Inventory and order management, when used effectively, can be the difference between an organised and efficient business- and a poorly run one. Despite this, there are many misconceptions around order management and what it means for businesses.
We’re here to debunk the myths and straighten out the misconceptions surrounding order and inventory management, so you can really get down to understanding the benefits.
Here are our top myths of inventory and order management.
Inventory management isn’t important for small businesses
Often small business owners dismiss inventory management because they do things on a smaller scale. Small businesses often end up relying on spreadsheets to organise their inventory or plan to wait and implement an order management system later. In actual fact, inventory management is vital for businesses both large and small. Even small businesses can benefit from streamlining their order management processes and keeping better track of their stock.
In addition, planning to implement a system further down the line can be time consuming. Transferring your data once you grow can be a hassle and many small businesses end up continuously relying on spreadsheets to control large amounts of stock.
Implementing a system is too expensive
Some businesses are put off order management systems because they think it’s going to be too costly. In actual fact, an effective order management system can be a great way to save money. Often businesses end up running multiple software to fulfil their various inventory needs. Getting a system which works for you is vital. With Workhorse you can begin with the basics in inventory management, adding extensions as you grow. One system that does everything you need means you can cut the cost of running multiple systems.
Moreover, trying to organise your order management using a spreadsheet is often inefficient, and leads to delivery mistakes or stock level issues. Operating a great order management system can save you money in the long run by helping to clear the chaos.
Order management and sales forecasting are unrelated
It’s a common misconception among businesses dealing with inventory and sales forecasting- that the two aren’t interrelated. Actually, effective sales forecasting is reliant on effective order management. Sales forecasting helps businesses respond to sales patterns and avoid holding too much stock.
But sales forecasting isn’t as simple as looking at how much you sold last month. A great order management system allows you to track inventory history and identify trends, so that you can predict peak sales periods and be equipped to deal with them. Businesses with an effective inventory management system can learn more about lead times and learn how to actively prepare.
So that’s 3 common order management myths, debunked. Learn more about how an order management system can benefit your business at Workhorse.