Do you feel as though your business inventory isn’t quite as organised as it could be? If so, then now is the time for you to change that. If you don’t, then you may find that your customers end up getting frustrated, and that your profit margins dwindle. On top of this, you may also be keeping hold of old stock that you really need to liquidate. With that said, this guide should help you to change all of that with ease.
Prioritise Inventory Management
The first thing you should be doing is taking the time to prioritise inventory management. If you categorise your inventory into different priority groups, then this will help you a lot. You can also find out which quantities you need and how often you sell them. Some inventory items may cost more, and they may also be slower to move, but if you keep this in mind, then you will find it easier to avoid keeping too much of those items in your warehouse at any given time. If you can, you should also segregate your inventory into A, B, and C groups. If you can do this, then you will be able to keep your A class for high-ticket items, and then C items in the lower cost items.
Track your Product Information
Keep your product information for all of the items within your inventory right now. This product information should include information such as your SKUs, any barcode data you might have, and the country of origin. You should also include your lot numbers, along with any factors that might go on to affect your pricing. It’s also wise for you to try and work out how much each item is costing you over time, so you can be aware of the factors that are affecting your pricing, as well as the general scarcity. Auditing your inventory is also ideal if you want to ensure better management. Some businesses do comprehensive inventory counts once a year, but others do them monthly or even weekly. A lot of this will come down to the amount you sell and how much turnover you have with your product. If you are having an issue controlling your stock, then you can probably invest in something like stock control software, as this is a good way for you to manage everything without taking too much time over it.
80/20 Rule
It’s also a good idea for you to adopt the 80/20 rule. This is essentially where 80% of your profits come from 20% of your inventory. You need to understand the sales cycle for these items and how much you sell in a week or even a month. Closely monitor them as well if you can. These items will make the most money, so keeping an eye on them is critical. Be consistent, too, in how you receive stock and how you manage your inventory. Minor discrepancies in receiving new stock will leave you wondering where you went wrong, but if you can stay on top of things, you can avoid this.