Burlington Coat Factory Warehouse Corp. improved its financial stability thanks to improvements in its inventory management system.
In the news release, “Fitch Affirms Burlington Coat Factory’s IDRs at ‘B-‘; Outlook Stable,” it says, “BCF’s operating margins have strengthened as a result of fewer markdowns due to better inventory management.”
Burlington Coat Factory is a discount retailer, but even discounters can’t afford to cut prices too low. Excess inventory always has a downward effect on prices, often forcing companies to take a loss on expensive products in order to make room for new ones.
Inventory management software is essential for all types of companies. It helps them keep their inventories at healthy levels to avoid supply problems.
If companies are able to keep the correct number of products on hand so that they don’t run out or have too many then they have a better chance of earning an appropriate amount of money on each product sale. It’s the law of supply and demand in action.
Small businesses should take advantage of inventory barcode software to effectively track their inventory movements and levels. Learn more about how Fishbowl – the most-popular inventory management solution among QuickBooks users – can help your small business by clicking the above link.