Inventory is money frozen in your business, and every mistake in it shows up directly in your profit. Here are signs it is time for a real inventory system.
1. You do not know your stock value right now
If you need a manual count to know your stock value, you are making purchasing decisions without numbers.
2. Popular items keep running out
A good system alerts you when an item reaches its reorder level, before you lose the sale.
3. Expired or slow-moving items
Item movement reports reveal slow movers early and help you clear them.
4. Balances differ between branches
Recorded stock transfers prevent loss and make each branch accountable.
5. It is hard to know the profit of each item
When inventory is connected to sales and accounts, you know the real cost and margin of every item.