Are you struggling to track inventory for your business?
Poor inventory management affects business growth in many ways. It impacts profit and logistics and increases indirect costs, to name a few. When left unchecked, all these issues can lead to a failed business.
Inventory management can be tricky, but some strategies can help you. The good news is our guide can help. Continue reading below for five ways to track your stocks and improve your operation.
1. Focus on Accurate Forecasting
Enhance your forecasting and aim for accuracy. Revisit your historical sales figures and use them as a baseline to calculate the inventory. Aside from previous sales, look into current market trends and economic growth predictions.
Evaluate your marketing strategies. Analyze their effectiveness and determine how they impact your sales and product movement. Use forecasting reports to match your inventory levels with predicted sales volumes.
2. Practice ABC Analysis
Practice the ABC analysis at all costs. This technique separates your warehouse items into three groups: Group A, Group B, and Group C.
Group A features your primary inventory or your most profitable products. If you are in the manufacturing industry, your raw materials take the top spot in Group A. You will have nothing to sell without these items.
Group B covers less valuable items than the previous group. These can be raw materials not present in all your primary products. They can also be goods belonging to your seasonal catalogs.
Group C represents your cheapest raw materials or with little value. They play a role in your brand’s success, but they are your least priority.
Applying the ABC analysis gives you a better perspective of your products. It also keeps you from mixing up valuables with the rest. Otherwise, you will end up confused when ordering.
3. Track Inventory Using Software
As your business grows, so will the data about your inventory. Manually organizing data or using older methods is time-consuming. Through reliable inventory software, you can track product movement faster.
You can also reduce human error and enhance your brand reputation. Reliable inventory software can sync with your SKUs. It helps segregate items from your physical store and your online shop.
Determining where a specific sale came from is easy. It applies to both online and physical shops. Track inventory using top-notch software.
4. Improve Supply Chain Management
Strengthen your supply chain management. Optimize your relationships with your suppliers, sources for materials, and drop-shipping partners. Monitor your lead times when ordering materials.
Track your warehouse deliveries and inform your partners if you notice any delays. You may encounter problems with your production process, shipping, and receiving. It usually happens during the crazy holiday season.
5. Perform Regular Audits
Track sales more accurately by performing regular product audits. Reconcile your records with the actual inventory count. Start with a quarterly audit and make it more often as your inventory increases.
Better Track Your Inventory Now
Following these techniques allows you to track inventory faster without compromising accuracy. You can improve your product movement and boost your customer service.
Did this guide help? If so, consider reading our other posts today.
