Michael Curry
Are you searching for more effective ways to keep track of inventory? Even though inventory management isn’t the most exciting topic, it is one that your business must consider.
If you do not have solid inventory management practices in place, you may lose potential sales because of items being out of stock.
Learning some best practices for inventory management can help you improve your processes and minimize issues. Keep reading for some tips to help you with this goal.
Improve Your Forecasting
Proper forecasting is essential. You should base projected sales calculations on things like historical figures, predicted growth, historical sales figures, marketing efforts, promotions, and other factors.
Once you know this information, you can adjust inventory levels to match your predicted sales volumes.
By doing this, you can avoid a situation of “feast or famine,” which relates to under-or over-ordering inventory.
Implement an Inventory Management System to Reduce Human Error
When you have humans working on your supply chain, errors are inevitable. This is a fact.
While mistakes are going to happen, they can also cause issues when it comes to inventory management. When it comes to supply chain management, using quality software can help minimize the possibility of human error.
Finding and using the right inventory tracking software system can help eliminate the manual aspect of inventory tracking.
It is best to find intuitive software and make sure your team knows how to use all the features it offers.
Plan for Emergencies
Even though your goal may be to keep inventory levels at the proper levels, you will find times when demand exceeds supply.
You should have a plan for such emergencies. Be sure to line up additional suppliers and budget to accommodate rush shipping charges. This will ensure you can meet customer demands.
Identify Your Low-Turn Stock
If you have inventory items that have not sold in the past six to 12 months, you may want to consider eliminating that item from your inventory.
It may also be a good idea to find new strategies to eliminate the stock you have. This could be a promotion or a special discount for the item. After all, the excess stock will waste your capital and space.
Evaluate Supplier Performance
When suppliers are unreliable, they can lead to issues for your inventory. For suppliers that are consistently late with deliveries or that short orders often, now is a good time to act.
First, talk about the problems with the supplier and see if they can provide a viable solution. If not, be prepared to find a new supplier or find a way to deal with inventory uncertainty.
Now You Know How to Keep Track of Inventory
When you are looking for effective ways to keep track of inventory, you can begin with the tips above. These will help you better manage your inventory and ensure things run smoothly.
If you are searching for more information on topics like industry, manufacturing, and management, take the time to read some of the other blogs on our site.
