Knowing when to stock up and when to cut back is critical to small business success. When operating on a strict budget, it's essential that inventory levels are scaled to accurately reflect consumer demand. But in order for managers to determine how much of a particular item to order, they also need the proper analytical tools to make the call. While these decisions may have relied on simple spreadsheets in the past, it's time for companies to upgrade to more foolproof tools.
Inventory software should be considered a critical asset at any organization with a need to handle stock. With this technology, leaders can determine which items are most popular and which aren't selling as quickly, reducing waste and ensuring that the most necessary products are available to customers. In addition, using inventory management software means executives can use data to make more educated choices. For instance, when economic conditions show major changes, more or less inventory can be ordered to maximize bottom lines.
According to the 2013 U.S. Bank Small Business Annual Survey, leaders of smaller companies differ in their opinions of whether the American economy is improving or not. Among the 3,210 organizations polled, 45 percent said they believe the financial environment to be in recovery, while 43 percent think it is still in recession.
"These results are very consistent with what we're hearing in the field," said John Elmore, vice chairman of community banking and branch delivery at U.S. Bank. "Last year, 70 percent of our respondents said they believed the economy was in recession, so even though we asked the question a little differently this year, it's clear that small business owners feel a little better about current economic conditions than they did in 2012."
Additionally, 67 percent of respondents described the financial health of their business as good, very good or excellent, while only 33 percent claimed it was fair to poor. Nearly half - 41 percent - of decision-makers anticipate that their revenues will have increased by the same time in 2014, with another 47 percent expecting these indicators to remain stable.
In a survey by PNC Bank, 58 percent of small business owners polled were optimistic about the U.S. economy as a whole. A healthy 71 percent felt the same about their local economies.
Inventory technology can have a major impact on an organization's success. With the ability to efficiently manage stock, enterprises can ensure customers are getting what they want and that their firms are making the most of their budgets.