Depending on the nature of your business, inventory management can be among the major determinants of your success. In fact, effective inventory management is critical to success. Understocking and overstocking items happens all too frequently, creating issues on both ends of the spectrum.
Establishing an effective inventory management process can be a large undertaking to start with, but the setup is worth the effort. It is all about finding the best system to track inventory and stock quantities in and out of your warehouse or business premises. You need to take a good look at your supply chain and how you can make changes that will bring overall improvement.
Here are a few of the more common tips that can assist with improving your inventory management:
Have Multiple Suppliers
Vendor management is a sub-category of inventory management. Let’s say you have a highly sought-after item; having a substitute vendor as a backup is definitely a good idea. In the instances that you can’t find stock from your primary supplier, you can call on your backup to assist without letting customers down.
Create An Inventory Management Plan and Stick To It
Effective inventory management is a strategic process that requires a strong foundation involving all departments within your business. By having a well-laid-out plan and following it, every aspect of your supply chain will improve, and your other business operations can run smoothly. Start by doing the following:
- Prioritise your inventory to understand your best sellers, big stock items, and those that move a bit slower and need less attention
- Catalogue and track all product information, keeping it all in one convenient location
- Do regular audits on your inventory
- Keep tabs on the performance of your suppliers
- Create a system for the way that you receive and process your stock
- Track sales and orders yourself
All of this can be done using inventory management software, or you can develop a system of your own using spreadsheets, some foresight, and planning.
Keep Track Of All Product Details
As mentioned above, ensure that you keep proper tabs on every product in your inventory. Depending on the type of products you deal with, there will be different pieces of relevant information. Things like SKUs, barcodes, dimensions, variants, supplier information, etc. You should have a consistent overview of the varying prices of products to be aware of factors that may affect the price, such as scarcity, supply, and demand, etc.
Examine The Performance Of Your Suppliers
An unreliable supplier can wreak havoc on your inventory management and business processes. Suppose you have a supplier who is consistently late with deliveries or under-delivers on orders. In cases such as this, it’s best to discuss the concerns with your provider, determine the source of the problem, and be ready to switch suppliers if the inconsistency persists.
Create a Bond with Your Vendors
A positive relationship with your vendors is critical to the success of your business. Your suppliers are an essential part of your business that keeps your customers happy. Build strong relationships with your suppliers and develop a system of trust. Not only will this make business more enjoyable, but it can help if you need to call on them in a pinch. You might find that when they have new products coming to market that you’ll be one of the first to know.
Final Words
Creating an effective inventory management is an integral part of business success and we believe the tips above will help you achieve it.
Where you have severe issues with overstock, Industrial Clearance is here to help. We will publish your overstock items on our platform, which is available to several high-calibre, serious buyers who are always on the lookout for a good deal.
Contact us here to discuss further.
