As I write this on November 28th, it’s clear that the holiday season has already started – at least for shoppers, and consequently for retailers and their suppliers. In the U.S., Thanksgiving and Black Friday officially kick of the start off this season of consumer frenzy.
For many businesses, the holiday season can be a bittersweet experience; on the positive side, there’s a substantial spike in revenue, but on the other side this can cause more than a few logistical headaches. The holiday season can make or break a business. The good news is that small businesses are likely to see a 4% increase in sales this year (2012). But that’s only good news to you if you’re positioned to take advantage.
If you’re not prepared for the increased demand, you’ll have to turn away customers. There can be a rather fine line during the November/December months between carrying too much inventory (risk: being left with dead inventory after the season), and not carrying enough (and therefore losing sales and customers). This risk is more pronounced for business that rely on manual processes and use poor inventory/accounting systems. Companies that tend to get the inventory levels just about right are typically using appropriate, well implemented distribution inventory software.
It is at a time like this that any cracks in the inventory management system become very clear, as revenue and customers fall through those cracks. On the other hand, if you’ve proactively put proper systems in place that will allow you to capitalize on the increased demand that the holiday season brings – and save money in the process!
It’s little late to implement new wholesale inventory software for this season. However, it can always be added to your wish list to have in place by next season. As a business owner, would you appreciate a gift that helps your business to serve more customers, and give them better service, while keeping costs down and increasing revenue? Or would you still prefer those striped ties and funky socks?