Did you know that one out of three businesses has missed a shipment deadline because they had sold an item that was not in stock? In these instances, the company loses trust with customers and inevitably, profit. So do you know how to avoid these embarrassing situations?
That comes from an efficient inventory system. Read on as we discuss five mistakes with inventory management you must avoid.
1. Going Manual
Automation is the key to a great inventory management strategy. The methods of supply and demand have changed, and you need to adapt to them. It is no longer enough to track inventory manually, using paper, pens, and Excel.
Automation lets you update in real-time. This means fewer errors occur, and fewer customers are disappointed.
2. Not Having an SKU for Every Product
An SKU is a unique identifier for each product in your inventory. It lets you quickly pull up information on the product using a unique code. They are essential for a clear and concise inventory management system.
Take time to assign your SKU codes. You can then place similar products in SKU categories. This helps when looking for products that are similar in nature but have differences you don’t want to get wrong.
3. Not Training Staff
Even with fairly standard, modern methods of warehousing and doing inventory, your company will still have some unique ways in which it operates. That is why it is crucial to deliver training, as you can not just expect people to know the process instinctively.
Make sure everyone who has any involvement, knows the basics of the system. After this, hire staff who have the designated task of tracking and managing inventory.
4. Allowing Individual Methods Between Branches
When you have a method of how to manage inventory, you need consistency across branches. This means operating the same method of inventory management in every store and warehouse you operate.
If you need to swap items or products between them, problems will arise if they use different techniques. They should be using the same inventory management software that allows communication with each other.
5. Not Doing Mini Stock Checks
By doing stock checks, you are able to check which products are selling best and which are not faring so well. If you have automated processes, this becomes even easier. However, for anyone else, a stock check is done after hours and can be an expensive process.
Instead, do smaller stock checks. For example, if you are a furniture store you may check sofas one day and beds the next. Alternatively, keep your stock elsewhere using a service such as Fulfilltopia.
Mistakes With Inventory Management
Now you know these mistakes with inventory management, you can pre-empt them and hopefully avoid future mistakes. There are many more, and some may be unique to your operation. However, by following these rules your inventory is sure to improve and save you money.
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