Master your inventory to delight customers, vendors and employees. With the right stock control methods, you can meet orders faster, improve workflow and reduce overheads.
Poor inventory management can result in loss of sales and escalating costs, so getting a handle on your stock control is key.
It’s getting the balance of stock right. Not having enough items can result in stock-outs, where you don’t have what your customers want. This can result in a scramble to expedite higher-priced replenishment – or, even worse, you lose the sale to a competitor. Either way, you’re putting your business at risk unnecessarily.
On the other hand, holding excess stock can impact your operations too. There’s warehouse costs, insurance, shrinkage, depreciation and asset taxes. Excess items generally cost businesses an additional 25% to 50% per year. That’s why it’s so important to have the right inventory management tools.
Once you’ve implemented the right inventory management software for your business, there are steps you should take to improve your stock control processes.
Taking the time to evaluate your current practices will help you understand where improvements need to be made. Effective inventory management is purpose driven. So, considering what each link in the chain does – and why – allows you hone in what functions need improving. Make sure you also consult internally with members of your team to identify potential problem areas.
A major part of inventory management is knowing your exact stock levels. With an inventory control system, you’ll have 24/7 access to real-time data so you can stay on top of orders. Perform regular, routine stock reviews to track every single item you have, including lost, stolen or damaged products.
It’s important to make sure you’re never out of stock, especially when demand is high. For smooth flow of product during busy periods, automate your purchasing processes so replenishment is taken care of once your stock falls below a certain number. That way, you’ll always have the stock levels you need, exactly when you need it.
When you start tracking how often you need to restock certain items, you’ll be able to identify trends in consumer behaviour. Be aware of periods when ordering is high, and when it’s less. Preempting what your customers want, before they even know they need it, will help your business be at the forefront of their purchasing decisions.
Leave traditional stock control methods behind. Just-in-time inventory management (JIT) is an approach used to increase company efficiency by stocking products when in demand and avoiding stockpiling. By reducing the amount of inventory stored in the warehouse, this allows you to cut costs and avoid product waste due to expiration. However, this stock control method relies heavily on having an efficient supply chain.
Taking charge of your expenditure is essential to driving more profit in such an unpredictable operating environment. The right software makes it easy for you to have a handle over your stock control so you’ll only buy the stock you need – resulting in a more profitable outcome.
Make smarter, informed decisions with easy access to live digital data for your stock levels. You’ll be able to see what stock you need to buy, how to price, and what to discontinue. Plus, as it’s web-based software, you’ll be able to see your database from wherever you have an internet connection.
Delight your customers so they come back time and time again. Providing great service is the centre of a successful business. With inventory management performance measures, you can optimise your ordering process so it’s tailored to your customer needs.
Processing orders faster means you can get paid without delay. With our online software, you can automate the billing process to make collecting payments a breeze. Spending less time managing purchase orders, creating invoices and chasing payments means more time to expand your operations.
One of the biggest challenges of inventory management is having the right stock, in the right amount and at the right time. You’ll be able to analyse live sales and inventory data to produce accurate forecasts so you only stock what sells. This will help you hit your growth targets, minimise stock-outs and provide the maximum return from your inventory.
With better visibility over your inventory, your entire business should see the benefits. Much of your admin heavy stock control processes will be automated or optimised, freeing up more time to invest where it’s needed most, particularly in other areas of your operation. Plus, you’ll have the data needed to make more strategic business decisions.
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