Inventory management is a very big part of running a business, and yet, it’s one that’s often swept under the rug in favour of more profitable pursuits.
You can have all the time in the world to build connections and create relationships, making sure you have a strong customer base and the ability to impress an investor, but you also need the resources out back to back yourself up.
And when you have a less than stellar management system, or you haven’t given your stock room and your asset inventory much thought lately, you might be letting yourself down in ways you don’t know about. So here’s a couple of tips on bulking out a good system, and getting yourself
Know What Products are a Priority
Take a look at your profits margin, and then take a look through the checkout records - what do you notice? Is there a certain product that’s been bought more often than any others? Is there a deal you’re currently running that’s being rung through the tills more often than you expected it to?
Are you making more money from one product alone, compared to anything else you’ve got stacked on the shelves?
Well, now’s the time to take notice, and start ordering more of this product in. You want to have a good stock of them in your inventory, to make sure customers can always be satisfied in their clear want for it. And not only that, but it’s a good way to clear out the stockroom, to make space for the goods on hand that are actually netting you a good income.
Think About Your Floor Space
Is your stock room big enough? How many products so you have back there? Are the shelves clearing fast enough to be weekly restocked without any storage problems? If not, it’s time to take a look at the floor space you have on hand. There’s a good chance you don’t have enough.
It would be a more cost effective method to rent out some professional storage solutions than to try and keep rotating stock you’re clearly not able to shift.
Once you realise what stock isn’t working out, because it’s been cluttering your floor space for months, you can cut down on the costs. After all, you can stop bulk buying from the supplier you have, and instead put the money towards accommodating the business you’re currently operating with.
Check Up on Your Suppliers
The suppliers you use need to be reliable, and they need to have a strictly professional relationship with your company. They need to be on time and with the right amount of products you ordered in the truck, ready to unload. And if they can’t do either of these tasks, it might be worth it to look into your other supply options.
Managing your inventory isn’t difficult. Make the decision now to make it a priority.