At the heart of a successful retail business is an inventory system that is managed with precision.
It can take some time and years of experience to perfect this important aspect of business management, but the rewards are well worth it.
In the following article, we will be taking a look at some methods of improving your inventory management system.
Most of this can be accomplished through the adoption of specific policies that are observed at any time your inventory is accessed or administered by yourself or any other member of your team.
The result is an ongoing process of incremental systematic precision and this helps to avoid many of the common issues arising from poorly-managed inventory.
Interested? Well, stick around because we are about to explore some actionable measures you can take.
These measures will help to ensure smooth sailing and precise inventory management for you and your business.
1. Upgrade Management Tools
The technological age has produced a variety of effective inventory management systems in the form of software solutions.
Inventory management software can provide endless benefits for improving your inventory management.
Take the time to shop around and make sure the solution you choose matches your needs.
2. Apply Tighter Restrictions
Be very careful who has access to inventory and inventory data.
Cloud-based inventory management programs are great for keeping track of inventory and staying updated in real-time.
However, you must be very careful who has access to this vital data. The more people accessing and updating information the greater the chance for errors.
3. Keep Careful Records
Take full advantage of inventory mobile device apps that can scan barcodes and update inventory data instantly.
Through the use of automated inventory systems, records are updated as they are needed.
Tighter control means there is never a need to peek your head in the stock room for another quick count.
4. Use Inventory Management to Reduce Costs
Deals made with some suppliers can include additional and unexpected costs that can pile up catastrophically.
Using an advanced inventory management system can help you identify the factors that increase these costs.
This allows for timely orders that can be fine-tuned to save nickels and dimes. Over-time you can amass a small fortune just from these savings.
5. Perfect Your Physical Inventory Counts
When it comes time to conduct a physical inventory count, prepare the stock room by isolating items in transit and marking off any exceptions along with the specific reasons.
As data is being collected, pass it through a final control checkpoint that double checks the figures and ensures accuracy.
Finally, take a moment to consider what you are looking at and choose the metrics you will want to observe over time.
6. Safety Stock
Safety stock can be a lifesaving asset to meet client demands in times of scarcity, which is really handy.
However, you will notice that a safety stock does tie up resources and limits room in your storehouse.
Using an inventory management system provides vital data that can eliminate the need for a high amount of safety stock.
Through a closer understanding of your inventory trends and patterns, you will be able to predict the safety stock that will meet your needs, save space and broaden your profit margins.
By practising all the above, you significantly reduce the chances of inventory errors and mismanagement.
If you need help managing your inventory, then look no further than ASP Microcomputers.
We are the market leader when it comes to the development of customised and packaged solutions.
This includes Inventory Management, Portable Barcode Readers, Supply Chain Management, Time and Attendance and Asset Tracking to name but a few.
Please call us today on 03 9578 7600 or 1800 061 642 or contact us through our website on https://www.asp.com.au/contact-us/