Whether you run a small mom-and-pop store or a multinational corporation, it is almost impossible to keep your business running smoothly without properly managing your inventory.
A well-managed inventory will not only save you time and money, it will also help keep things organised and help operations run smoothly. In this article, we will share expert tips on how to manage your inventory and make the most of the benefits they offer.
So, let us get started already!
1. Assess Your Current Inventory
The first step in managing your inventory is understanding what you have. How?
Take stock of every item you have – make a list of items and their quantities, and of course, where they are located. Equipping yourself with this information will tell you to prepare you for running an effective inventory management system.
2. Categorise Your Products
One effective way of making your inventory easy to manage is by creating categories for your products. If done correctly, you can easily group similar items using any criteria you like – the product type, size, or brand.
For instance, if you are in the clothing industry and maybe you own a store, one quick way to implement this is by categorising items by gender, size, or style. Doing this will help you streamline your processes and take a lot of off your shoulders.
3. Set Par Levels
Having invested your time and resources in getting your business up and running, the last thing you want is customers not getting their orders because you are out of stock. To avoid such an unpleasant experience, you should set par levels.
This means that you should always have a minimum quantity of every product you should have at hand to meet your customers’ demands.
That way, you won’t have to lose sleep over running out of items at the least expected times or losing your customers to your competition because you can not meet your clients’ demands.
When any item falls below the set par level, you automatically know it’s time to reorder. Another benefit is that it prevents you from either overstocking or understocking.
4. Utilise Inventory Management Software
Thankfully, one doesn’t have to break a sweat to maintain a perfect inventory. There is quite a lot of technology out there that can help. All you have to do is assess the options available and stick with the one that satisfies your needs.
Virtually every inventory management software option is designed to help you track your stocks in real-time, automate the reordering process, and give you deeper insights into your inventory trends across your store.
In addition to all we have shared so far, you can also consider adopting the popular First-In, First-Out (FIFO) Method (the idea is to sell older items first before selling newer ones – that way, you will be preventing wastage) and also undertake regular audits and counting.
Last but not least, label everything.
While labels are only just getting the attention they deserve in organising and managing inventory, they are not new around the block. Often overlooked by most business owners because of their simplicity, these amazing tools will take a lot of work off your shoulders.
Here are a few ways they can help:
a. Product Labels
Every item should have a clear product label. Include essential information such as product name, SKU (Stock Keeping Unit), price, and any other relevant details. This helps employees quickly locate products and assists with pricing.
b. Barcode Labels
This type of label works like magic because of how much time it can save you. If you attach a barcode label to your product, getting information about that item becomes very easy because all you have to do is scan the barcode to update your inventory. Easy peasy!
What are its benefits? It reduces manual data entry errors and speeds up the checkout process.
c. Location Labels
This type of label helps with product storage. It ensures that items are returned to designated spots. Thereby preventing chaos in your storage area.
d. Expiry Date Labels
If your business deals with perishable goods, then “expiry date labels” are a lifesaver, and you should invest in them ASAP. Top on the list of their benefits is that they help identify and promptly remove expired products from your shelves.
To get custom labels for your business, don’t hesitate to contact CDM Labels for help. With their variety of options and expertise in making different labels, you will surely get the best out of your label investment.
In addition, you should also invest in quality and frequent employee training and take returns and warranty management; this will help you manage defective products and returns. All of which contribute to customer experience. There you have it, expert tips on how to organise and manage your inventory in 2023 and beyond. All the ideas we have shared so far will help you save money, reduce waste, and, ultimately, keep your customers happy. And you know what that means for your business – increased sales and customer retainment because happy customers always come back for more.