If you’re operating a small business, inventory management is an essential element to make it a success. It’s a great way of keeping track of what’s selling and how much stock remains. If you have good inventory management, you can also keep your online store profitable and functioning. While it seems to be a challenging task to do, there are ways where you can use it to manage and improve your business’ stock-flow properly.
Here are a few tips and tricks you can consider for your inventory management.
1.Establish a stable relationship with the suppliers.
If you want to have a stable inventory management situation, it’s essential that you maintain a strong relationship with your suppliers. When there’s an issue to resolve, or you’re looking to replace a poorly selling item, having a good relationship with them can make sure that these concerns will be addressed efficiently and quickly.
That said, be sure you make an effort to manage your relationship with the third-party suppliers by showcasing your value. By doing it, you can look forward to an inventory-based success in no time.
2.Do simple tracking.
Inventory management doesn’t mean you only have to focus on knowing what products to sell and how many stocks are available. If you’re looking for a robust inventory management system, it’s best to start with simple tracking. Organize your products in a way that it’ll be easy for you and your shoppers to find. You can use a spreadsheet in CSV format to incorporate several items at once.
Don’t forget to use categories in organizing all your items. That way, you can easily search the product through its name, product type, product description, category, and SKU. If you’re an online seller, visit fbabee now to know how a freight forwarder like them can help you make the shipping process cheaper, easier, and faster
3.Apply the FIFO approach (First in, first out).
This inventory management tip is beneficial for perishable products such as flowers, food, and makeup. After all, selling goods in chronological order as they’re purchased can improve your inventory. Moreover, it’s not also good for items to sit around for too long as they can be damaged or become unsellable over time.
As a business owner, apply FIFO approach in your inventory system so you can get older products at the front and add new items from the back.
4.Improve sales with tracking tools.
Running a small business means you need to use an inventory management system that helps you improve sales. In most cases, online stores which have a product scarce generate more conversions. Hence, it’ll help if you make sense of urgency with your customers by letting them know that a particular item is about to run out.
To do this, you can use several tracking tools that allow you to show them how many items are still available and how many are on sale or low in stock. This tip, for instance, can encourage shoppers to make a purchase.
5.Hire a stock controller.
Having lots of inventory to manage can be an overwhelming task as a small business owner. That’s why you need to hire someone to be responsible for stock control. If you get a stock controller or purchase order quickbooks, knowing the amount of inventory you have for all items can be done more efficiently. They also manage all purchase orders, accept deliveries and ensure that everything that’s coming is the same with what was ordered.
Remember, if you hire a stock controller, your inventory management system will be working correctly.
6.Factor in quality control.
Inventory management isn’t just about monitoring your stocked items. It’s also about making sure that all your products look great and more importantly, are in good working condition. Assign an employee who can conduct a quick examination which includes a checklist for correct product labeling and any signs of damage. That way, you can ensure that the products you’re selling have been under a strict quality control process.
7.Use ABC in prioritizing your stocks.
Another vital element when it comes to inventory management is using the ABC system to your advantage. You’ll find it helpful to have strict controls over higher-value items when you group them into A, B, and C categories. Besides, your high-value items will require most of your attention regarding handling since their turnover is much lower than those in other categories.
Taking advantage of the ABC model will help you stay focused and organized in ensuring your inventory management efforts.
As an entrepreneur, making a wise investment in your inventory management system will make a huge difference to the ongoing success of your small business. To ensure you’ve made the perfect strategy for your business, take time to understand these tips and tricks when it comes to managing your inventory effectively.