Are you running any company and you have a bulk of stock but you don’t know how to handle the stock in inventory?
If it is, then don’t worry!!
Being a business owner you know that managing inventory is the utmost need of the business. Inventory management is a requirement in every organization like the hospital, college, salon, etc.
This is an integral part of any business. No business can be properly managed without handling inventory. It’s important to track and handle all the business orders. The improper list can lead to an increase in the expenditure, labour costs, which can disrupt the supply chain.
This can reduce the sale and disturb the business processes in the inventory. It is an act of keeping track of the company stock goods with some other factors like weight, dimensions, amount, location, etc.
Organising stock digitally is extremely helpful and also reduces the burden. Nowadays, companies prefer inventory management software which lessens the stress in business tasks with better insights and records. Here we are going to review seven ways to manage inventory with the tool in a better way.
Table of content
- 7 Ways of inventory management in your business
- Evaluate the performance of the supplier
- Follow 80/20 inventory rule
- Good relation with product companies
- Regular audit
- Track all product information
- Record sales
- Better CRM and assign duties
- Wrapping up
7 Ways of Inventory Management in Your Business
Evaluate the Performance of the Supplier
Many companies spend a lot of money on goods and services. It’s imperative to know the company attitude towards suppliers. Most of the companies claim that they are building partnerships with their suppliers.
Make sure that your company has written rules with the supplier so that it doesn’t do any fraud with your organization. Most small companies don’t check the performance of the suppliers and this is the biggest mistake they ever make. Always check the purchased material, time of delivery, etc. This will help to count the performance of your supplier.
Follow 80/20 Inventory Rule
If you consider the 80/20 inventory rule, then it helps to take your business to peaks. Companies get the 80% benefit from the 20% maximum effort. Apply this rule in-stock inventory.
Selling of products and providing services on a first in first out pattern helps to minimize the loss. The analysis assists to improve the finance which will keep the lifecycle of products better and in this way you can keep the commodities in stock and enhance the profit.
Good Relation with Product Companies
It is the responsibility of the company to sell the products right and take care of the stock of the company. Always keep in mind to support an organic relationship with a client, you must provide the potential product to the customer.
By giving the demo of the product, you can surely inspire new customers. This way your customers will invest in your company. For meeting demands, you can choose the appropriate ways to make a good relationship with clients. This will increase brand loyalty and boost up your sales.
For managing inventory, it is imperative to have the record of the business. Regular surveys help in handling the budget and finance of the business. The auditor helps to do the analysis which will make a report of the products sold, left, required for running a business.
Inventory works like an asset which will generate the revenue for you. Auditors can inspect a company which can be done weekly, monthly or yearly.
Surveys ensure the growth in your business. The inventory management software tells you about the current status of the business. From the inspection report, you can check the competition in the business which will help give the best results.
Track All Product Information
To keep the record of the product in your inventory is very mandatory for the long term in your to-do list. While tracking the product you must include the stock keeping unit, suppliers, country, and barcode data. With these factors, you will be aware of the cost, when, and what things are required.
This is reviewed by the auditors which will help to reduce the errors. you can avoid the mistake by avoiding the barcoding mistake. In this process, auditors scan the bar-code of products and commodities. The complete information handles the record which will make the inventory work easier that can easily verify the availability of goods in the company with reports.
It is a brainstorming process to track all the sales of your company. You want to know about your daily transactions and want to keep a record of your sales to understand the items sold, the items left, and the required products in the future.
For that, you need to analyze the data correctly. The software helps to manage the different tasks in just seconds and shows the real picture of the product. This factor helps to keep the inventory tasks under control. Tracking sales helps to reduce any fraud in the company.
Better CRM and Assign Duties
Managing inventory is a critical process as everything is managed at the front-end as well as at the backend. There are different business operations like billing, shipping, sale, purchase, supply, accounting details, etc. that have to be dealt with at the backend.
To pipeline all such services is difficult too. But with the better software, you can reduce the difficulty of the business and streamline all the processes. It helps to supervise the critical reports, expiry date control, real-time stock control, product usage etc. You can effortlessly handle all the business tasks with the software. If you have a salon, Salon software helps you to manage inventory easily.
Another factor is to assign duties, the first factor is to hire the inventory manager that will help to cope up with the duties in your business. The manager will handle the inventory, and the manager will support and assign the duties accordingly.
The inventory manager helps to manage the orders, arrange the shelves whenever the products arrive. Assigning duties can make the booking easily and effortlessly.
Here we have discussed the easiest ways to manage the inventory. By implementing some tips, you can achieve a better level of inventory management in your business.
Hopefully, this article gives you maximum information and more benefits.
Your suggestions and queries are welcome. Feel free to ask in the comment box below.
Thank you for reading!!
Zin Lang Liu is associated with Salonist, a smart salon software for all types of beauty wellness industries. She assists business owners on how to grow their business through fully featured software.