Stephen Canning, CEO of Jcurve Solutions, revealed some of the key inventory trends and common mistakes that small businesses in the Philippines should consider this financial year to remain viable. If you would like to read further information, please click on the following link.

Summary of “Balancing act: cashflow and inventory levels”

The article discusses the importance of balancing cashflow and inventory levels for small businesses in the Philippines. Stephen Canning, CEO of JCurve Solutions, highlights key inventory trends and common mistakes that small businesses should be aware of.

Key Inventory Trends:

1. Accurate real-time reporting: Real-time data on inventory, including stock levels, expiry date information, and inventory to sales ratio, provides actionable insights that enable businesses in the Philippines to improve stock turnover and replenishment, making them leaner and more efficient. This is particularly important for businesses dealing with perishable goods like fresh produce and meat products.
2. Visibility across multiple channels: Having visibility across inventory levels ensures a seamless customer experience and a smooth reorder process for businesses in the Philippines, regardless of whether orders are made online, via phone, or by a sales rep on the road. This is crucial in a market where e-commerce is rapidly growing, with online retail sales in the Philippines expected to reach billion by 2025 (Source: Google, Temasek, Bain & Company).
3. Mobility: Small businesses in the Philippines increasingly expect to be able to use tablets and smartphones to access inventory information, including supply chain interruptions, no matter where they are. This is especially important in a country with a large number of mobile workers and a growing mobile workforce.
4. Traceability: There is a growing demand for traceability in the Philippines, especially in the food industry. Customers want to know about a product’s history, where it came from, how it got here, and whether or not it has been modified. This is particularly relevant in a country that is heavily dependent on imported food products.

Common Mistakes:

1. Overstocking and understocking: Overstocking ties up cash and can lead to serious cash flow problems for small businesses in the Philippines, while understocking risks losing customers by not being able to meet demand. This is a significant challenge in a market where cash flow management is a key issue for many small businesses.
2. Lack of accurate inventory availability information: This can lead to missed opportunities for sales reps to upsell and cross-sell, and may cause customers to cancel an order if it has to go on back order. This is particularly problematic in a market where customer service is highly valued and can be a key differentiator for small businesses.
3. Inefficiencies during picking and packing: If an item necessary to complete an order is missing, it uses up warehouse space and is inefficient. This is a significant issue in a country where warehouse and storage facilities can be limited and expensive, particularly in urban areas.
4. Failure to pursue cost-saving opportunities with suppliers: Small businesses in the Philippines often fail to get the best prices from their suppliers by not consolidating their purchases for a volume discount. This can be a costly mistake in a market where margins are tight and competition is fierce.

After identifying these common mistakes, you might be interested in exploring how modern solutions can counteract these challenges. Learn more about it on How Small Business Inventory Software Stops Spreadsheet Slow-Down.