How to Improve
Inventory Management


Picture this: Your business is thriving, you believe everything is going well until...you realize money is flying out the warehouse windows. That's a bummer. But don't you worry. We have a few tips on how to improve your inventory management.

Are you ready to start saving money? Read on to learn how.

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Learning How to Improve Inventory Management

To improve your inventory management, you must know what it is. Inventory management is any procedures or course of action that connects to your stock. Ordering, receiving, stocking, tracking, and shipping all pertain to inventory management.

This can make or break your company. You don't want to spend hours and hours keeping track of your inventory. There are systems that can help you create the most efficient warehouse.

A common mistake many businesses make is not taking inventory often enough. An inventory management tip is to use software to keep track and do smaller inventory checks more frequently.

Warehouse vs Inventory Management

Warehouse management covers everything, including the building, any equipment used, staff, and products. On the other hand, inventory management covers the products coming in and out and the supply chain.

Minimum Stock Levels

It is impossible to know exactly what consumers will want tomorrow, next week, or next month. Take a look at your past order history for each product, and based on that data, decide on the minimum number you're going to keep in stock.

Consider reaching out to your supplier. They can advise on the inventory they have as well, and you can determine what may need to be ordered early or in larger bulk.

Trends are constantly changing, and with social media, they are cycling through faster. Keeping a minimum stock won't ensure you'll never sell out, but it will help.

Overstocking and Understocking

Overstocking and understocking can be easy to do. It could take you a while to figure out the right amount of inventory to have at all times.

Having a warehouse inventory management software can help minimize overstocking and understocking. It can also alert you when it's time to order more, and tell you what products may need to be discontinued or discounted.

Shrinkage

Products will get damaged and lost. It's unfortunate, but it happens and you need to be aware when it does. It is imperative that staff report loss of products so you can order more.

If you think you have 100 products but ten got lost, fifteen were broken, and two were stolen, you are no longer at your stock minimum. This could cause issues with the supply chain, and you could potentially lose customers and money.

Management Software

Purchasing an inventory management software could save you time and a lot of stress. The software can help you track your products and inventory. Instead of manually recording stock, a program can assist you and even predict the next time you should order.

Many software companies will have a free trial, so take advantage of this. It is important that the software is easy to use. The main purpose of a management software is to reduce tasks and ease your stress.

Look for a system that has barcode scanning. It will help reduce human error, and it is much quicker than manually logging it.

What good is a program if it makes business harder for you? The management company you decide to work with has to make sense for you and your product.

Expired Stock

Wondering how to improve your inventory management? One simple thing to be mindful of is if you have a business that deals with products that could have an expiration date. You will quite literally be throwing money away if you have to discard products that have gone bad.

Hiring Personal

Hiring staff can be challenging. A warehouse manager that has integrity and a strong work ethic can make all the difference. They must be able to communicate with you and keep you in the loop.

You need to be able to rely on the manager to keep you informed, whether that be about daily tasks or emergency situations. At the same time, he or she should have the capability to handle minor issues without you.

Back-Ups and Privacy

Technology has failed us a time or two. It would be devastating for your business if the system failed or crashed and you lost all your data. Consider having a backup system.

One of our inventory management tips is to ask the management team if they have a backup system they use to ensure you won't lose all your inventory information. The system should also have privacy guarantees. You don't want any information getting into the wrong hands.

Train Your Team

Once you have decided on your software, it's important to train your staff.

It will be frustrating for everyone involved if your team doesn't know exactly what they should be doing. Your business's productivity will suffer too.

Proper training takes time, but it will be beneficial in the end. Patience is key. Remember, learning a new system can be challenging for team members.

Turn Over

Tracking how much you've sold in a certain period of time is referred to as inventory turnover. Knowing what sold and when it sold can tell you how much you need to order next time.

It can also help you demand pricing for that product. This is another item you can take off your list of things to do if you have an inventory management software.

Time to Save

Learning how to improve inventory management is key to reducing unnecessary spending. No one wants to fail, and everyone wants to maximize their profits.

Following these steps will help you reduce your spending and move your business to the next level. Sign up and let us help you improve your inventory management!