The information below outlines the need to evaluate the difference between taking an inventory using your internal staff and using a professionally trained Data Capture, Analysis, and Inventory Company.
Over the years many retail, manufacturing, warehousing, distributors and other industries have changed their perception of data capture. At one time, 95% of the retail industry performed their own internal counts and less than 5% utilized external professional services. Today, more than 95% of the retail industry outsources their inventory to professional services. Only a few retailers take on the task. Why? Inventory accountability has become much more complex than “financial counting”. Technology has changed and continues to change as inventory is now used for more than just year-end numbers. It takes accurate data to correctly “measure – monitor – adjust”. Good data offers many “key indicators” to evaluate and properly manage and maintain supply chain.
To do this correctly, Data Capture and Inventory Companies invest vast amounts of money in proprietary software to capture, clean, and process your internal data files. They also spend 5-10% of their operating budget just to purchase hardware. These percentages still exclude; the high cost of labor, training and benefits, research and development and travel. However, travel is often offset by experienced teams who are efficient and accurate while also delivering; progressive reports, in depth final reports, and additional comparative analyses providing customers the tools needed to make costly decisions. Currently, inventory services are better known as professional data collectors and analysts who provide data for one of your largest assets which are reported to shareholders, auditors, boards of trustees and the IRS. Therefore, your inventory service should be equally valued to your outside CPA firms. Hiring temps and supplementing internal staff increases risk while decreasing accuracy.
As a professional data capture and consulting company, DSC has helped many companies in the retail and manufacturing sector transition away from standard year end inventories. DSC greatly assists in evaluating and identifying; proper inventory levels, deficiencies, leakage, risk factors and best practices.
On the surface, outsourcing may appear to be the costlier alternative. After computing labor and over time for in-house personnel (nurses and other personnel who could be attending to your patents) who do not have the skillset, one could be led to believe performing this service internally is more cost effective. This line of thinking fails to consider several important factors.
- Don’t “Fly under the Radar” anymore.
- Budget for the most Important Event in your Business
- Counting Your Largest Asset
- Put it on your Balance Sheet!
For more information, please call DSC at 434-263-5200 or visit our website at www.dscinv.com
Jim Jones
CEO-DSC