For retailers, big or small, inventory control is always top of the mind. You need always to have a balanced inventory to ensure your business is not always under too much pressure.
For instance –
- Too much inventory means you will have less room for new products.
- Too little inventory means disappointed customers walking away from your business.
– And once the sale is lost, there is no guarantee you can recover them back!
So, what is the solution?
The answer is very simple. You need to be somewhere between that inventory line to strike the perfect balance where you will have enough space for new products and never allow your customers to go back empty-handed.
That being said, it is still a difficult task to strike that perfect cord.
Today, we have taken this opportunity to discuss inventory management and ways to improve it.
5 Ways To Improve Inventory Management
Inventory management is all about keeping track of your stocks and goods. It ensures that the right product is at the right place and easy to deliver.
An effective inventory management system helps you react to the market demand and ensure that your inventory is always at the right limit – Not too little, not too full.
This is why you need to think strategically. Although we know that your current strategy is helping your business just fine, integrating these methods will help make inventory management more efficient.
1. Determine The Minimum Stock Level
Every inventory needs a refill. Some need it every week, some need it every two weeks, while some need it once every month.
Every business has different requirements; you need to be aware of inventory level and place an order at the right so that inventory is replenished before becoming empty.
Minimum stocks are determined by how your inventory stocks sell.
2. Categorize Your Category
Categorizing your item is important. However, every inventory has items that are more important than the others. Therefore you shouldn’t treat all the items in inventory equally.
Whether you want to prioritize the item based on popularity or organize them on the shelf based on weight, you need to categorize them effectively.
For instance, you can use Axchange Monitoring to track the weight of the items and organize them accordingly.
3. Store Your Item Properly
One of the main areas where the inventory accrues a loss is inventory damage and improper damage. These are the kind of losses that put a massive dent in your revenue.
The first step for inventory management is having a room with a controlled temperature. So that perishable item like food does not get easily damaged.
In addition, you can keep all your high selling items in a more accessible place so that staff can easily pick and pack the things. And as for low-selling items, you can keep them in the rear.
4. Optimize Your Inventory Replenishment
While managing your inventory, everything is not under your control. There are suppliers that are important for inventory management. And the worst part is that you cannot control their actions. Sometimes they are early with the supplies and sometimes too late.
Talk with your vendors and suppliers and ask them about their consistency and tenure for replenishment. This way, you can plan and optimize your inventory accordingly.
5. Perform Inventory Audit Regularly
Yes, today, this task is being done by software tools. Although the software makes things easier for you, something they might not show accurately. Hence, it is important that you physically reconcile the inventory and digital data.
Cycle counting is one of the effective ways to ensure there are no errors with inventory management or any discrepancies between the on-hand inventory and computer data.
Inventory control is an important aspect of a successful business. No matter the situation, you need to be aware of the inventory level. This helps you replenish the stock and allows you to keep track of your business.
Simply looking at the inventory, you can say what product is most valuable and what product is a waste of space.
The tips we have mentioned above will help you make more accurate decisions, and calculations and ensure fulfillment of customers’ orders.