Business owners and operators face increased operational demands as the holiday season and the end of the year approach. This busy time often involves increased sales, raised customer service needsyear-end financial closings, New Year's planning and office holiday celebrations – not to mention the many personal commitments that come up during this season.

Effective inventory and expense management are essential to maintaining operational efficiency and productivity while ensuring customer satisfaction. Adapting these processes enables businesses to allocate resources effectively, focusing on basic growth objectives and meet key performance targets for the year.

“Inventory” management of your inventory

Purchasing products from suppliers at the right time is essential to maintaining efficient operations and managing cash flow. Proactive inventory planning helps businesses avoid last minute interruptionskeeps operations running smoothly and ensures they are ready to meet customer demands.

It's a good practice to follow year-round, and Walmart Business research finds it's a priority for business owners and operators nationwide.

Earlier this year, we commissioned industry research firm Morning Consult survey 500 US business owners and operators on their supply management practices. The research found that most anticipate their supply needs at least a month in advance, and 80% carry an inventory that lasts 1-3 months or more.

Forecasting 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 replenish or search for needed materials.

However, businesses should be careful excess inventory. While keeping products on hand ensures availability when needed, it often results in higher storage costs and risk of spoilage for certain items. It also ties up valuable capital that the business could otherwise invest in customer service and business growth.

That's why it's important to work with suppliers who can help minimize some of the pressure by offering fast, flexible and hassle-free fulfillment options that allow businesses to choose how, when and where they receive orders, including delivery and receiving. Moreover, using 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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Management and review of expenses

While effective inventory management is essential, expense management is equally important to ensure smooth year-end operations. Many organizations face added costs during this period—whether it's 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 coming year. Spending too much 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 expenses to identify areas of excessive or unnecessary spending. Implementation of one clear budgeting process allows organizations to allocate funds more effectively and track spending against established targets. Businesses should look for suppliers that can offer affordable prices for the products they need and solutions, such as expense tracking software and other tools, that can provide real-time insight into spending patterns and help automate of purchase approvals while monitoring essential expenses.

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Encouraging financial awareness throughout the team will further strengthen cost control efforts. Providing basic training on cost-effective decision-making or involving 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. Working with a supplier that offers seamless, user-friendly platforms can encourage a collective effort towards achieving business financial goals, freeing up time for everyone to focus on what matters most.

The year-end rush doesn't have to be a scary time. Prioritizing inventory, estimating expenses, and cultivating financial responsibility can help businesses effectively sailed in haste and the buzz of the holiday season. By working with flexible suppliers, using solutions that provide valuable data and promoting a collective effort towards financial goals, businesses can ensure that the necessary supplies are available, maintain a healthy cash flow and capture potential savings. When supported by a supportive supplier, this approach not only allows teams to focus on their core responsibilities, but also frees up time to celebrate the holiday season with friends and family.