A half-dozen U.S. companies identified inventory management as a key factor in their improved earnings during the first quarter of 2010. These companies include Dillard’s, Inc., Polo Ralph Lauren Corp., Macy’s Inc., Kohl’s Corp., Telular Corp. and Whole Foods Market, Inc.
A recent report from Ralph Lauren said “disciplined inventory management … led to reduced markdowns in our retail stores.” Kevin Mansell, CEO of Kohl’s, said “We improved our merchandise margins significantly through strong inventory management.”
The other four companies made similar statements, citing improved inventory management as one of the most important factors in their positive quarterly results.
The rise in inventory-management use among large companies is part of a larger trend toward cost-cutting measures. To stay competitive during the recession, companies have looked for creative ways to run more efficiently while reducing their expenses.
One of the fastest and most cost-effective ways to improve a company’s inventory system is to use inventory management software. Large companies, such as Macy’s, Dillard’s and Ralph Lauren, often use inventory management software because they have multiple locations and thousands of products to keep track of. Inventory management can get complicated under those circumstances without the aid of an automated system.
Small businesses can also benefit from inventory management software. No matter how big or small a company’s inventory is, it can still be better managed using software, which helps companies save money and avoid having too many or too few products on hand.
Fishbowl is the most-popular QuickBooks inventory management solution. QuickBooks users can stay with the accounting software they are familiar with and enjoy new inventory-tracking features because Fishbowl Inventory fully integrates with QuickBooks.