Final answer:
Better inventory management contributes to increased sales by ensuring optimal stock levels, improving cash flow, and customer satisfaction through the availability of goods as needed. It reduces costs and enhances productivity, factors that are key in boosting sales performance.
Step-by-step explanation:
Better inventory management can indeed contribute to increased sales. Effective inventory management ensures that a business has the right amount of stock on hand to meet customer demand without excess which can lead to markdowns and reduced profits. It helps in minimizing carrying costs and can improve cash flow, both of which are critical for the financial health of a business.
Good inventory management can lead to increased productivity by decreasing the amount of time and resources spent on managing inventory levels. This can enable a more efficient ordering process and less time spent on stock management; thus, employees can focus on other aspects of the business that can drive sales and improve customer service.
Finally, efficient inventory management can make a wider variety of goods available to consumers at lower prices by reducing the costs associated with overstocking and stockouts. This ensures that consumers always have access to the products they need when they need them, which can lead to increased customer satisfaction and repeat business.