Avoid Hidden Costs and Save Big!

by / Thursday, 23 March 2017 / Published in Inventory Management

Don’t let hidden costs eat away your bottom line!

Baking is a science in many ways: you measure out ingredients, stir them together in specific combinations, and they then react, creating delicious goodies.

Online Inventory Management SystemImagine leaving out flour in a recipe for cookies! While it’s just a careless mistake, not only are the cookies ruined, but you’re also left with a pile of wasted ingredients.

While most people won’t forget to leave the flour out of cookies, there is a similar mistake often made in inventory management. Though the direct cost of goods is calculated, there are a number of hidden costs that are not calculated.

These indirect expenses can include: landed costs (cost of moving goods between locations), packaging, administration and customer service, shortage costs, and carrying costs.

It’s critical that these indirect expenses are accounted for and minimized as much as possible. Don’t forget to put the flour in your inventory cost calculations!

One way this can be done is by investing in an online inventory management system. This system allows you to easily track and access inventory information in a way that makes hidden costs visible and simple to manage.

Online Inventory Management Increases the Reliability of Your System’s Data

Figuring out your hidden costs is easier said than done. You need a system in place that’s capable of showing you all aspects of your business from a single online dashboard.

Here’s how an online inventory management system can help you find and account for hidden costs that are pulling your profit down. Basically it comes down to having a single space with multiple access points. Let’s explain:

By creating a single online space in which all relevant data and software are uniformly kept, cloud-based systems allow for all system material to be neatly consolidated. This means less data slowing down your physical computers and less risk of losing data.

Simultaneously, a cloud-based inventory management system improves the accessibility of your data. Rather than being tied to a physical software system, your inventory management system will be stored online. This allows for multiple access points. Different members of your company in different locations can store, share, and access material that extends beyond what their single system possesses. For this reason, cloud-based systems allow for better collaboration within your company and faster, more convenient access to needed information.

Since your data is more consolidated and accessible, you can start tracking the hidden costs. Your inventory management system becomes more reliable and provides better data for you to use.

You have the relevant data right in front of you in one application. You don’t have to work with your inventory by hand, going row by row on a cumbersome spreadsheet. You can even predict trends to take a proactive approach to ordering.

If your company hasn’t yet switched to an online system for inventory management, consider the benefits that cloud technology could bring your company. Reliant offers the best, most reliable cloud-based online inventory systems in the industry; they will propel your business’s inventory management forward with cutting-edge technology and efficiency.

Don’t let hidden costs drag your bottom line down. Use these techniques to find out your real inventory expenses.

Related Tags: Online Inventory Management System | Inventory Management Services


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