June 22, 2022

3 Inventory Management Mistakes Every Wholesaler Or Distributor Should Avoid

Optimize Your Warehouse and Inventory-Management Processes

 

Inventory translates to cash, so proper inventory management is crucial to ensure you maximize your profits and reduce errors. To do so, you need to make sure that your entire workflow is well optimized from when a sales rep takes an order until the products are delivered to the client. 

 

There might be many manual methods to keep control of your warehouse. But the truth is that businesses that don’t use an inventory-management system have only 63% accuracy in their warehouse data. 

 

What does that 37% margin of error translate to? The loss of considerable amounts of money or even clients, due to delivery mistakes or lost inventory. Managing your warehouse through paper is not only twice as complicated, but it also may be causing crucial errors in your distribution business operations. 

 

Inventory management software can streamline your warehouse operations, cut costs, and control inventory, helping you avoid errors and saving you crucial time. Here are some other big mistakes you need to avoid while managing your inventory and warehouse, and that an inventory system can help you improve.

 

Inventory Management Mistakes

 

Not Knowing Exact Inventory Levels 

 

Not knowing your inventory stock levels means that you won’t be able to tell how much product you have in your warehouse or trucks. This leaves room for silly but expensive mistakes, such as overstocking products that might not be selling, delayed orders, and backorders.

 

Physical counting takes a lot of time and is such a tedious process that most companies do it annually. However, this might cause problems in your workflows, since regularly checking your inventory can help you notice discrepancies and minimize costs. 

 

Listaso’s Inventory Management System connects to QuickBooks inventory data for easy management of your warehouse, allowing you to have up-to-date inventory all the time.

 

Not Taking into Account the Routing of Trucks

 

The order in which your sales reps deliver the product is essential. Good route planning helps your sales reps know where they need to be at all times, ensuring that deliveries arrive on time.

 

In an industry in which the competition is constantly growing, providing excellent customer service is essential. If your products aren’t being delivered by the time your client needs them, they are very likely to find a new distributor or wholesaler. 

 

Make sure that your sales reps’ routes are well optimized, so they can meet their delivery times and provide outstanding service.

 

Not Optimizing the Picking Process

 

The way your reps move inside the warehouse is something you should take into account, especially at the moment of picking products. A well-structured picking process can help save time and have the orders loaded with the right products. 

 

An Inventory Management System like Listaso makes it easier for the warehouse reps to know in what order they need to pick each product to optimize their time and ensure accuracy.

 

In Conclusion

 

Times are changing and you need to make sure your company is well equipped to keep control of your sales and inventory. Managing inventory with paper makes it harder to optimize your workflow and increases the chance of making mistakes. 

 

Listaso is proud to have the best systems and the most updated technology, so you can effectively manage your inventory. And we are the perfect inventory app for QuickBooks users who are looking for inventory and warehouse-management functionality. 

 

Are you making any of the aforementioned mistakes? Schedule a free Demo and streamline your warehouse management!

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