Efficient Inventory Management 101
Fast movement of goods often result to a chaotic inventory, especially when there’s no system to begin with. Inventory management is crucial for an effective and efficient way of handling physical goods in order to reduce unnecessary movement and expenses. When you develop an inventory system for your business, keep in mind that you have to synchronize both your physical and digital records.
1. Track demand for product categories.
Move your winter SKUs at the back when it’s summer time, and store summer SKUs in a space where you can easily access them. You can monitor the demand of your products by having an audit of your previous year’s sales report. Depending on how many product categories you offer, you will easily have a grasp of what items sells the most on a specific time frame.
2. Set re-order points.
If you are the type of seller that orders the same amount of SKUs every week or every month, you must be dealing with a lot of dead stock or overstock. Unless you have a great amount of storage space for your items, you must set your re-order point and get only the right amount of inventory that you will be able to sell.
3. Synchronize digital and physical inventory.
Look of inventory management programs or applications that you can easily access every time you make a sale. Not only will it save you loads of time manually counting items, you will be able to maximize the time that you have doing more important things for your business. This is also beneficial when creating sales reports and invoicing customers.
4. Have a designated receiving area.
Once your new inventory comes in, don’t just leave them laying around in empty spaces of your warehouse. Have an area or corner that is designated only for newly-arrived boxes. This lets you know that you have new items to sort and put away. Once this area gets jammed with piles of boxes, you know it’s time to tidy up, sort, and make room for new boxes that are arriving.
5. Label. Label.
We can’t stress this enough. It’s very important to label everything that you have so you won’t get confused with storage boxes. Create an organization system that works best for you and share this information with your team so you are all in the same page. Make sure that everything is in its own proper place and the items of the same category stay together.