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Business owners and operators face increased operational demands as the holiday season and year-end approach. This busy time often includes increased sales, elevated customer service needs, year-end financial closeouts, New Year planning and office holiday celebrations — not to mention the many personal commitments that come up during this season.
Effective inventory and spend management are critical to maintaining operational efficiency and productivity while ensuring customer satisfaction. Streamlining these processes enables businesses to allocate resources effectively, focus on core growth objectives and meet key performance targets for the year.
'Inventorying' your inventory management
Procuring products from suppliers at the right time is essential for maintaining efficient operations and managing cash flow. Proactive inventory planning helps businesses avoid last-minute disruptions, keeps operations running smoothly and ensures they're ready to meet customer demand.
It's a good practice to follow year-round, and Walmart Business's research reveals it's a priority for business owners and operators nationwide.
Earlier this year, we commissioned industry research firm Morning Consult to survey 500 U.S. business owners and operators on their supply management practices. The research revealed that most anticipate their supply needs at least one month in advance, and 80% maintain an inventory that lasts 1-3 months or longer.
Anticipating supply needs and strategic inventory management help businesses operate effectively. Well-managed inventory contributes to streamlined workflows, allowing teams to focus on meeting customer needs without constant interruptions to restock or search for necessary materials.
However, businesses must be wary of overstocking inventory. While keeping products on hand ensures availability when needed, it often results in higher storage costs and the risk of spoilage for certain items. It also ties up valuable capital that the business could otherwise invest in serving customers and growing the business.
That's why it's important to work with suppliers who can help minimize some pressure by providing quick, flexible and seamless fulfillment options that allow businesses to choose how, when and where they receive orders, including delivery and pickup. Additionally, utilizing tools like automated inventory systems enables organizations to track supplies and reorder automatically, ensuring they have what they need when they need it.
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Streamlining and scrutinizing spend
While effective inventory management is crucial, managing expenses is equally important to ensure smooth operations through year-end. Many organizations face increased costs during this period—whether due to hiring seasonal help, paying year-end taxes, issuing bonuses or making capital expenditures.
Small businesses must carefully balance these expenses while maintaining cash reserves for the upcoming year. Overspending on supplies or making unnecessary purchases strains cash flow and hinders the ability to meet obligations or invest in growth opportunities. Business owners and operators must ensure they spend every dollar wisely to maintain liquidity as the year closes and a new one begins.
The first step is to conduct a thorough review of all current expenditures to identify areas of overspending or unnecessary costs. Implementing a clear budgeting process allows organizations to allocate funds more effectively and track expenses against established targets. Businesses should seek out suppliers that can offer affordable prices on the products they need and solutions, such as expense tracking software and other tools, that can provide real-time insights into spending patterns and help automate purchase approvals while monitoring essential expenditures.
Related: 5 Powerful Ways to Streamline Your Work Processes with AI
Encouraging financial awareness across the team will further strengthen cost control efforts. Offering basic training on cost-effective decision-making or including employees in periodic department-level budget reviews helps build a culture of financial awareness and accountability. By involving team members in these efforts, businesses can achieve better cost management and stay within budget. Teaming up with a supplier who offers seamless, user-friendly platforms can encourage a collective effort toward achieving the business's financial goals, freeing up time for everyone to focus on what matters most.
The year-end rush doesn't have to be a daunting period. Prioritizing inventory, evaluating spend and cultivating financial accountability can help businesses effectively navigate the hustle and bustle of the holiday season. By working with flexible suppliers, employing solutions that provide valuable data and promoting a collective effort towards financial goals, businesses can ensure necessary supplies are on hand, maintain a healthy cash flow and seize potential savings. When backed by a supportive supplier, this approach not only allows teams to concentrate on their core responsibilities but also frees up time to celebrate the holiday season with friends and family.
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