Whether you have a small storeroom or a wide warehouse, good inventory management is crucial for your business. The task of counting inventory and stocking shelves might be tedious but doing so is essential for your company to succeed. Make the most out of inventory management with these very helpful pointers.
Inventory management, as the name suggests, is the process of monitoring your stock. It’s about determining the number, weight, sizes and location of the products you are selling. Inventory management is vital because it keeps you updated – so you know when to replenish the items that were purchased from your store.
There is so much at stake if you omit or incorrectly do inventory management. For one, you might lose potential customers if you don’t have the products that are high in demand. Secondly, you stand to lose money if you purchase a lot of product that is barely getting off of your shelves to begin with. Depending on the products you sell, they could spoil or lay there untouched for a long period of time – and that means loss of income for you.
Organizing your warehouse is more than just keeping the area clean. In fact, this can help you maximize your profits. By organizing your warehouse, you can determine the items that sell well – and those that don’t. That way, you can strategically place the products that sell better and faster in a more convenient location.
Another advantage of warehouse organization is the additional space you get to free up in the process. Your shelves might be occupied by big boxes with just a few bulk cutting boards inside – that’s a waste of important warehouse space! Tidying your warehouse can help you maximize space for more stocks, which of course, can lead to improved cash flow.
Now that you know the importance of inventory management and warehouse organization, it’s time for you to make a move for the better! Here are some tips that can help get your inventory back on track.
Whether you sell food or high-quality wood boards, the key to optimizing your inventory is to sell the old stocks first before peddling the new ones. This will help prevent spoilage for food items, and the possibility of package or item wear-out for non-perishable items.
Make sure to set a minimum number of items in your warehouse. If the count goes below this, then it means that it’s time for you to replenish your stocks. Remember, if products go out of stock – your clients will definitely flee to a competing company which can answer to their needs at a quicker pace. Be prepared to accommodate to your client’s needs if inventory is low!
Make sure you and your staff count your inventory at regular intervals. As it was mentioned, this can help you determine the products that need replenishment – and the items that you might need to sell at clearance price.
Trends change fast – so you need to be able to adapt to the new demands of your clients. “Feeling the market” can help you hoard items that are profitable for a certain time period (i.e. hardwood cutting boards for gift-giving during the Christmas season).