Streamline Your Supply Chain: 5 Expert Tips for Efficient Stock Management
Stock management is essential to any business, whether the business is into selling products to customers or distributing goods.
It’s a task that can be difficult to get right. You can avoid running out of items and losing sales if you manage your stock well.
If you overstock items, you may find yourself sitting on unsellable goods.
Of course, stock management often feels like an impossible task when juggling multiple stock items and trying to keep everything in check.
Especially if you’re a small business owner who needs more money to spend, ensure that you’re managing your company’s inventory efficiently.
So, how can you manage your stock in a way that allows you to keep up with demand and get the most out of your budget?
This inventory management guide for small businesses will help you in managing your stock easier than you might have thought.
The Importance of Accurate Stock Tracking in Effective Stock Management
- Use The Right Inventory Management Software
Inventory management software is one of the most effective ways to manage your inventory.
It allows you to track every item in your warehouse and ensure that everything is accounted for.
If you have multiple locations, it’s crucial to use an inventory management system because you need to keep track of all the items moved from one location to another.
It can also help you track the items sold, calculate profit margins, and determine how much money you’re losing or making daily.
It will allow you to determine which products are selling well and which ones aren’t.
Examples of this software include:
- Barcode Software: They’re a great way to keep track of your inventory. You can use barcodes to scan products as they come into the store, mark them as sold, or even track them when they’re being shipped out.
- QR-code Software: They’re similar to barcodes but more convenient because you don’t have to scan them with a handheld scanner, just your phone. You can use these as a way to track inventory and sales of your online brands as well.
This software helps you create a database and keep track of your inventory, manage employees and customers, and make it easier to run a business.
- Monitor Expiry Dates
Monitoring expiration dates are essential when it comes to running a successful business.
As a small business owner who’s just coming to gain customers, you don’t want to sell expired products or, worse, have people get sick because of something you sold.
Keeping track of your inventory will help ensure that you don’t have expired items on the shelves.
Expired items for business owners lead to:
- Lost sales
- Product waste
- Damaged reputation with customers
- Lost revenue
- Negative reviews from customers
- Potential lawsuits for selling unsafe products
So, monitoring the expiry dates for items in your stock helps reduce the likelihood of dealing with these issues and even creates more space when expired items are taken out of stock.
- Label And Categorize Inventory
When you categorize your inventory, it will be easier to find what you need.
It’s also helpful when it comes time to restock because you can easily see which items are running low and need replenishing.
Customers will easily find the necessary items if your inventory is labeled and categorized.
It can help increase sales by ensuring customers stay satisfied because they can find what they want.
For example, suppose your inventory includes a category of teas and coffees.
In that case, it’s helpful to label each type by country of origin and brand.
Customers can then easily browse through the selection, looking for their favorite varieties.
- Know Your Inventory And How Much You Sell
Knowing your inventory and how much you sell makes it possible to know what’s going out of stock.
You need to know the items going out of your list to know what items need restocking.
In fact, as a small business owner, you’ll have things that sit on your shelves for a long time without reordering.
Knowing your inventory, you’ll learn how much you sell each day and where the gaps are.
For example, suppose customers demand 10 cups of coffee daily, and you have 15 left.
In that case, you know when to reorder so that you won’t be left empty before the subsequent arrival of the coffee shipment.
- Efficient Returns Management
Returning products is part of running a business.
You may have received defective products from your suppliers, or the customers might need more than what they bought.
You must ensure that all returned items are processed and checked before sending them back to their owners.
In addition to the management of items being returned, it helps you in the following ways:
- It enables you to keep an eye on products that your customers frequently produce.
- It helps you know which supplier delivers poor-quality products, allowing you to take appropriate action.
- It lets you know which product you should avoid stocking in the future based on the return frequency.
- It ensures you don’t have any dead stock in your warehouse.
Return management is a critical component of your inventory management.
So, if you are an inventory manager, it’s crucial to understand how returns management helps you manage your stock better.
Stock management is a crucial aspect of any business.
So, you should know how to manage your inventory optimally.
You need to understand how to manage your stock in a way that helps you avoid any losses and ensures that you don’t have any dead stock lying around in your warehouse.
The tips offered in this guide will help you manage your inventory better.