This article continues our series on software tools for your business.
Why Track Inventory?
The reasons for monitoring stock movements are numerous. First and foremost: you need to know what you have. https://it-ebs.co.uk/news/stocktake-how-to-guide/ Confidence in your warehouse inventory allows you to fulfill customer orders promptly. Without stock, you can’t sell—and lost sales mean customers turn to competitors, often permanently.
The Cost of Running Out
Tracking inventory isn’t just about current stock. Without accurate depletion records, you won’t know when items are running low. This matters because supplier lead times and product preparation (modification or assembly) create delays. By the time you discover a stockout, you’ve lost not only existing orders but all potential sales during the replenishment period—a far costlier problem than the initial shortage.
Setting Minimum Order Levels
Every item needs a minimum order level (https://it-ebs.co.uk/news/how-to-get-just-in-time-deliveries-for-inventory-part-2/) tailored to its specific supplier reliability, demand patterns, and preparation complexity. A blanket policy (e.g., 50 units) rarely works, especially with thousands of products used in complex builds.
Set it too high? You tie up cash in slow-moving stock—risking a liquidity crisis if credit dries up or unexpected bills arrive. Set it too low? You’re back to stockouts and haphazard ordering.
Like Goldilocks, it needs to be just right.
How Software Helps
Our system analyses stock levels via an intelligent wizard that flags items below their minimum thresholds. It then auto-generates bulk purchase orders to default suppliers, ensuring just-in-time availability (https://it-ebs.co.uk/news/wms-how-to-use-minimum-stock-levels-to-your-advantage/ without excess). Automated reminders also prompt follow-up calls when deliveries are due.