View Single Post
Old 20th July 2005, 09:25 AM   #1

Join Date: Apr 2005
Posts: 2
Default Stock Control and the Cost of Doing things Wrong

Over the years of creating stock control software solutions for clients, we found that too many small businesses were not using adequate inventory management tools, either keeping a tally of all their stock in their heads or using inefficient paper based systems, leaving a mess of paper trails everywhere, confounding the inventory control process.

Inevitably, we found that these potential clients were desperately looking for a business tool to manage their inventory, preferably before they reached the critical point where inventory management was taking over the valuable time that could be spent working on building the business.

More and more small business owners approached us for a solution, but were not prepared to pay for the premium products we, or any of our competitors, offered because of the bottom line cost.

Even the argument that improper stock control leads to higher costs (the cost of doing things wrong!), would not persuade them to purchase, much to their own detriment.

Some of our potential clients were in the situation where their Inventory had taken over their storage and office space, with no knowledge of where an individual stock item might be, other than a general location where it should be, but things would move, disappear, reappear or be completely lost.

Mislaid stock is mislaid capital, and keeping your bottom line healthy means knowing where all your cashflow and capital is. Stock costing thousands is capital tied into the business, but these business owners could not see the potential of cost savings through stock management software costing hundreds of pounds.

A few hundred pounds purchasing the correct tools is thousands of pounds saved when your inadequate inventory management is sucking up your capital.

There are stock control programs out on the net for mere tens of dollars like this one or just search on or for stock control programs, and more than likely there'll be one to fit your business.

If you want to save costs, just make sure it fits the 80/20 rule to compare each product against another - if it does 80% of what you require for 20% of the cost of the next best product, then your initial ROI is much greater. This formula works better when comparing the cost of having a bespoke system compared to an off-the-shelf package.

When your business expands and grows, then you can re-evaluate the business tools you have, re-evaluate your budget and compare your potential software tools at a later date, for its a simple fact that most small businesses trying to gain momentum require every dollar that it can muster.

highcontrol is offline   Reply With Quote
Register or log in to remove this ad.