Inventory management is a crucial part of business profitability and bottom line. Some brands may have too little stock creating a bad impression with customers. And with some cases, over-stocking is also a problem creating losses in the long-term. Good inventory management lies in between these two extremes. Inventory management requires a lot of planning and is always worth the effort.
Managing your inventory is an important lesson you will learn in your business journey. Let us discuss a few important tips that will help to manage your inventory easier.
- Keeping records of product information for items in your inventory is crucial. Data like the suppliers' countries of origin, lot numbers, barcode information, etc., should be stored for better tracking and Management.
- Regardless of your inventory audit frequency, make sure to physically count your inventory to ensure it matches your idea of the stock.
- It is important to analyze your suppliers' performance credibility and reviews time and again. If you incur problems with supply chain logistics, it is best to discuss them with your supplier. Always have backup partners and suppliers to deal with changing stock levels.
- The 80/20 inventory rule is a lifesaver for many businesses. According to the rule, 80% of your profits come from 20% of your stock. Your inventory planning and management priorities should be for the 20% of items. Invest time in studying the life cycle of these items as they make the most money.
- Tracking sales may seem like an obvious thing to do for business owners. But do you track the more important aspect of your sales? For example, is the sale of an item seasonal? Or do some items sell together? Understanding the finer details of your sales helps keep your inventory in control.
As businesses grow, it becomes increasingly clear for business owners that automating inventory management is the way to go forward. Investing in inventory management software and call center outsourcing companies is a helpful tip for businesses learning to manage inventory.
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