4 Inventory-Management Strategies that Keep Customers HappyMay 07, 2021
What is the impact of inventory management on customer satisfaction?
Did you know that one of the best ways to gain customer loyalty is by managing inventory efficiently? Back-end processes such as inventory-flow don’t always get the respect they deserve. But companies which manage inventory well are statistically proven to provide superior customer service. Business Expert Meaghan Brophy explains that “Inventory management is the process of having the right products, in ideal quantities, at the right time to sell to customers. Accurately managing inventory can increase revenue by preventing stock-outs, overstock, and surplus products. When learning how to organize inventory for small businesses, the easiest solution is to use a software program to automate the process.”
Here are a few best practices regarding inventory management:
1) Use Precise Calculations to Monitor Inventory-Levels
As long as your business sells a tangible product, it’s important to have constant awareness of inventory-levels. Calculate how many raw materials you have, as well as finished units, and be prepared to anticipate when supplies need replenishing.
2) Account for Seasonal Traffic
No matter how popular your merchandise is, customers rarely ever make purchases at a constant level of traffic. They solicit products in periodic or seasonal waves. The best way to avoid stocking up on too much/too little inventory, is to study and prepare for these waves. For example, the high demand of the holiday season usually means it’s a good idea to stock up on an excess of inventory.
3) Expedite Product-Delivery
When customers buy products on location, it’s easy to complete transactions because goods are deliverable in real-time. Online orders are another story though. The best way to keep inventory circulating is to reduce the inconvenience suffered by customers as they wait for their purchases. This is easily accomplished through perks such as free shipping.
4) Use Plenty of Storage/Warehousing:
The worst mistake to make when managing inventory is to create a shortage. Shortages interrupt the customer experience and force businesses to scramble when fulfilling orders. It’s much easier to invest in ample storage for inventory. Keeping an abundant warehouse of stored inventory guarantees that you can honor any transactional obligations.
Inventory-management helps companies perform well because it enhances consistency. More specifically, it enhances consistency with respect to the customer experience. When customers don’t have to worry about shortages with their vendors, they become comfortable transacting on a regular basis. The less uncertainty customers have about product availability, the more return-business they generate. If you like what you just read from our blog, you’ll love the various informative courses, workshops and events listed on our websites and social media. Whether you’re interested in personal development, or overall improvement of your business, give us a call at 1 (888) 823-7757 to find out how The RISE Academy can help you break past your daily struggles and start soaring in success. For business development coaching by Richard Martinez, call at 626-202-2291 or follow us on Facebook and Instagram.
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