7 tips for more effective inventory management
Inventory management includes many variables and is highly customizable according to the area, size and strategy of each company.
If you want your business to grow, consider that managing your stock more efficiently will make all the difference in your company’s profitability and your customers’ satisfaction levels.
One of the challenges for all companies that deal with stock, regardless of their industry, is to ensure a balance between having stock that satisfies customer orders and having excess merchandise, thus responding to market demand and maximizing business profitability.
With the pandemic, many companies have invested in smarter management of their logistics systems, realizing that it is one of the critical factors for their success and that, for the most part, they were not prepared for such a large stock rotation.
Discover in this article 7 tips to achieve efficient stock management, which you can start using in your company right now.
But what is stock?
Stock is the number of goods, products, or raw materials stored for a particular purpose, such as sales, distribution, or export, from the moment they enter and leave your company.
How to do efficient stock management?
Although it is a complex process and depends on the size of the company, the nature of the stock, as well as the type of business, there are several cross-cutting techniques that can really make a difference.
Follow these 7 tips to make stock management smarter:
1- Perform regular audits
Either manually or using automatic stock management software connected to the points of sale, keep track of the stock you have on hand on a regular basis. This way, you will be able to identify the actual amount of stock, which items are out of stock, which products can no longer be sold, or which are constantly in dead stock. Detect errors when you still have time to correct them!
2- Define processes and responsibilities
The most effective way to avoid failures and to keep your stocks organized is to define a control process. Establish a method, define check routines, and assign clear responsibilities to each team member. For example, establish that every time an item is sold, an employee must update the available stock in the store.
3- Identify each type of item
Whether manually, by barcode, or other systems, each of the products in stock must be properly identified in terms of product code, quantity, description, or other relevant details – such as origin, batch, or supplier. Effective labeling makes it easier to identify items, avoid product exchanges, and make it easier to track their location and control available quantities.
4- Registre los artículos tan pronto como los reciba
En cuanto reciba un pedido, regístrelo. Olvidar esta rutina es uno de los primeros pasos para perder el control de todo el proceso. Si vende un artículo antes de que esté debidamente registrado, es probable que se produzcan sucesivos errores que serán más difíciles de rastrear y tendrán repercusiones que podrían costarle mucho dinero.
5- Register the items as soon as they are received
As soon as you receive an order, register it. Forgetting this routine is one of the first steps to losing control of the whole process. If you sell an item before it is properly registered, most likely successive errors will occur whose origin will be harder to identify and with repercussions that can cost you a lot of money.
Set up a contingency plan
No matter how efficient your inventory management process is, challenges may arise. Consider what could go wrong and prepare a plan to deal with any such problems. Keep the following factors in mind:
What impact will the problem have on your overall business?
What steps should be taken to solve the problem?
What changes should be made to decrease the risk of reoccurrence?
6- Maintain a good relationship with suppliers
Good inventory management is related to your ability to act quickly and adapt to changes. So, whether you need to return a product that you can’t sell, buy another product faster than usual, or solve a problem with the poor quality of an item, you need to have a good relationship with your suppliers. If there is a relationship of trust, a supplier will more easily help you solve any problems that may arise.
7- Implement a Warehouse and Logistics Management solution
Increase efficiency and significantly decrease time-consuming tasks of receiving, shipping, and counting items with a warehouse and logistics solution. Mobile Logistics is the solution that makes logistics tasks faster and more efficient. Inventory is done on the fly. So, you don’t have to stop the entire company to ensure that stocks are up to date and correct. With the right tool, your warehouse activities are fast and accurate. Through a mobile device, ensure an operation with high-performance rates. Ensure faster and more efficient order handling, fewer errors, and a greater ability to make assertive forecasts.
By following these tips and recommendations for stock management development and execution, you can ensure greater business efficiency. Follow our blog to stay up to date with all our tips and news!
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