Managing inventory is a balancing act for retail businesses. The growing consumer demand for faster, freer shipping and, at times, pickup services can overwhelm you to the point where you’re too distracted to maintain your supply chain.
Our bookkeeping firm lays the ground for outsourcing inventory management in the following blog.
1. Internal Warehousing is Costly
As a cost-effective bookkeeping firm, we firmly believe in reducing expenses for our business clients. If they belong to the retail industry, warehousing is the first thing we look at, especially if they’re a small business.
While retail giants like Amazon can afford their warehouses because the profits from their sales far outweigh the loss from the sitting inventory on their warehouse shelves, a small enterprise can’t afford the hit your logistics costs will take once you add internal warehousing and distribution to it.
All of the above begs the question: instead of building the facility, why not hire it?
2. Fewer Legal Repercussions
The supply chain has taken a hit globally due to the Russian sanctions. The world may adapt to a life without fuel someday, but that day isn’t today, which means mass lay-offs for people working in warehousing and distribution, leading many to file lawsuits against their former employers.
That’s just one example of the legal repercussions you might face with an internal warehousing and distribution system. You can counter this problem by outsourcing your inventory management to a third party, effectively removing yourself from its costly risks.
3. More Time and Investable Capital
Warehousing is a time-consuming job that requires undivided attention. You can be very good at it when it has your single-minded focus. However, this would take you away from other important, not to mention potentially rewarding matters, such as:
- Brainstorming innovative ideas to grow your business.
- Building and maintaining customer retention.
- Effective digital and traditional marketing.
- Increasing incentives to improve employee retention.
- Arranging corporate events, such as award shows, cross-department games, getaways, et cetera.
4. Closer Proximity
Ensuring swifter delivery through widespread internal warehousing is only possible for retail giants. It’s much more difficult for smaller businesses to promise the same without going broke; the costs of maintaining, managing, and hiring staff alone would be unrealistically exorbitant.
However, you could promise your customers this service by outsourcing your inventory management. Such outsourcing companies have countrywide warehouses and the means to transport their contents at the ready.
Pay the outsourcing fee to focus on meeting the demand with supply. Allow our bookkeeping company to keep track of all the expenses going into production and storage, internal or external. Outsource bookkeeping for small businesses to focus on things beyond your company’s financial and logistical operations.
Get in touch with our customer representatives for inventory reporting and management queries and concerns.