One of your most important concerns should be keeping inventory under control as a business owner. You are responsible for every product that leaves the warehouse, so it’s up to you to keep them in stock. When stocking up on inventory, you should always have a plan in place for what you are going to do with it. If you over-stock your products by ordering more than what is needed, it can become wasteful and costly.
On the other hand, if you underestimate how much inventory is needed for production and orders by not ordering enough, you risk running out of stock or running into unexpected problems with orders. So how does one avoid these pitfalls? Here are some ways to get your company’s inventory under control.
Why Is Inventory Important?
Inventory is important because it can help you avoid problems. Problems with inventory are typically either too much or too little. When you have too much of something, it can become wasteful; you also risk trying to sell your products at a lower price than they are worth due to the excess inventory.
Likewise, when you don’t have enough of something, you could face issues with orders that need to be fulfilled. It’s hard to estimate how many orders will come in each day or week, so it can be challenging to know whether or not your current inventory will be adequate for production needs.
To avoid these pitfalls, it’s essential to keep your inventory under control by ordering just enough of what is needed. This will allow you to avoid overproducing and wasting money while also avoiding running out of stock or underproducing and disappointing customers who were looking forward to their product being delivered on time and in the right quantities.
What Is Third-Party Logistics?
Third-party logistics (3PL) refers to a company that specializes in the storage and distribution of goods. This can include warehousing, transportation, and packaging. Houston 3PL companies are often used by businesses to handle their inventory as well as all their other supply chain needs.
How 3PL Assists With Inventory Management
One way to get your company’s inventory under control is by using third-party logistics (3PL) to manage it for you. 3PL companies provide a variety of services to businesses to help them with inventory management. It can be beneficial, for example, if your company does not have the ability to store large quantities of products or you are too busy handling other tasks.
You also don’t want to spend money on warehouses or staff that you don’t need. A 3PL provides these services for you while managing your inventory in an efficient manner. With that in mind, when looking for Houston, TX 3PL companies, head over to SCHC for expert advice on how they can help you solve your inventory management problems.
How 3PL Provide Better Order Fulfillment
The 3PL company provides a level of professionalism and organization that would not be possible if you were handling order fulfillment on your own. For example, if their warehouse ran out of a specific product because they underestimated how much was needed, the 3PL company would notify them as soon as that happened so that orders could be changed or rerouted accordingly. This prevents any customers from receiving an order without the product they wanted. Red Stag’s 3PL solutions include returns management to further streamline the fulfillment process. In addition, 3PL companies offer more expertise and resources, which means they can solve problems more quickly and efficiently than you can on your own.