As the stock market continues to fluctuate, companies should turn to inventory management and automated data collection software to show investors that the business is serious about improving the bottom line.
Although U.S. trading markets are on the rise, the economic conditions faced by businesses today remain stark. The S&P 500, the main index used to measure trading levels, has only just begun to reach levels seen prior to the 2008 stock market crash. Despite recent positive indicators, economic austerity measures and bearish industry outlooks in North America and Europe have severely dampened consumer spending and economic confidence over the past five years.
Nevertheless, investors are clamoring for rising returns, pushing the responsibility of publicly-traded companies to new extremes. To please stockholders, many companies have turned to budget-trimming measures to keep profit margins intact. While this strategy can yield short-term successes, it can also inhibit an organization's ability to compete once the market fully recovers.
Instead, businesses may want to implement an advanced automated data collection software solution to more effectively oversee their inventory management program. By leveraging technology, organizations can eliminate costly manual processes and better identify inefficiencies that could be affecting the bottom line.
Case Studies: Bebe and Burlington Coat Factory
In addition, by taking this crucial step and implementing data collection software, Wall Street can see that a company is serious about improving profit margins and will boost stock prices accordingly. An example of this paradigm can be seen with clothing retailer Bebe Stores. Investment advice website The Motley Fool noted that although clothing trends are notoriously fickle and hard to predict, Bebe's stock price recently went up by about 11 percent. Although many factors contributed to this rise, financial services firm Janney Capital recently released a more bullish account of the business because Bebe upgraded its inventory control system.
The Bebe example is not an isolated one either . Home Textiles Today noted that although Hurricane Sandy decimated Burlington Coat Factory's East Coast stores and dampened demand during the historically busy fourth quarter last year, the company was able to recover because its inventory management system helped to boost product turnover rates by 15 percent. As a result, Burlington Coat Factory was able to achieve positive sales numbers at the end of last year despite the natural disaster.
Companies have many inventory management systems to consider to see similar results to Bebe and Burlington Coat Factory, but barcode software may be the best choice. Not only is barcode data collection technology cost effective, but it is also easy to use and extremely accurate.