It is very crucial for any new business to have proper organization when it comes to managing stock. One of the reasons for such is because transition of a small business unit to a big one is a line that consists of inventory management. In other words, how you manage your goods and stock might well be the deciding factor in how successfully your business works. The main goal always needs to be finding ways that lead to better inventory management because of how that is able to directly affect sales. Many would consider a stock management system to handle this, but would have to keep in mind the processes around the software too, which are important as well. Let’s look at ways in which you can enhance your stock management process:
Any receipt of goods from a supplier has this stage of checking stock as its first point. It is important that you make note of the stock you receive and use the list of requirements you placed with your supplier to cross-check. You would rather check if there are any issues at this stage than have to deal with them when interacting with a customer at the point of sale.
Storing your stock
Lack of space and labour tends to lead to storage of stock in an unorganized manner. We store goods wherever they fit and that at times can mean facing problems when bringing them out according to customer requirements. Organizing your warehouse on the other hand can help avoid and prevent all of this chaos. Arrange and store your stock where there are shelf numbers and row numbers if possible.
Categorizing your stock is an essential part of inventory management. This helps in being aware with regards to the order in which you have kept your goods and makes it easier bringing these goods out. This would include proper nomenclature, colour coding the items or placing them in a particular order. When it comes to the food industry, this can assist in keeping your chilled, frozen and ambient products in their appropriate warehouse location.
Expiration of products
Handling products that have an expiration date needs you to be more particular with your stock. Removing goods only after their sell by date will result in very severe consequences for the business and that is the last thing you need – whether starting out or having been in the industry for a long while. Therefore, it becomes important to keep track of the expiration dates so you can know what time is best to sell off some products. This will also ensure that you keep your inventory updated.
Keep your records updated
Speaking of keeping products updated, a stock management system will ensure that you have an idea of what’s going with your inventory. If you are delivering any order to your customer from your stock, ensure that the number is recorded in your books. Failure to do so will lead to rush records and that causes important issues to be overlooked.
Give yourself a buffer period
Your business operates on the process of collecting stock from a supplier and then selling the goods to your customer. Therefore a proper balance has to be maintained between the two processes in order to have smooth functioning. When your stock runs out due to high sales, you will need to give your inventory a buffer period where your supplier will provide the goods. Such a process should be maintained carefully and properly.
Make use of technology
Technology features an addition that has made operations a bit easier to deal with and that addition is barcoding. Scanning of barcodes eases the workload and makes it simpler. It also helps when dealing with big orders because it reduces errors significantly and leads to smoother business transactions.
Stock management also involves the handling of returns. This takes place particularly in the fashion and electronics industry where customers tend to return a lot of items. If you are in the business of catering to returns and restocking, making certain all categories, nomenclature and labels are well maintained should be a priority.
Regular checks and rechecks
The last factor to consider looks at the importance of running regular checks of your stock. It might not be a feasible option to go through all the goods however there needs to be a consistent cycle of routine checks. Managing an inventory at your warehouse might be a difficult process to deal with and that’s when you need to have a stock management system in place. An excellent stock management system can help improve overall performance, provide total traceability and clean reporting, and also assist in managing inventory.
If you are finding it challenging to manage your inventory, a proper stock management system might be factor to consider implementing.
Don’t forget to also find out the Reasons Why Inventory Management Is Crucial For eCommerce Sites!