Challenges in Implementing an Inventory Management System
If you run a business, especially in a competitive region like the UK, you need to stay ahead of the competition. One of the most effective ways of doing that is improving your customer support approach; the easier it is for customers to buy, the easier it is to make sales. Ensuring that your business has a strong and effective inventory management system in place, then, is vital. Such systems ensure you avoid over-selling products or running out of stock on your best-sellers.
Inventory management allows your business to maximise profits whilst minimising risk. However, when trying to implement your inventory management system, it is likely that you will run into some problems along the way. Some of the most common inventory management problems you run into can be easily resolved. Here are some of the most common issues you might face when implementing your new inventory management platform. Focus on these issues as a priority, as they are likely the most common roadblocks you face when trying to get this system up and running.
The Common Challenges Faces When Implementing Inventory Management Systems
Cross-Referencing Delays
One of the most typical issues you might face when investing in automated inventory management systems, like those installed by BlueHub, is cross-referencing. Your current manual system has to be implemented into your new automated ERP system – this takes time, effort, and commitment. There is always the risk that data might be misrepresented or inputted incorrectly during migration.
This can be easily resolved, thankfully. It simply requires a little more time and effort invested by your team as you implement the data. If possible, use a professional service to install your inventory management system; they can help ensure that all migrations are accurate.
The last thing you need is inaccurate information and data being implemented into your new inventory management platform!
Stock Control
One of the biggest problems that businesses face when implementing inventory management is stock control. It is easy to have misplaced stock data; overstocking and understocking become easy mistakes when implementing your system. For example, your new system might auto-order inventory you do not need as stock data is incorrect.
You should ensure that you have taken the time with your team to detail all stock accurately. This is one of the most time-consuming aspects, but knowing the exact numbers of stock you have for each item is paramount to success. This can avoid needless overstocking of items and stop the new inventory management platform from auto-ordering what you do not need.
As you migrate to a new inventory management system, make sure that you thoroughly check every piece of information on the stock levels you currently have.
Demand Forecasting Errors
Like the above, demand forecasting is one of the most common problems with modern inventory management migration. Automated inventory management systems like ERPs are designed to ensure stock can be automatically ordered to meet demand. However, while you go through the migration process, you might have a typically low-selling product enjoying a spike in interest.
Your inventory management system might read this as a top seller and automatically order an excessive amount of new stock for that product. Ensuring that your demand forecasts are accurate means that your inventory management system gets off on the right foot and avoids misordering.
This is often a problem that is spotted after the fact. Still, a little bit of extra detailing and focus before the initial setup of your inventory management platform can be enough to avoid this and thus avoid costing your company money on overstocking products that were briefly a hot topic on the market.
Stock Tracking
Stock tracking is one of the most common problems when migrating from one inventory management platform to another. With a real-time inventory management system, you know where your stock is at all times; with a manual system, you might not have that information available. During the migration, it is easy for stock to get lost in the ether and not get counted.
Not only can this lead to needless overstocking when you already have enough volume present, but it can also lead to problems knowing exactly what your business has to sell. If you have not committed to stringent inventory monitoring beforehand, it would be wise to get a physical count of all stock before you move to a new inventory management system. This can avoid these typical early problems.
Technological Adaptation and Training
Implementing a new inventory management system requires not just technological change but a cultural shift within the organization. Successful adaptation hinges on comprehensive training programs tailored to different user levels, ensuring that every team member, from warehouse staff to top management, is proficient in using the new system. Incorporating interactive learning, real-world simulations, and ongoing support can dramatically reduce the learning curve and foster a positive attitude towards the new technology.
Obsolete Products
Another major issue for companies moving to a new inventory management system is the obsolescence of some products. You might be migrating because your company is making the wrong judgements on what is selling and what is not. With an automated inventory management platform, you can avoid investing in products which are not popular. When using disparate and individual stock tracking, though, it is easy to overbuy on products that are now obsolete on the market.
When demand drops for a product, it is time to move on from that product line. Bespoke and automated inventory management helps you to see this, but it is common during migration to make mistakes on what is and is not obsolete. Stock control systems can help you put in place a stock rotation method that means you can spot which products are in demand and which have come out of circulation.
Making The Correct Choice in Inventory Management
Of course, the above are just some of the most common problems you might face when investing in an inventory management platform. That is why we highly recommend that you contact BlueHub if you wish to ensure a smooth installation and migration.
Choosing the right inventory management system is a pivotal decision that can significantly influence operational efficiency and business growth. Key considerations should include the system’s scalability to grow with your business, its integration capabilities with your existing software ecosystem, and the specific features that address your unique challenges. Consulting with stakeholders and conducting a thorough market comparison will help identify a platform that not only meets your current needs but is also poised to adapt to future demands.
We have years of experience implementing inventory management platforms from scratch and migrating your current systems into the new platform. This can help you spot problems with your product selection and stock ordering long before they become problems. With our experience and insight, we can make it much easier to safely implement inventory management systems without these problems rearing their head.
Contact us today to discuss your options and find out how you can simplify implementing such systems without the common problems associated with the migration.