The process of creating a sustainable business is not an easy one, and one of the most important parts of that process is inventory management. Inventory management involves the proper storage and categorization of your products to create the shortest possible time from when a customer makes an order to when they receive their order. To avoid problems like stockouts which can easily lead to loss of confidence in you from your customers, you need to actively monitor and update your inventory in real-time. Here are some tips to help you.
1. Have a plan
To properly manage inventory, businesses need to have a clear plan in place. Without a plan, it’s easy to let your inventory spiral out of control. Decide what you need and what you can do without, and stick to your list.
There are three main steps in inventory planning: setting inventory goals, analyzing data and creating a plan of action. Setting inventory goals helps you to determine what level of inventory you need to maintain. Analyzing data helps you to understand historical sales patterns and identify trends that tell you what to stock and when to stock them. Finally, creating a plan of action helps you map out the steps needed to achieve your inventory goals using the data you have collected.
2. Take stock regularly
Whether you own an auto shop or a medical device warehouse, keeping track of what you have on hand is essential for good inventory management. Make sure to take stock at least once a week, if not more often. This is especially true for items that are in small parts like o-rings. Be sure to choose a reliable supply chain partner for these small but essential parts to avoid disruptions to your workflow.
3. Don’t be afraid to ask for help
If you’re feeling overwhelmed by inventory management, it’s okay to ask for help. There are a variety of ways to get help, from hiring an outside consultant to taking an inventory management class. Hiring a consultant can be expensive, but it may be worth it if your inventory management system is complex. Taking a class is a good option if you want to learn how to manage your inventory yourself but need some guidance. If you feel the need to upgrade your system, or you need a new set of eyes to help analyze your inventory management process, it is a good idea to hire an independent consultant.
4. Invest in inventory management technology
In today’s ever-changing business landscape, it’s important to keep an open mind to new technologies that can help you streamline your inventory management process. There are a number of different software programs available that can help you track inventory levels, predict customer demand and even place automatic reorders when necessary. By keeping an open mind to new technologies, you can ensure that your inventory management process is as efficient as possible.
Grow your business with better inventory management
It is impossible for you to know when and how much to expand your business without having a handle on your inventory. You need to know what you have relative to the orders you are receiving in order to know what you need to add to your inventory.
Inventory management naturally wears an imposing outlook when you are a budding business but with proper diligence, it comes easy with time. Having in mind that it saves you from disappointing customers and makes you appear professional, it is worth every resource you put into it.