Inventory management is an important aspect of starting a small business. It allows you to gauge business profitability, track supply, and manage your stock without exhausting more time and money than you have to. Though it may seem simple, good inventory management takes smart planning and strategic decision-making to achieve an efficient process. Here are some useful tips on inventory management to ensure customer demands are met, and business goals are achieved.
Invest in an inventory management software
One of the best ways to improve your inventory management is to find suitable software to digitise your inventory. Your inventory software can help streamline operations and accomplish inventory tasks faster and more accurately. Various inventory management programs offer different features that will suit your specific goals. Some software options allow you to compare, process, track, and analyse shipments. Others are capable of consolidating customer records so that all your data is in one place. It’s all about investing some time to find out which one integrates best with your business.
Audit stock manually
Your chosen inventory management program can help you with the overall process, making it easier for you to track stock. But you shouldn’t rely solely on the software—it’s imperative to track stock manually too, so you have a better idea of what items to stop ordering, what stock you need to ship off first, and when you need to sell inventory. Utilising a good program and manually auditing your inventory levels to make sure the numbers add up will give you a better chance at meeting customer demands by supplying enough available products.
Review supplier performance
Your suppliers play a role in your inventory. They can cause hiccups in the management process when they’re consistently late with deliveries, or when they short an order. Reviewing supplier performance can benefit your business because it saves you from erratic stock patterns. Create a backup plan and learn when to switch partners to avoid inventory mishaps that cost your business.
Study sales patterns
Beyond just adding up sales at the end, you should be able to analyse the sales patterns of your business. Study the number of items sold and their frequency. Know which items sell faster and which items drop off and try to understand why these patterns occur. Is it seasonal? Or is there a specific day when you sell certain items? Understanding the broader picture of how your items sell is vital to keeping your inventory management efficient and under control.
Spend time on forecasting
Go beyond tracking your sales records. Forecasting entails forward thinking such as studying trends in the market, watching the overall economy, and working guaranteed sales into your plan. Using these pieces of information to project future sales will help you adjust your goals for the best chances at business profitability.
Find new ways to sell excess stock
One of the most common challenges business owners come across when it comes to inventory management is finding ways to handle dead stock. Instead of cashing out for more storage space at the warehouse, you’re forced to sell inventory at low prices that can affect your overall bottom line. A solution to this is to join a platform that can help you get rid of slow stock without the need to discount.
Turn idle stock into a profit with Bartercard!
When you join Bartercard, you can barter with businesses all over the world using trade dollars. The barter business platform helps you gain new customers to fill your business’ spare capacity and sell excess stock without heavily discounting or risking a potential price war with competitors. For a hassle-free excess stock clearance in Australia, choose Bartercard. If you would like to know more, contact us today!