When it comes to inventory management, it’s easy to get overwhelmed. It’s crucial to ensure that your business remains profitable, but it can be challenging to know how to streamline the process.
Luckily, sorting out your stock doesn’t need to be so stressful, as long as you know where to begin. By setting up your warehouse well from the start, upkeep will ensure it remains organized.
Below we are going to discuss seven tips to help you manage your business inventory.
Sound interesting? Then keep on reading!
Sort your inventory into categories.
The first step in managing your business inventory is to know how to categorize your stock. Every product is different, and each item has its own way of being stored.
For instance, you may have raw materials and unfinished products that aren’t ready to be sold. There is also anticipation inventory that is kept for a surge in sales and decoupling inventory which is set aside for a halt in production.
You’ll also want to prioritize your inventory into groups. This will help you know what stock to put onto your shop floor.
A = higher-priced items that you don’t need many of.
B = moderately-priced items that move more quickly.
C = lower-priced items that are easy sellers.
Use an inventory management program.
Nowadays, inventory management is easier than ever, thanks to technology. There is a wide range of software out there that can help you track your orders and assist staff with easy product location.
There are many different types to choose from, so make sure you research what is best for you. It will depend on the size of your business and the stock you are selling.
Just don’t forget that some simple purchases can make life a lot easier alongside technology. For example, it can be worth getting some vinyl warehouse number labels so that you can locate your items quickly.
Do regular audits on the stock.
Most businesses choose to do an audit on their inventory at least once a year, but if you find that you’re having consistent problems during “stock take,” it may be time to do it more regularly.
If you’re not them every month, try quarterly. You’ll want to make sure that what is in your system matches up to what is on the shelves.
Pay attention to quality control.
Quality control is crucial no matter what you store and sell for your business. You’ll want to make sure that your products are in the best possible condition before they are sent to your customers.
The way to do this is with thorough inspections that are conducted on a regular basis. Alongside minimizing waste, it will ensure that everything is meeting your set standards.
Have a set process to receive inventory.
Sometimes the leading cause for lost or incorrectly stored inventory is because it hasn’t been received correctly. Therefore, you’ll want to have a set process in place that your staff can follow easily.
Remember, as well as checking that you received the correct quantity of your order; you’ll also want to double check that you were charged the right amount. Otherwise, you may not even realize you are wasting money.
Have ways to maximize space.
Even in big warehouses, you still want to find ways to maximize space and organize your stock. While they usually have plenty of built-in shelving, you may want to make adjustments depending on what you are selling.
For instance, things such as hanging racks, baskets, and bins all make it easier to find and locate your products. Not to mention it can free up more space if you plan on expanding your business.
Keep your warehouse clean.
Finally, while this might seem like the most unimportant tip on this list, you don’t realize how important it is. Without careful planning and maintenance, your warehouse can quickly become messy.
It’s vital to keep things clean and ensure that all of your stock is properly sat in its location. Without doing this, products can be lost behind shelves, and it overall makes it much more challenging to navigate around the warehouse.
And that’s it! These were seven tips to help you manage your business inventory. While it may seem a little overwhelming at first, it doesn’t have to be such a strenuous process. By planning ahead, staying on top of the organization, and following the advice above, you’ll be able to track your stock accordingly.