In an era marked by supply chain and market-driven inventory challenges, learn how revenue operations and intelligence software can enable sales reps to pinpoint opportunities to sell excess and stockout inventory.
Inventory Challenges in the New Era of Revenue Intelligence
As supply chain pressure persists for the global economy, there are ways to mitigate its impacts on revenue and meet customer demand. We previously examined how a data-driven product alternative strategy can help drive revenue and automate processes, but now let’s turn our attention to inventory challenges. Any inventory challenge, be it excess, a lack thereof, or even lack of demand, can have a detrimental impact on a business’ profitability.
Many B2B companies are feeling the impact of inventory issues on their bottom line. The good news is that revenue operations and intelligence software like Zilliant Sales IQ™ and Campaign Manager™ can help tackle inventory problems with actionable sales guidance. Before we jump into how they can help, let’s take a closer look at some typical inventory management challenges.
What Makes Inventory Management So Challenging?
“The last two years have highlighted the vulnerabilities in the supply chain, including wildly unpredictable lead times and supplier performance, that can leave you with either too little or too much of the goods your customers want,” according to Supply Chain Brain.
Inventory management is a complex task. Moving excess inventory swiftly and profitably has become harder over the last three years. In our experience helping customers solve inventory issues, we’ve come across some common recurring challenges, including:
Manual and Inefficient Processes
Sales analysts burden themselves with the time-intensive task of manually generating reports using business intelligence tools or spreadsheets. Emails and reports are all daily fodder that we expect sales reps to review, analyze, act upon, and respond. Ultimately, they lack the urgency our current business landscape calls for.
Lobbing emails back and forth to obtain only a modicum of information does nothing but waste time and offers reps no actionable insights. Manual reports also lack measurable visibility into the outcomes of the effort: Was the excess inventory successfully sold and what was the financial impact?
Leading B2B companies have already discovered the truth: They must move inventory with speed and precision by operationalizing data science into current systems and processes.
Both manufacturers and distributors face unique industry challenges. Some of these include large customer bases, a high number of SKUs, or products built to custom configurations. Even before the pandemic era, moving inventory was critical or else it ended up an expense on the balance sheet. However, attempting to find the right customers to sell to without leveraging modern revenue intelligence tools is a massive challenge.
Additionally, complexity is a challenge for sales reps when managing their workload with only so many hours in the day. Balancing sales initiatives, communicating with customers and potential customers, and even attending sales meetings makes it impossible for reps to consistently and effectively identify where time is best spent to secure the best opportunities.
Another email and spreadsheet on top of their lengthy to-do lists doesn’t help sales reps hyper-focus on the areas where they can drive the highest impact. The sales team often ignores the manual efforts to move inventory as a result.
The open market typically fluctuates the prices of raw materials, but the past three years have marked unprecedented volatility. B2B companies must equip themselves to act quickly as market conditions change.
For example, let’s say a building products manufacturer bought steel when the price was high, and then prices drop. Now, the manufacturer is sitting on inventory it paid a lot more for it than it's worth on the open market, and warehousing this inventory is costing the company even more money.
But it is difficult to move this inventory when we use manual processes to determine which customers are ready to buy. Emailing a spreadsheet and asking sales reps to analyze the data to push the inventory is simply not an effective approach. Sales reps need intelligent, customer-specific actions to move this inventory as soon as possible.
How Do You Enable Inventory and Stockout Actions for Sales Teams?
You need to execute inventory management with a measured and intelligent approach. Sales reps need to focus on moving inventory or identifying products to sell to customers when supply issues arise.
Unfortunately, managing inventory with cumbersome spreadsheets just doesn’t work in today’s landscape. Instead, react swiftly and wisely with assistance from revenue operations and intelligence software that can:
- Generate actionable, real-time insights from an unlimited number of data sources
- Deliver sales actions prioritized based on specific criteria to any commercial execution system.
- Measure the financial impact of campaign actions and sales rep behavior
Combined, these solutions pack a powerful punch. They intelligently and scalably derive and deliver revenue-driving, account-specific actions to sales reps, eCommerce sites and marketing operations tools.
In the case of inventory challenges and stockouts, they help B2B companies move inventory quickly by translating data into prioritized and actionable, customer-specific insights.
What is Sales IQ™?
Sales IQ™ is the leading B2B revenue operations intelligence solution, using advanced data science to identify incremental revenue opportunities within both a company’s customer base and whitespace accounts. Sales IQ™ determines what products and quantities customers should be buying based on the buying patterns of similar customers. As a result, Sales IQ™ customers typically see a 5 to 15 percent increase in same customer sales.
What is Campaign Manager™?
Campaign Manager™ is an application that allows sales management and operations teams to scope, refine, prioritize, and publish campaigns based on Sales IQ™ or custom, user-defined insights. Together, Sales IQ™ and Campaign Manager™ produce and deliver targeted action types including Growth, Recovery, Product Substitution, Inventory, Win-Back, Prospecting, Contract Compliance, and more directly to sales reps.