is organised.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Mistake #4: Lack of Quality Communication<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Communication is vital for any good business \u2013 both internally and externally.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Businesses often make the mistake of not facilitating effective communication between departments. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example,<strong> when your business is having a sale or promotion, you need the right amount of stock to meet that demand. <\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the marketing department doesn\u2019t make the inventory department aware of a new sale, then they may not have the necessary stock available. <\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">Without the right stock level, your big sale product can sell out faster than you intended.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Every relevant employee needs a strong form of communication, so nothing gets lost, and processes stay efficient.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All inventory needs to be accounted for \u2013 <a href=\"https:\/\/packhelp.com\/product-boxes\/\">even product packaging<\/a><\/span><span style=\"font-weight: 400;\">. If something gets misplaced, that could spell a huge financial loss for a small business.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-40911\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-1024x724.jpg\" alt=\"printed product boxes with socks\" width=\"1024\" height=\"724\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-1024x724.jpg 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-300x212.jpg 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-768x543.jpg 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-1000x707.jpg 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-500x353.jpg 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-721x510.jpg 721w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain-230x163.jpg 230w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2019\/07\/06152200\/moco-disain.jpg 1754w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">External communication relates to poor inventory management, as well. You must communicate with your customers clearly and regularly regarding your stock levels. <\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">When a customer comes to your site for a product and finds that it\u2019s unavailable, they want to know when it\u2019ll be back. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">And, when a product is running low, that fact needs to be clearly stated on the product page directly. Not only can this make your business more transparent, but it can also instil a sense of urgency. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Without this information, customers will have no idea how much stock you have left of a product.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How to Solve Bad Communication<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s never too late to start communicating more transparently and effectively. First, clear up any existing miscommunication errors that need to be addressed immediately.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Internally, this could mean sending out messages to entire departments, making them aware of any sales or changes. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If it\u2019s something that your employees should know about and contribute to, keep them all on the same page.<\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">Externally, it\u2019s a good idea to inform your customers that you\u2019re aware of any issues that may have occurred during fulfilment. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apologise and let them know how you intend to resolve the issue. You can even turn the situation around in your favour. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, if you have a product out of stock with loads of hype surrounding its return, use that to your advantage. Create a marketing campaign with a countdown for when it\u2019ll be back on your (<a href=\"https:\/\/packhelp.com\/brick-and-mortar-and-e-commerce-businesses\/\">physical or virtual<\/a>) store shelves.<\/span><\/p>\n<p><b>How can you prevent this problem from ever happening again?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Look for the right team communication solution that fits your business needs.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Use software to help streamline employee-to-customer communication.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Automate customer messaging to not leave any customers out of the loop.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Mistake #5: Not Using Updated Software<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While manual data entry and electronic spreadsheets may have been your tried-and-true for years, it\u2019s time for an upgrade. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your business is still using outdated forms of inventory management, you may be losing money in errors.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-13521\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-1024x683.jpg\" alt=\"packhelp_blog_post_marketing\" width=\"1024\" height=\"683\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-1024x683.jpg 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-300x200.jpg 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-768x512.jpg 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-2000x1333.jpg 2000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-1000x667.jpg 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-500x333.jpg 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-765x510.jpg 765w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash-230x153.jpg 230w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2017\/10\/06154311\/ewan-robertson-208022-unsplash.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In fact, a <\/span><a href=\"https:\/\/mba.tuck.dartmouth.edu\/spreadsheet\/product_pubs_files\/Impact.pdf\"><span style=\"font-weight: 400;\">study of spreadsheet errors<\/span><\/a><span style=\"font-weight: 400;\"> found that just seven errors caused losses of up to $110 million.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your training should be updated too. <\/span><\/p>\n<p class=\"leading-thought\"><span style=\"font-weight: 400;\">If you\u2019re manually training every new recruit with ancient methods, it\u2019s likely taking you more than double the time it should have them working.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If your <a href=\"https:\/\/www.g2.com\/categories\/e-commerce-platforms\">eCommerce platform<\/a> isn\u2019t sending data to your distributors, then data may get lost in translation. Orders may end up not being fulfilled, stock levels may turn up inaccurate, and money can be lost in the process. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Worst of all, if your data is backed up on physical drives, rather than in the cloud, there\u2019s a large chance that your data can be damaged without recovery.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the end of the day, <strong>excess errors and unreliable data organization equal profit loss<\/strong>. Anything you can do to eliminate as many errors as possible will help you to regain any lost sales.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How to Solve Out-of-Date Software<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Before you make any changes, you\u2019ll want to perform an audit to find out how your data management currently performs. Look into how your data is organised, where it\u2019s stored, and what processes are in place to locate\/enter\/organise data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Next, pinpoint any parts of your current <\/span><a href=\"https:\/\/blog.3dcart.com\/how-to-increase-sales-with-the-right-inventory-management\"><span style=\"font-weight: 400;\">inventory management<\/span><\/a><span style=\"font-weight: 400;\"> process that are done manually \u2013 and don\u2019t need to be. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Automate where possible to eliminate manual errors and speed things up. If you need new software, investigate the best available inventory management solutions.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-90616\" src=\"https:\/\/static.cdn.packhelp.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-1024x791.png\" alt=\"5 best free inventory management solutions from Capterra.\" width=\"1024\" height=\"791\" srcset=\"https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-1024x791.png 1024w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-300x232.png 300w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-768x594.png 768w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-1000x773.png 1000w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-500x386.png 500w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-660x510.png 660w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5-230x178.png 230w, https:\/\/packhelp-landing-assets.s3.eu-central-1.amazonaws.com\/wp-content\/uploads\/2020\/11\/27141827\/image5.png 1999w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, if you\u2019re using any software that has a more updated version available, look into the benefits and drawbacks of updating to that software. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">More often than not, a new update will add tons of new functionality that you never knew you needed.<\/span><\/p>\n<p><b>How can you prevent this problem from ever happening again?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Research software that may improve your data organization and inventory accuracy.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ensure that ALL necessary employees are properly trained in using any new software.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Keep track of any resulting improvements from the upgrade and make necessary adjustments.\u00a0<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It should be clear, at this point, that it\u2019s not hard to make mistakes in regards to inventory. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Luckily, there are several ways to remedy an inventory control problem. Whether you\u2019re starting your first business or restructuring your current one, keep in mind these inventory mistakes:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Excess inventory can lead to wasted inventory space and loss of investment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Low stock levels without quick restocks can deter return business.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A disorganised warehouse can kill picking path efficiency and extend order fulfilment time.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bad communication with employees and customers can create confusion and frustration.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Out-of-date processes and software can cost your business money in data errors.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Did you recognize any mistakes that your business is making while reading this article? Let us know down below!<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This is a guest post from\u00a0Jimmy Rodriguez is the COO and co-founder of 3dcart, an ecommerce software to build SEO-friendly online stores. He&#8217;s dedicated to helping internet retailers succeed online by developing digital marketing strategies and optimized shopping experiences that drive conversions and improve business performance. Are you running a small business without much experience [&hellip;]<\/p>\n","protected":false},"author":35,"featured_media":90612,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9297],"tags":[],"acf":[],"lang":"en","translations":{"en":90611,"gb":90640,"en-us":206985},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/posts\/90611"}],"collection":[{"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/users\/35"}],"replies":[{"embeddable":true,"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/comments?post=90611"}],"version-history":[{"count":0,"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/posts\/90611\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/media\/90612"}],"wp:attachment":[{"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/media?parent=90611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/categories?post=90611"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/packhelp.com\/wp-json\/wp\/v2\/tags?post=90611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}