An efficient management of inventory is an essential factor to be able to continue keeping your customers happy. With a growth of businesses, the volume of the inventory also increases with time and requires more warehouses for storing your inventory. While manual operations can suffice at an earlier stage, it can get chaotic when you start getting a large number of orders on daily basis.
Businesses can benefit in many ways of managing inventory by utilizing a software specifically dedicated to these processes. Inventory management issues can be faced by any business whether an established one or a budding one. Managing inventory becomes difficult while tracking every movement of orders.
To make the management process fruitful in every way, here are some ideal steps a business must implement:
Regularly Checking the Inventory Levels
Keeping a careful eye on the levels of stock is a crucial prerequisite for a better inventory management. Maintaining an ideal level of stock is essential to save your business from a slow-moving inventory. Prioritizing orders on the basis of demands and sales projections will increase inventory turnover and bring more happy customers. Also, businesses need to avoid storing unnecessary stock and prioritize on a fast-moving stock.
It is extremely important for the businesses to quickly register all the new inventory that has been received. Furthermore, if you attain your stock from multiple suppliers, you need to accurately register the goods and store them in a manner which enables faster picking and packing. If you have an increasingly larger inventory that demands close attention, then automating the reception process can make things much easier and accurate.
There are many sub-processes in inventory reception like unloading, warehouse selection, and setting up proper placement. Inventory managers must make it a priority to record new arrivals as soon as they reached the storage facilities. Sometimes, when an unrecorded inventory enters the system, it makes processes complicated. Prompt reception of inventory is a good practice for earning profits in the long run.
Sometimes, warehouses are stacked up without setting up a specific system. It is easier to store up stock at a place where it fits, rather than where should it be placed. Categorizing stock according to the relevant channels, rows and columns, type of inventory, and expiry dates can bring a lot more smoothness to the order management. Also, there are many inventories which are packed in the same packages but contain totally different stock. Stacking up one inventory besides an inventory which belongs to a different category can lead to staff messing up while processing. It is, therefore, a vital strategy to implement a system which can sort the inventory.
Regular counting of inventory can help businesses in identifying any damaged or overstocked inventory. The number of times for counting can be reduced by following a rotation policy of stock. Also, businesses must divide their inventories into more focused and specific categories for empowering shipping management. “High Value” and “High Risk” are the two categories in which stock can be divided. Inventory which has the highest potential and the ones which are more vulnerable to any thefts causing higher risks of damage or loss – must be prioritized.
Listing and Replenishing
An inventory software provides the features of a listing of inventory according to the orders placed for a better shipping management. Inventory managers just have to input all the details of the inventory received, sold out, in transit, and delivered ones altogether. The software has an inbuilt process where managers can arrange them according to the nature of the stock. Division of inventory will help in restocking the inventory, predicting the time when a level will exhaust, and how long a business can stock them.
Replenishing stock is another important strategy which should be followed by the businesses for better order fulfillment. There are many instances when only a part of ordered inventory is used, and the rest remains unused. In these situations, it is difficult to estimate a definite amount of stock to be ordered. To maintain a stock level, businesses can part replenish their inventory and process the orders on Last-In, First-Out basis.
If a part of the stock is returned back due to being damaged or defective, businesses need to make sure it doesn’t ruin their maintained stock levels. Cloud software is a great way to track every movement of the inventory. This relieves you from the worries of facing stock-outs. Out of date information has led to most stock-outs amounting to a huge total of revenue loss. Inventory software doesn’t only help in managing inventory better, it leaves the managers with enough time on hand to deal with order fulfillment. Using a software can also help businesses in taking intelligent decisions by gaining insights on consumer demands and trends.
Inventory control systems have an integrated barcode scanning procedure which labels each and every stock with a unique number. These IDs work as a great time-saving tool as every essential process right from, inventory reception, picking-and-packing, and shipping across multiple channels get simplified. Forecasting is a vital process which can help businesses get in-depth information about the markets in which they want to expand by introducing new product lines.