Managing Your Business

 

09 08 2016

09 08 2016

Back to School: Ramping up for Inventory

With schools starting up around the country, retailers and other small businesses need to maximize their working capital to ensure they’re fully stocked with inventory. As waves of families embark on their back-to-school shopping excursions, not having enough inventory on the shelves can be a major missed sales opportunity for small businesses in a position to provide goods and services to this market segment.

But having the appropriate amount of goods can be a tricky balancing act. Not enough inventory can leave customers frustrated. Conversely, too much product can leave the small business overleveraged and lacking working capital. Thankfully, by implementing a few solid strategies – such as streamlining the supply chain and adopting a just-in-time inventory system – small business owners can find the solution they need to ramp up and prepare for the rush of back-to-school shoppers.

Further, the back-to-school shopping season can be busy, but it’s not as hectic as the upcoming holiday season. This means testing out these inventory strategies during the back-to-school shopping season offers up a good way to smooth out any bumps during the implementation so that they can also be used to a much greater effect during the bustling and highly lucrative end-of-the-year holiday season.

Streamline the supply chain

Eliminating any knots or hiccups in the supply chain is crucial to ensuring inventory arrives on time and at a reasonable price from the vendor. Any delays can be costly.

Thankfully, the Internet of Things – the interconnected system of real-time digital trackers, monitors and other sensors – has created an environment that allows small business owners or their warehouse managers to more effectively manage and time the shipment of their goods or inventory through the supply chain. And businesses are taking notice of the benefits. According to a recent survey of manufacturers and retailers conducted by Eyefortransport, 64 percent of respondents already have an IoT strategy in place, or they plan to implement one soon. Further, 87 percent want to expand their usage of the IoT.

With greater control over the supply chain, small business owners can better streamline orders, deliverables, vendors and other aspects of this crucial component of their operation.

Implement a just-in-time inventory system

On the one hand, a small business wants to ensure it has enough inventory to meet customer demand. However, on the other hand, ordering a big shipment of inventory requires storing all of this merchandise until it’s sold. For some small businesses, this means using warehouse space to hold all of this, which also involves additional overhead costs. This isn’t necessarily cheap either, as employees are needed to organize inventory, and warehouse utility costs can also seriously eat into profit margins.

As a way to reduce overhead warehousing costs, many small businesses are turning to just-in-time inventory methods. As noted by the Houston Chronicle’s Small Business section, JIT processes attempt to avoid a scenario wherein a business ends up with more inventory on hand than there is demand for the product.

With the rise of decentralized distribution centers and the growth of reliable overnight mailing options, there has been a reduction in delivery times for a whole range of different products, materials and goods. Best of all, a JIT inventory system means you need less warehouse space, which ultimately lowers the overhead costs associated with storing these products.

By combining an IoT strategy with a JIT inventory method, small businesses can ensure they’re running a Goldilocks operation: not too much inventory and not too little, but just enough.

Consider alternative financing

No matter how streamlined your supply chain is or how instant your just-in-time inventory system is, without access to the capital needed to purchase more products, you can still find your small business missing out on the back-to-school shopping crowd.

Thankfully there is a quick and easy solution to ramping up your inventory count. Obtaining a small business loan from an alternative lender opens up a channel to the crucial working capital necessary for buying more stock. And with approvals in a little as 24 hours, small business owners can get the funds they need immediately for replenishing any sold-out items.

Find Out How Much Funding You Qualify For

Fields marked with an * are required
By clicking this button I agree to all terms and conditions.

Terms & Conditions

General Acceptance

Any applications submitted electronically shall have the same force and effect as if the application bore an inked original signature(s). The above information, together with any accompanying financial statements, schedules, or other materials, is submitted for the purpose of obtaining credit and is warranted to be true, correct, and complete.

 

US Patriot Act:

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person and business that seeks a business loan. What this means for you: When you apply for a loan, we will ask for your business name, address, and Tax Identification Number. We will also ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

 

For Loan/Merchant Services:

The Merchant and Owner(s)/Officer(s) identified in the application (individually, an “Applicant”) each represents, acknowledges and agrees that (1) all information and documents provided to National Funding, Inc. (“NF”) including credit card processor statements are true, accurate and complete, (2) Applicant will immediately notify NF of any change in such information or financial condition, (3) Applicant authorizes NF to disclose all information and documents that NF may obtain including credit reports to other persons or entities (collectively, “Assignees”) that may be involved with or acquire commercial loans having daily repayment features and/or Merchant Cash Advance transactions, including without limitation the application therefor (collectively, “Transactions”) and each Assignee is authorized to use such information and documents, and share such information and documents with other Assignees, in connection with potential Transactions, (4) each Assignee will rely upon the accuracy and completeness of such information and documents, (5) NF, Assignees, and each of their representatives, successors, assigns and designees (collectively, “Recipients”) are authorized to request and receive any investigative reports, credit reports, statements from creditors or financial institutions, verification of information, or any other information that a Recipient deems necessary, (6) Applicant waives and releases any claims against Recipients and any information-providers arising from any act or omission relating to the requesting, receiving or release of information, and (7) each Owner/Officer represents that he or she is authorized to sign this form on behalf of Merchant.(8) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (9) this request is for business and not for consumer purposes.

 

For Equipment Services:

I hereby certify: (1) the information provided is true and correct, (2) you are hereby authorized to investigate all bank, credit, and trade references, and said references are hereby authorized to release any requested information to you or your nominee, (3) such authorization shall extend to obtaining personal credit profile in considering this application and subsequently for the purposes of update, renewal or extension of such credit or additional credit and for reviewing or collecting the resulting account, (4) this information may be transmitted by us to you and by you to underwriter(s) for the purpose of granting me credit, either electronically or manually, and that by submitting this application, I take full responsibility for transmission thereof, (5) I am over 18 years of age, (6) I acknowledge my rights under the Fair Credit Reporting Act, (7) I consent to receive direct mail, faxes, text-messages, and e-mails sent by National Funding and its affiliates for the purposes of transmitting account updates, requests for information and notices, and (8) this request is for business and not for consumer purposes.

 

Text Messaging:

By providing my wireless phone number to National Funding, Inc., I agree and acknowledge that National Funding, Inc. may send text and multimedia messages to my wireless phone number for any purpose. I agree that these text or multimedia messages may be regarding the products and/or services that I have previously purchased and products and/or services that National Funding, Inc. may market to me. I acknowledge that this consent may be removed at my request but that until such consent is revoked, I may receive text or multimedia messages from National Funding, Inc to my wireless phone number.

  
The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age (provided the applicant has the capacity to enter into the binding contract); because all or part of the applicant’s income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act. If for any reason your application for business credit is denied, you have the right to a written statement of the specific reasons for the denial. To obtain the statement, please write to National Funding Inc., 9820 Towne Centre Drive, San Diego, California 92121. Funding amount and credit approval is subject to a full credit profile review.