Inventory management is the foundation of any product-based business. When a foundation fails, the entire business will, too.
Are you noticing a decrease in profits due to inventory issues? Perhaps it is time to redefine how to do inventory.
Keep reading for some helpful tips!
Taking Inventory: The Right Steps
Regardless of the products you provide as a company, the same crucial steps apply. Your managers and staff must follow these steps as they are the key to a healthy business.
Organize Your Products
This might seem obvious to you, but you might be surprised by the lack of organization in many companies. If items are hidden from view, your staff might not be able to find them. In turn, the products will collect dust, expire, or are no longer relevant to your business.
Make sure that each product has a set spot, a clear view, and plenty of space for overflow. If you notice that you cannot organize it properly, look into renting other spaces.
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Organize Your Data
Organizing your products is a good first step, but it doesn’t stop there. If your data doesn’t line up with your products, you will also make mistakes in ordering.
If you are using a spreadsheet, make sure you check your inventory on a weekly, sometimes even daily, basis. Then, crossreference it with the sales to pinpoint any discrepancies.
Organize Your Team
Lastly, your team should become aware of the changes you are making. It is hard to get rid of old habits, but informing and following up with your team about the systems you have in place will do wonders.
Inventory Management: The Right Tools
If you have a small company, the chances are that you will do just fine with a spreadsheet and a manual count.
However, if you have several different products, a large team, and a complicated system, the likelihood of issues arising is high.
Using software that tracks incoming and outgoing products can prove very beneficial. Based on this data, you can view what products are selling well, the latest trends, and determine future purchases.
Inventory Tips: Managing 101
If you buy from different suppliers, consider organizing your wares in their categories. It will make for an easier time when you are reordering supplies.
You should also have a backup plan in case of the unexpected. The pandemic is proof that anything can happen in the supply chain. Who would’ve thought we would run out of toilet paper?
We can’t prepare for everything, of course. However, we can make leave wiggle room in case disaster strikes.
How to Do Inventory: The Right Way
Do you and your team know how to do inventory? If they don’t, they should read this article! Inventory for businesses is crucial to know for everyone involved.
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