Key Inventory Management Tips for Small Business
One essential aspect of growing any kind of goods-based business is inventory management. If you’re not tracking, ordering, and organizing your inventory efficiently, your business can only go so far. Even if your company is experiencing rapid growth at the moment, it will eventually hit a wall if you get in over your head and begin to lose orders and customers.
Fortunately, there are techniques that can help you to stay on top of your inventory and even forecast what items you need to order in the future. If you own a goods-based business, here are a few key tips for managing your inventory so that you can flourish in the years to come.
Get a good POS system.
Technology can simplify inventory management significantly. One of the best tech solutions you can implement for your goods-based business is a quality point-of-sale (POS) system. Not only do some of the newest POS systems help you provide customers with a fast and easy checkout experience, but they can also help on your end with things like tracking sales and managing inventory — even across multiple locations.
Clearly identify each product.
When you deal with any number of unique items on a daily basis, it’s crucial that each of those items can easily be identified. The most common method to achieve this is by using stock keeping units (SKUs). When paired with inventory management software, SKU numbers help you quickly identify any item, whether it’s for a sale or for tracking inventory. If you do business with resellers, you will probably need to use a universal product code (UPC), which includes a unique 12-digit number and a barcode that can be scanned and matched with a live database.
Track your sold items.
Another important part of managing inventory is tracking the items you sell and who you sell them to. This helps you to know which products are selling the most, which customers are buying the most of a certain product, what times of year experience the most/least sales, and so on. All of this information can help you determine what to order in the future.
Keep tabs on daily order statuses.
Getting orders out to customers in a timely manner should be a top priority of any business. Failure in this area is likely to lose you customers and damage your reputation. At the end of each day, do an audit of all your orders. This will help ensure that no orders are being lost or delayed longer than absolutely necessary.
You can improve the speed at which your customers receive their orders by building a fast and accurate order fulfillment system. Start by creating simple, easy-to-use order forms, coordinating and building strong relationships with suppliers, and learning about supply chain performance by using cloud technology.
Physically check your inventory regularly.
While technology is invaluable for inventory management, it’s still necessary to physically check your inventory on a regular basis. Some businesses find it adequate to do a physical audit each quarter, while others prefer once a month. All you have to do is make a sheet of all your items with the corresponding SKU numbers, do a walk-through of your stock, and jot down the quantities of each item you currently have. Then, you can compare the sheet to your database to see if you need to reconcile any inconsistencies.
No matter what kind of products you sell, your business can only grow as far as your inventory management allows. Consider getting a new POS system that can assist you in a variety of tasks. Make sure every item your offer is uniquely and clearly identified, and consistently track the sales of each item. Perform a daily audit of all sales and a physical audit of inventory each month or quarter. Following these tips is a great start to taking your business to the next level.
Your path to business success.
